About Electronic Credit Reversal and Re-claimed Statement.
This query is : Resolved
Quick Summary
20 March 2025
Last F.Y. 23-24 ITC was excess taken in amount which was reversed under Table 4(B)(2) F.Y.24-25 in 3B. Now this amount is being shown in Electronic Credit Reversal and Re-claimed Statement. Will this amount have to be shown in books of accounts in new ledger in this f.y.?
CA Rashmi Gandhi
(Expert)
23 March 2025
Yes, the excess ITC reversed in Table 4(B)(2) of GSTR-3B for FY 2024-25 and now appearing in the "Electronic Credit Reversal and Re-claimed Statement" may require accounting adjustments.
Accounting Treatment:
Creation of a Separate Ledger (Optional but Recommended): Since the amount is available for re-claim, it is advisable to maintain a separate ledger such as "ITC Reversal Pending Re-claim" to track the movement of ITC.
Reversal Entry (At the Time of Reversal in GSTR-3B - FY 2024-25):
Debit: ITC Expense (P&L) or a specific "ITC Reversal" ledger
Credit: Input Tax Credit Ledger (Asset)
This ensures that the reversal reduces the ITC balance in books.
Re-claim Entry (When Reclaimed in GSTR-3B - Same or Future FY):
Debit: Input Tax Credit Ledger (Asset)
Credit: ITC Reversal Pending Re-claim (If a separate ledger is maintained) or directly in ITC Ledger
Accounting Treatment:
Creation of a Separate Ledger (Optional but Recommended): Since the amount is available for re-claim, it is advisable to maintain a separate ledger such as "ITC Reversal Pending Re-claim" to track the movement of ITC.
Reversal Entry (At the Time of Reversal in GSTR-3B - FY 2024-25):
Debit: ITC Expense (P&L) or a specific "ITC Reversal" ledger
Credit: Input Tax Credit Ledger (Asset)
This ensures that the reversal reduces the ITC balance in books.
Re-claim Entry (When Reclaimed in GSTR-3B - Same or Future FY):
Debit: Input Tax Credit Ledger (Asset)
Credit: ITC Reversal Pending Re-claim (If a separate ledger is maintained) or directly in ITC Ledger
CA Rashmi Gandhi
(Expert)
23 March 2025
Yes, the excess ITC reversed in Table 4(B)(2) of GSTR-3B for FY 2024-25 and now appearing in the "Electronic Credit Reversal and Re-claimed Statement" may require accounting adjustments.
Accounting Treatment:
Creation of a Separate Ledger (Optional but Recommended): Since the amount is available for re-claim, it is advisable to maintain a separate ledger such as "ITC Reversal Pending Re-claim" to track the movement of ITC.
Reversal Entry (At the Time of Reversal in GSTR-3B - FY 2024-25):
Debit: ITC Expense (P&L) or a specific "ITC Reversal" ledger
Credit: Input Tax Credit Ledger (Asset)
This ensures that the reversal reduces the ITC balance in books.
Re-claim Entry (When Reclaimed in GSTR-3B - Same or Future FY):
Debit: Input Tax Credit Ledger (Asset)
Credit: ITC Reversal Pending Re-claim (If a separate ledger is maintained) or directly in ITC Ledger
Accounting Treatment:
Creation of a Separate Ledger (Optional but Recommended): Since the amount is available for re-claim, it is advisable to maintain a separate ledger such as "ITC Reversal Pending Re-claim" to track the movement of ITC.
Reversal Entry (At the Time of Reversal in GSTR-3B - FY 2024-25):
Debit: ITC Expense (P&L) or a specific "ITC Reversal" ledger
Credit: Input Tax Credit Ledger (Asset)
This ensures that the reversal reduces the ITC balance in books.
Re-claim Entry (When Reclaimed in GSTR-3B - Same or Future FY):
Debit: Input Tax Credit Ledger (Asset)
Credit: ITC Reversal Pending Re-claim (If a separate ledger is maintained) or directly in ITC Ledger
Message likes :
1 times
23 March 2025
But this has already been accessed claim, so why will it be claimed in the future
CA Rashmi Gandhi
(Expert)
23 March 2025
If the ITC was correctly reversed and should not be claimed again, it should be treated as an expense and not brought back into the ITC ledger.
25 March 2025
OK, But how to nil value of Electronic Credit Reversal and Re-claimed Statement Amount, display in the portal.
CA Rashmi Gandhi
(Expert)
25 March 2025
Show it in Table 4(D)(1) column "(ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax
period" of GSTR-3B of next month
period" of GSTR-3B of next month
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
