The GST Portal has undergone several changes as a result of the Goods and Services Tax Network (GSTN). Input Tax Credit (ITC) auto-population in Form GSTR-3B has been modified.
The new modifications now auto-populate ITC as the net of credit notes in table 4 of the GSTR-3B form rather than treating them as reversals as they were in the past.
The logic will be changed to guarantee that the amounts auto-populated in GSTR-9 table 6A, “Total amount of ITC availed through GSTR-3B,” match the GSTR-3B returns.
- Tap on the ‘4. Eligible ITC tile.
- The information of the claimed ITC/ ITC reversed in table 4A(1,3,4 and 5) and 4B(2) are auto-drafted from relevant entries of form GSTR-2B. Other reversals are needed to get done through the assessee on his own.
- In the case when you want to add/ modify the auto-drafted details, you can add/ change the information when required.
- Tap on the CONFIRM button.
The new modifications now auto-populate ITC as the net of credit notes in table 4 of GSTR-3B rather than treating them as reversals as they were in the past. In table 4 of the Goods and Services Tax Return (GSTR-3B), the input tax credit (ITC) was formerly calculated using the credit notes as reversals.
With the most recent adjustments, however, the procedure has been automated, and the ITC is now automatically filled out based on the net of credit notes. As a result, the credit notes are now taken into account when calculating ITC, which prevents the need for laborious computations and instantly changes the final number in table 4. This modification streamlines the ITC calculation procedure and guarantees more precise results.
Previously, Form GSTR-2B was used to automatically complete GSTR-3B Table 4A (1, 2, 3, 4, and 5), when ITCs were available. Positive ITC values were to be reported in the appropriate tables, while negative values were to be deemed ITC reversals and were reported in Table 4B(2).
Read also: All GSTR-3B Changes for Accurate Eligible ITC Calculation
The auto-populated values from Form GSTR-2B were also taken into account in Table 4B(2) for reversed ITC as positive values for all credit notes for whom ITC was available. If the result was negative, the credit may be regained if it had been reversed on a previous occasion. Form GSTR-2B was also used to input the positive values of all credit notes for which ITC was not available.
When negative values were included in the ITC, Table 4A(1,3,4,5), they were previously inverted and taken into account in Table 4B(2).
According to the most recent amendments, Table 4A(1,3,4,5), the net ITC (Input Tax Credit) available, including amendments (Invoices+Debit Notes-Credit Notes), are to be reported in the respective tables and Negative values, if any, caused by credit notes and downward revisions are to be reported only in respected tables.
Table 4D(2) [prohibted ITC under Section 16(4) & ITC restricted due to PoS rules] are now auto-populated from Form GSTR-2B. ITC not available, along with the revisions (Invoices+Debit Notes) are to be reported in this table.
