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Changes in GSTR 3B w.e.f. 01-09-2022: The Short Overview
a) ITC in GSTR 2B for a tax period not claimable due to “receipt of goods in next period” or goods not received at all or because supplier has failed to pay tax:
To be claimed first in Table 4A(5) of GSTR 3B
II. To be reversed in Table 4B (2) of GSTR 3B
III. To be “claimed again” in Table 4A (5) in “tax period in which goods are received” or tax period in which supplier makes payment of tax
IV. To be shown in Table 4D (1) in the tax period in which “ITC is re-claimed”.
b) Reversal of “ITC wrongly availed in previous tax periods” because of inadvertent mistake may be done in 4B (2)
c) “Ineligible ITC u/s 17(5)” to be first claimed in 4A(5) and then reversed in 4B(1). Ineligible ITC u/s 17(5) shall no longer be reflected in table 4D as was being done in old format of GSTR 3B
d) “ITC ineligible due to place of supply restrictions or because of the limitation period of claim of Input Tax Credit U/s 16(4)” is shown in table 4 of GSTR 3B to be also shown in Table 4D (2) of GSTR 3B. This information shall not be entered in Table 4A or 4B of GSTR 3B
e) Reversal of ITC by “banking companies” u/s 17(4) read with R.38: First full amount of ITC shall be shown in Table 4A and then reversal shall be made in Table 4B(1)
f) “ITC reversed under Rule 42 and 43” because of partial exempt supplies, if reversed by making entry in 4B (1)in excess may require reclaim in Table 4A(5) because of Rule 42, however no row has been kept in table 4D for reclamation of such ITC. Advisory issued by GSTN says that ITC reversed in 4B (1) is not reclaimable, however Rule 42 perceives the restoration of excess reversal.
g) Similarly if “ITC blocked in 17(5) and reversed in 4B (1) is subsequently found to be eligible”, though may be reclaimed in 4A (5) but there is no row in 4D to reflect such reclaim. Advisory of GSTN says that ITC reversed in 4B (1)is not reclaimable.
h) Reclaimable reversals for “failure to pay suppliers within 180 days” may be parked in 4B (2). Reclamation at the time of payment through 4A(5) shall be supplemented by disclosure in 4D(1)
i)”Lapse of ITC on opting for composition scheme or when taxable goods become exempt” shall be parked in 4B (2).
j) Reversal of ITC on inputs and capital goods held in stock on the date of “cancellation of registration” may also be effected through 4B (2)
k) Supplies of “restaurants, hotels, motor cabs etc., housekeeping” through e-commerce operators to be shown in table 3.1.1(ii) of GSTR 3B. Earlier Point 11 of Circular 167/23/2021 dated 17-12-2021 had required to reflect such supplies in table 3.1 (c) of GSTR 3B for the time being So, treatment as per Circular 167 was only ad hoc treatment.