About Electronic Credit Reversal and Re-claimed Statement.
This query is : Resolved
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.?
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
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
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.
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
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