September 1, 2023

New GSTN Advisory on Reporting of ITC Reversal Opening Balance

The Goods and Services Tax Network (GSTN) has recently issued an advisory to provide taxpayers with guidance on reporting their ITC Reversal opening balance. In this blog post, let's dive into the advisory and its implications for taxpayers.

What is ITC Reversal Opening Balance

Firstly, it’s crucial to understand what the ITC Reversal Opening Balance means. So it refers to the Input Tax Credit (ITC) that has been reversed but can be reclaimed. Essentially, it's an amount that taxpayers are entitled to but haven't claimed yet.

Key Highlights of the Advisory

Purpose of the Facility

The GSTN has provided this facility to aid taxpayers in reporting their ITC Reversal Balance that remains unclaimed.   

Eligibility to Reclaim

Taxpayers should report only those ITC reversal balances that are legally eligible for re-claim. This means you shouldn't include amounts that have already been claimed. 

Timelines to Remember

The advisory has outlined strict deadlines for taxpayers:

1. Taxpayers can report their opening balance until November 30, 2023.

2. Any changes to the reported balance can be made up until December 31, 2023. Beyond this date, no changes can be made, and the reported amount will be final. 

Finality of the Reported Balance

After December 31, 2023, the balance will be frozen. Taxpayers will not be able to make any modifications. The Jurisdictional Tax Officer will then review the ITC Reversal value.  

Limits on Amendments

The GSTN encourages thorough due diligence, as taxpayers can amend their ITC reversal opening balance only three times.

The credit of the reported balance

Whatever balance is reported or altered by taxpayers will be credited to the “Electronic Credit Reversal and Re-claimed Statement.” This is crucial because it will validate the taxpayer's ITC Re-claimed amount in Tables 4A(5) and 4D(1) of Form GSTR-3B.

Importance of Compliance

Taxpayers should be cautious and only use this facility if they possess an ITC reversal balance that qualifies for re-claim but has yet to be reclaimed. Incorrect reporting can have legal repercussions and potential penalties.


In conclusion, it is important for taxpayers to understand and adhere to advisories issued by the GSTN. However, the recent advisory on the ITC Reversal Opening Balance demands accuracy, adherence to timelines, and understanding of the eligibility criteria to ensure hassle-free compliance. It also provides a unique opportunity for taxpayers to reclaim amounts they're entitled to. 


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