Negative Balance in RCM Liability
This query is : Resolved
Quick Summary
30 September 2025
Respected Sir,
We have paid RCM for the FY 2023-24 in January'2025 through DRC03, and claim ITC in the GSTR3B January'2025.
Now GST portal has showing Ledger balance of RCM Liability/ITC Statement in negative value due to the differences of RCM liability less than the RCM ITC taken in January'25 return period.
Please suggest how to difference can zero on GSTR portal.
We have paid RCM for the FY 2023-24 in January'2025 through DRC03, and claim ITC in the GSTR3B January'2025.
Now GST portal has showing Ledger balance of RCM Liability/ITC Statement in negative value due to the differences of RCM liability less than the RCM ITC taken in January'25 return period.
Please suggest how to difference can zero on GSTR portal.
30 September 2025
Since the RCM payment for FY 2023-24 was made via DRC-03, it did not get recorded in Table 3.1(d) of any GSTR-3B, but the corresponding ITC was claimed in Table 4(A)(3) of the January 2025 GSTR-3B. This leads to an excess ITC claim compared to the declared liability in that period, resulting in a negative value in the new RCM Statement/Ledger.
The negative balance on the portal is showing because the RCM ITC Claimed in the January 2025 return was greater than the RCM Liability declared in the corresponding month's GSTR-3B (Table 3.1(d)).
The negative balance on the portal is showing because the RCM ITC Claimed in the January 2025 return was greater than the RCM Liability declared in the corresponding month's GSTR-3B (Table 3.1(d)).
30 September 2025
Report the Difference in the "RCM Liability/ITC Statement"
The GST portal has introduced a new feature called the RCM Liability/ITC Statement (or sometimes referred to as the RCM ITC Reclaimable Ledger). This statement is specifically designed to reconcile such past discrepancies where RCM liability and ITC were not reported/claimed in the same tax period.
The GST portal has introduced a new feature called the RCM Liability/ITC Statement (or sometimes referred to as the RCM ITC Reclaimable Ledger). This statement is specifically designed to reconcile such past discrepancies where RCM liability and ITC were not reported/claimed in the same tax period.
30 September 2025
You need to follow the official advisory/steps to declare this historical mismatch as an Opening Balance:
Navigate to the Statement: Log in to the GST Portal and go to Services > Ledgers > RCM Liability/ITC Statement.
Report Opening Balance: You will find an option to Report RCM ITC Opening Balance.
Enter the Negative Value: Since your ITC claimed was effectively higher than the liability declared in GSTR-3B (because the liability was paid via DRC-03 and not 3.1(d)), you need to report the difference as a Negative value in the RCM ITC Opening Balance.
Formula: Opening Balance = (RCM ITC Claimed in GSTR-3B till a specified date) - (RCM Liability declared in GSTR-3B till a specified date).
In your case, the ITC was claimed in Jan'25 GSTR-3B, but the corresponding liability for FY 2023-24 was never declared in 3.1(d) of any return, as you used DRC-03. Therefore, the portal's system considers the entire ITC claimed as 'excessive' against the GSTR-3B records, resulting in the negative balance.
By reporting the equivalent amount of the negative balance (which represents your actual paid RCM liability for which you claimed ITC) as a Negative Opening Balance, you will align the RCM Statement with your actual records.
Submission: Submit the RCM ITC Opening Balance. This should offset the negative balance currently appearing and bring the statement's balance to zero or the correct figure.
Navigate to the Statement: Log in to the GST Portal and go to Services > Ledgers > RCM Liability/ITC Statement.
Report Opening Balance: You will find an option to Report RCM ITC Opening Balance.
Enter the Negative Value: Since your ITC claimed was effectively higher than the liability declared in GSTR-3B (because the liability was paid via DRC-03 and not 3.1(d)), you need to report the difference as a Negative value in the RCM ITC Opening Balance.
Formula: Opening Balance = (RCM ITC Claimed in GSTR-3B till a specified date) - (RCM Liability declared in GSTR-3B till a specified date).
In your case, the ITC was claimed in Jan'25 GSTR-3B, but the corresponding liability for FY 2023-24 was never declared in 3.1(d) of any return, as you used DRC-03. Therefore, the portal's system considers the entire ITC claimed as 'excessive' against the GSTR-3B records, resulting in the negative balance.
By reporting the equivalent amount of the negative balance (which represents your actual paid RCM liability for which you claimed ITC) as a Negative Opening Balance, you will align the RCM Statement with your actual records.
Submission: Submit the RCM ITC Opening Balance. This should offset the negative balance currently appearing and bring the statement's balance to zero or the correct figure.
30 September 2025
The advisory for the RCM Liability/ITC Statement usually specifies a cutoff date for which the opening balance should be calculated (e.g., till the July 2024 return period). Even though your transaction is post-FY 2023-24, the negative figure in the new ledger is the portal's way of tracking this mismatch. Reporting the difference as a Negative Opening Balance is the standard mechanism provided by the GSTN to nullify this type of historical or timing-related mismatch in the new statement.
This amendment facility may have specific deadlines, typically discontinued after November 30 of the concerned financial year; check the portal for current deadlines.
This amendment facility may have specific deadlines, typically discontinued after November 30 of the concerned financial year; check the portal for current deadlines.
30 September 2025
Good luck....
03 October 2025
Lots of Thanks for sharing suggestion Dhirajlal sir !!!
Message likes :
1 times
03 October 2025
You are welcome.
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
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Under construction property in ITR
- Not able to file ITR
- Building tax payment deduction in rental Income
- Reporting of STCG on Property in ITR
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
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
