Goods and Services Tax Network (GSTN) has issued an Advisory dated 17th February 2023 regarding the Introduction of Negative Values in Table 4 of GSTR-3B. The advisory is reproduced below for ready reference of our readers.
The Government vide Notification No. 14/2022 – Central Tax dated 5th July 2022 has notified few changes in Table 4 of Form GSTR-3B (Eligible ITC) for enabling taxpayers to report correct information regarding ITC availed, ITC reversal and ineligible ITC in Table 4 of GSTR-3B. According to the changes, the net ITC is to be reported in Table 4(A) and ITC reversal including those as per rules 38, 42 and 43 of CGST Rules and sub-section (5) of section 17, if any, is to be reported in Table 4(B) of GSTR-3B.
Currently in GSTR-3B, credit note (CN) is being auto-populated in Table 4B(2), as ITC reversal. Now in view of the said changes, the impact of credit notes are also to be accounted on net off basis in Table 4(A) of GSTR-3B only. Accordingly following changes have been made in the GST Portal from January-2023 period onwards and shall be applicable from tax period – January 2023’ onwards.
a. The impact of credit note & their amendments will now be auto-populated in Table 4(A) instead of Table 4(B) of GSTR-3B . In case the value of credit notes becomes higher than sum of invoices and debit notes put together, then the net ITC would become negative and the taxpayers will be allowed to report negative values in Table-4A. Also, taxpayers can now enter negative values in Table 4D(2) of GSTR-3B.
b. Consequent updates/ modification in the advisory, messages, instructions, and help-text in form GSTR-2B, without any structural changes in form GSTR-2B summary or tables have also been done in GSTR-2B.
c. The calculation logic of Comparison Report has now been changed accordingly.
The taxpayers are advised to go through instructions/help text carefully in GSTR-2B & System Generated GSTR-3B pdf before filing GSTR-3B.
Source GST Portal: https://www.gst.gov.in/newsandupdates/read/569
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