Issue in reporting GSTR 1 and GSTR 3B

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This query is : Resolved

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A taxpayer is seeking clarification on how to report and claim Input Tax Credit (ITC) for sales returns in their GSTR 3B. Specifically, they need to understand how to account for ITC that was wrongly utilised against sales from a previous period, which has now been returned. The discussion also touches upon the possibility of reporting negative values in Table 4D(2) of GSTR-3B for such scenarios.

Astaf Mansuri

Astaf Mansuri (Querist)
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03 May 2023 I have filed GST Return in form GSTR 3B and GSTR 1 Quarterly. My all outward supplies/ Sales were B2Cs only for all 3 quarters are say Rs. 50 Lacs. Same I have mentioned in outward supplies in GSTR3B timely. Now in Last quarter the sale returns of Rs. 15 Lacs out of earlier sales and the turnover of my last quarter is Only Rs. 5 lacs. Now my query is how to avail the ITC wrongly utilized for Rs. 10 Lacs (15 Lacs – 5 Lacs) sales of earlier period in last quarter in GSTR 3B?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 May 2023 In the event that the value of credit notes becomes higher than the sum of invoices and debit notes put together, the net ITC would become negative, and the taxpayers would be allowed to report negative values in Table 4A. Also, taxpayers can now enter negative values in Table 4D(2) of GSTR-3B.

Astaf Mansuri

Astaf Mansuri (Querist)
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03 May 2023 I think Table 4D(2) of GSTR 3B is for not reclaim of ITC in case of sales return ?
Please correct me if i am wrong.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 May 2023 I feel it's the right one.
If not suggest the right one I may be wrong.

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