Changes in Table 4 of GSTR 3B – Reporting of ITC availment, reversal & Ineligible ITC

The Government of India introduced the Goods and Services Tax (GST) in July 2017, and since then, various changes have been made to the GST return forms, including GSTR-3B. Table 4 of GSTR-3B relates to the reporting of Input Tax Credit (ITC) available, reversed, and ineligible ITC. The table consists of the following fields:

ITC available (whether in full or in part):

1. This field is used to report the total ITC available on all purchases made during the tax period. The amount reported in this field should be the sum of all ITC available for inward supplies, including imports and inward supplies from a SEZ unit or a SEZ developer.Taxpayers can claim ITC on purchases made for business purposes. The ITC claimed should not exceed the tax amount paid to the supplier. Taxpayers are required to separately report the ITC available for IGST, CGST, SGST, and Cess in this field.

ITC Reversed:

2. This field is used to report the total amount of ITC that is reversed during the tax period. ITC can be reversed due to various reasons, such as non-payment of the supplier, goods or services used for personal purposes, or goods or services used for exempt supplies.ITC can be reversed either fully or partially. If a taxpayer has availed ITC but fails to pay the supplier within 180 days from the date of invoice, the ITC availed on such invoices needs to be reversed. Similarly, if a taxpayer uses goods or services for personal purposes or for making exempt supplies, the ITC availed on such goods or services needs to be reversed.

Ineligible ITC:

There have been no recent changes to Table 4 of GSTR-3B. However, it is essential to ensure that the correct amount of ITC is reported in each field to avoid any discrepancies in the GST return. The correct reporting of ITC will also ensure that the taxpayer is claiming the correct amount of ITC and is in compliance with the GST law.This field is used to report the total amount of ITC that is ineligible during the tax period. ITC can be ineligible due to various reasons, such as goods or services used for personal purposes, goods or services used for exempt supplies, or goods or services used for non-business purposes.

It is important to note that the ITC claimed in the GST return should match with the ITC claimed in the books of accounts. Any mismatch can lead to a notice from the GST authorities, and penalties may be levied. Therefore, it is important to ensure the accuracy of the ITC claimed and reported in the GST return.

Changes in Table 4 of GSTR 3B – Reporting of ITC availment, reversal & Ineligible ITC FAQs

Here are some frequently asked questions (FAQs) regarding Table 4 of GSTR-3B:

1. What is ITC, and how can I claim it in GSTR-3B?

Input Tax Credit (ITC) is the credit of the tax paid on purchases made for business purposes. To claim ITC in GSTR-3B, you need to report the total ITC available on all purchases made during the tax period in Table 4 of GSTR-3B.

2. How can I reverse ITC in GSTR-3B?

You can reverse ITC in GSTR-3B by reporting the total amount of ITC reversed during the tax period in Table 4 of GSTR-3B. ITC can be reversed due to various reasons, such as non-payment of the supplier, goods or services used for personal purposes, or goods or services used for exempt supplies.

3. What is ineligible ITC, and how can I report it in GSTR-3B?

Ineligible ITC is the credit of the tax paid on goods or services that are not eligible for claim under the GST law. You can report the total amount of ineligible ITC during the tax period in Table 4 of GSTR-3B.

4. What are the consequences of incorrect reporting of ITC in GSTR-3B?

Incorrect reporting of ITC in GSTR-3B can lead to a notice from the GST authorities, and penalties may be levied. Therefore, it is important to ensure the accuracy of the ITC claimed and reported in the GST return.

5. Can I revise Table 4 of GSTR-3B?

No, once you have filed your GSTR-3B return, you cannot revise Table 4 of GSTR-3B. However, you can make corrections in the subsequent tax period by reporting the correct ITC in the relevant field.