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Correct way to show ITC Reversal in GSTR-3B

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Amlan Ranjan Dutta

Business

103 Points Posted on 29 June 2021

Say, I have Input IGST available Rs.2000, out of which I have reversed Input IGST of Rs.800 as I have returned one item and the vendor had issued a Credit Note for the item, against which I have claimed a refund.

Now which way will be correct to display the same in GSTR-3B?

4. Eligible ITC
(A)(5) All other ITC : 1200 (IGST)
(B)(2) ITC Reversed : 0 (IGST)
(C) Net ITC Available : 1200 (IGST)

4. Eligible ITC
(A)(5) All other ITC : 2000 (IGST)
(B)(2) ITC Reversed : 800 (IGST)
(C) Net ITC Available : 1200 (IGST)

Replies (3)

Quick Summary

This discussion clarifies the correct way to display Input Tax Credit (ITC) reversals in your GSTR-3B filing. It addresses a scenario where an item return leads to a credit note and a refund. The recommended method (Option B) involves showing the full eligible ITC and then detailing the reversed amount, aligning with the GST portal's auto-population and aiding in ITC reconciliation.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 29 June 2021

Option B is better and in line with auto population algorithm of gst portal.

Imthias ahamed Kormath

635 Points Posted on 29 June 2021

Itc may be calim by an invoice or burden of payment of gst
If a purchase conducted by a R P as intra state,cgst ,sgst paid on same.Then , which goods moved by him to other state in India,cgst,sgst transferred fully as igst on same goods..