Introduction:
In a recent update, the Goods and Services Tax Network (GSTN) has introduced a significant extension to the deadline for declaring the opening balance for Input Tax Credit (ITC) reversal in the Electronic Credit and Re-claimed Statement on the GST portal.
1. Purpose of the Electronic Credit and Re-claimed Statement: To ensure correct and accurate reporting of ITC reversal and its subsequent reclaim, the GSTN introduced a new ledger named Electronic Credit and Re-claimed Statement on the GST portal. This statement aids taxpayers in tracking ITC that has been reversed in Table 4B(2) and subsequently re-claimed in Table 4D(1) and 4A(5).
Click here for a detailed advisory (Reference: GSTN/Advisory/2023/XX) provided earlier regarding this statement.
2. Deadline Extension: To further assist taxpayers and provide them with ample time for compliance, the GSTN has extended the opportunity to declare the opening balance for ITC reversal in the statement until 31st January 2024.
3. Limited Amendment Opportunities: After declaring the opening balance for ITC reversal, taxpayers will be provided with only three opportunities for amendments post-declaration. This limitation is in place to correct any mistakes or inaccuracies in the reported opening balance.
4. Amendment Deadline: Taxpayers can avail themselves of the facility to amend the declared opening balance for ITC reversal until 29th February 2024. It is crucial for taxpayers to utilize this period for any necessary corrections.
In conclusion, this update aims to make the process of reporting ITC reversal and reclaim more accurate and streamlined. Taxpayers are encouraged to take advantage of the extended deadline and ensure the correctness of their declarations within the stipulated time frame. For further details and guidance, please refer to the detailed advisory provided on the GST portal
