Quick Summary
Over the last two years, GSTN has gradually moved from advisories and warnings to system-enforced compliance, especially in the area of Input Tax Credit (ITC). The latest Advisory FAQs (Dec 2025) clearly signal that excess ITC claims will no longer be tolerated by the system. 1. Electronic Credit
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
The ITC Reclaim Ledger tracks ITC that was temporarily reversed and subsequently reclaimed. It ensures that the reclaimed amount does not exceed the available balance in the ledger plus any current period reversals, preventing negative closing balances.
If the ITC Reclaim Ledger has a negative closing balance, GSTR-3B filing will be blocked. You will need to reverse the excess ITC claimed, which may result in a cash liability if no ITC is available.
The RCM Ledger aligns the Reverse Charge Mechanism (RCM) liability paid with the RCM ITC claimed. It ensures that the RCM ITC claimed does not exceed the RCM tax paid plus the closing RCM ledger balance.
A negative RCM balance will block GSTR-3B filing unless additional RCM tax is paid or the ITC claim is reduced. RCM ITC previously reversed must now be reclaimed via Table 4(A)(5), not 4(A)(2)/(3).
GST compliance is moving from warning-based advisories to system-driven discipline with ledger-based validations. Professionals must now reconcile ledgers diligently, as past excess claims can lead to filing blocks, making ledger health as crucial as eligibility.
CAclubindia
