Format of GSTR 3B - Table 4

Yash Bhadiyadra , Last updated: 09 July 2022
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Amount of Ineligible/Blocked Input Tax Credit and Reversal thereof in Return FORM GSTR-3B

In this article, I am going to discuss only that part of the circular which is related to Table 4 of GSTR 3B.

Main object of the Circular 170/02/2022 dated 06-07-2022 (Specifically for GSTR 3B) is to guide for presentation of eligible, ineligible, reversal and reclaiming of reversed ITC in a proper and uniform manner nationally.

Format of GSTR 3B Table 4, is given below because various references will be helpful in understanding the circular and article.

GSTR 3B - Table 4. Eligible ITC

Details	IGST	CGST	SGST	Cess
A. Eligible ITC
Import of Goods
Import of Service
Inward Supplier liable to Reverse Charge (Other than 1 & 2 above)
Inward Supplies from ISD
All other ITC
B. ITC Reversed
As per Rules 42 & 43 of CGST Rules
Others
C. Net ITC Available (A - B)
D. Ineligible ITC
As per Section 17(5)
Others

Importantly, registered taxpayer is required to take Input Tax Credit (ITC) in Table 4(A) of GSTR 3B as per Part A of "ITC Available" Sheet of GSTR 2B. (As per me, RCM amount may be modified because all RCM data can not be there in GSTR 2B). All adjustments (for e.g. relating to ineligible ITC, invoice is received but goods are in transit, payment is not done within 180 days, etc.) should be done as mentioned in the circular and not by amending the amount directly in Table 4A of GSTR 3B.

Let us start. This will, in short and simple manner, guide us on which adjustment is to be done and where in table 4.

Table No of GSTR 3B	Particulars of Table	Adjustments to be made.
Table4B: ITC Reversed
Table No. 4B(1)	As per Rules 42 & 43 of CGST Rules	Rule 42 - Manner of determination of input tax credit in respect of inputs and input service and reversal thereof. Rule 43 - Maner of determination of input tax credit in respect of capital goods and reversal thereof in certain cases. Rule 38 - Claim of Credit by a banking company or Financial institution. Section 17(5) - Blocked Credit Note: Any ITC which is not reclaimable will be reversed here.
Table No. 4B(2)	Others	Not permanent in nature AND which can be reclaimed in future, subject to fulfillment of specific condition will be reversed here. Such as, Rule 37 - Reversal of input tax credit in the case of Non-Payment of consideration (within 180 Days) Section 16(2)(b) - Invoice/DN is received but Goods or services is/are not received Section 16(2)(c) - Tax has been actually paid to Government. Reversal of any ITC availed in Table4(A) in previous Tax periods because of some inadvertent mistake. Note: Such ITC (i to iv) can be reclaimed in Table 4(A)(5) - "All other ITC" on fulfillment of necessary conditions All such reclaimed ITC shall also be shown in Table 4(D)(1).

Table 4D: Ineligible ITC

Table No. 4D(1)

As per Section 17(5)

All ITC which is reclaimed on fulfillment of specified condition (which was reversed in Table 4(B)(2)) shall be shown here.

It is clarified that the reversal of ITC of ineligible credit under section 17(5) or any other provision of the CGST Act and Rules thereunder is required to be made under Table 4(B) and not under Table4(D) of Form GSTR 3B. (This para, in the entire circular, seems illogical to me. In Table 4(D)(1) of the Form GSTR 3B, it is mentioned that ITC ineligible under Section 17(5) is to be mentioned here and this circular denies to mention the same. Maybe in upcoming days, there will be some modification in GSTR 3B format)

Table No. 4D(2)

Others

ITC not available u/s 16(4) for limitation of time period.
Where recipient state and place of supply state are different.

Note:

Data for Table 4D(2) should be taken from "ITC Not Available" Sheet of GSTR 2B.
Amount mentioned in Table 4D, will neither be added nor deducted from Net ITC.
This 2 i.e (a. & b.) Reporting is Optional. Word used in the Circular is "may be reported", but I prefer to disclose the same.

Link for Circular: Click Here

Disclaimer: This is just for better and easy understanding, before coming to any conclusion of any confusion please read the notification with rules and act and consult to your tax consultant.