ITC (Input Tax Credit) – Table 4 of GSTR-3B

Input Tax Credit (ITC) is an important concept in the Goods and Services Tax (GST) system. It is a credit that can be claimed by a registered taxpayer for the tax paid on the input goods and services used in the course or furtherance of business. In this article, we will discuss the details of ITC under the GST system and specifically focus on Table 4 of GSTR-3B.

What is GSTR-3B?

GSTR-3B is a monthly return that needs to be filed by registered taxpayers under the GST system. It is a summary of the outward and inward supplies made during the month and the tax paid on them. It is a self-declaration of a taxpayer's tax liability for the month and the ITC claimed during the month. The due date for filing GSTR-3B is the 20th of the succeeding month.

What is Table 4 of GSTR-3B?

Table 4 of GSTR-3B is where a taxpayer needs to declare the eligible ITC available for the month and the ITC claimed during the month. It is divided into two parts – Part A and Part B.

Part A – Eligible ITC

Part A of Table 4 is where a taxpayer needs to declare the eligible ITC available for the month. Eligible ITC means the ITC that can be claimed by a taxpayer for the tax paid on the input goods and services used in the course or furtherance of business. The eligible ITC can be claimed only if the taxpayer has proper tax invoices or other prescribed documents evidencing the payment of tax on the input goods and services. The eligible ITC can be claimed for the following taxes:

Central Goods and Services Tax (CGST)
State Goods and Services Tax (SGST)
Integrated Goods and Services Tax (IGST)
Cess

The eligible ITC will be auto-populated from the previous month's return and the taxpayer needs to make any adjustments or modifications to it for the current month.

Part B – ITC claimed

Part B of Table 4 is where a taxpayer needs to declare the ITC claimed during the month. ITC claimed means the ITC that a taxpayer claims for the tax paid on the input goods and services used in the course or furtherance of business. The ITC claimed can be claimed only if the taxpayer has proper tax invoices or other prescribed documents evidencing the payment of tax on the input goods and services. The ITC claimed can be claimed for the following taxes:

Central Goods and Services Tax (CGST)
State Goods and Services Tax (SGST)
Integrated Goods and Services Tax (IGST)
Cess

The ITC claimed will be the amount of eligible ITC that a taxpayer wishes to claim for the current month. It can be equal to or less than the eligible ITC available for the month. The ITC claimed will be reduced by any reversals or adjustments made during the month.

How to claim ITC in Table 4 of GSTR-3B?

To claim ITC in Table 4 of GSTR-3B, a taxpayer needs to follow the following steps:

Enter the eligible ITC available for the month in Part A of Table 4.
Make any adjustments or modifications to the eligible ITC available for the month in Part A.
Enter the ITC claimed during the month in Part B of Table 4.
Reduce the ITC claimed by any reversals or adjustments made during the month.
Make any other adjustments or modifications to the ITC claimed during the month in Part B.

Conclusion

ITC is an important concept in the GST system and Table 4 of GSTR-3B is the place where a taxpayer needs to declare the eligible ITC available for the month and the ITC claimed during the month. It is important for a taxpayer to understand the details of ITC and GSTR-3B to comply with the GST law and avoid any penalties or interest.