For Reversal ITC

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This discussion clarifies how to manage Input Tax Credit (ITC) reversals in GSTR-3B, specifically when ITC related to residential flat construction was reversed. It explains that if ITC is reversed in Table 4(B)(2) of GSTR-3B, it must be reflected in the Electronic Credit Reversal and Re-claimed Statement. Even if you do not wish to reclaim the ITC and have permanently reversed it, you still need to ensure the statement accurately reflects this permanent reversal to maintain a zero balance and avoid mismatches.

jignesh sitapara

jignesh sitapara (Querist)
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06 July 2025 Dear Experts,
I had purchase ITC related construction of residential flats at the time of construction. Now same ITC was reversal through table 4 (B)(2) in GSTR-3B. Now what to the same ITC shown in "Electronic Credit Reversal and Re-claimed Statement."
Please assist me.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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12 August 2025 Electronic Credit Reversal and Re-claimed Statement:
If you reversed ITC in one tax period in Table 4(B)(2),
But in a later tax period, you are eligible to reclaim the ITC (e.g., if the flats are sold before completion or usage changes to business),
Then you can reclaim ITC in Table 4(D)(1) “ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax periods” of GSTR-3B.
Important points:
When you reverse ITC in Table 4(B)(2), the corresponding Electronic Credit Reversal and Re-claimed Statement needs to be furnished as per GST law.
Similarly, when reclaiming, furnish the Electronic Credit Reversal and Re-claimed Statement showing reclaim details.
This statement helps the GST portal match reversal and reclaim transactions to avoid mismatches in credit ledger.
Procedure:
Log in to the GST portal.
Go to the Electronic Credit Reversal and Re-claimed Statement utility.
Provide details of ITC reversed (invoice-wise or relevant details) in the reversal statement.
In subsequent period, if reclaiming, provide details of ITC reclaimed.
File this statement in the relevant tax periods.
Result:
This process ensures that ITC reversal and reclaim are properly accounted in GST returns.
It aligns your Books of Accounts ITC and GST credit ledger.

jignesh sitapara

jignesh sitapara (Querist)
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12 August 2025 Sir, I not to wish reclaim ITC, So, it's Permanently reverse, Then how to 0 balance in the same ledger

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