The government has been striving to ease the overall GST framework for India Inc., by amending the reporting methodology to make GST a “Good and Simple Tax” so that only non-compliant assesses are questioned or held liable and the diligent ones are not affected.
One such change has been recently notified by the government vide Notification No. 14/2022 – Central Tax dated July 5, 2022, in Table 4 of GSTR 3B, meant for Input Tax Credit (ITC) related information. The said changes have been made available on the GST portal since September 1, 2022. In brief, the government has majorly changed the following two aspects :
- Mandatory reporting of reversals on account of ineligible ITC in Table 4(B)(1) which are permanent in nature and are not reclaimable, for e.g., blocked credits under section 17(5), reversals under Rule 42 & 43 on account of exempt supplies, etc.
- Reporting of ITC reversals not permanent in nature in Table 4(B)(2) and reclaim the same in Table 4(A)(5) with specific reporting of the said information in Table 4(D)(1) as well [this is a new Table inserted now]. This will include ITC reversals on account of non-payment to vendor within 180 days, reversal of ITC appearing in GSTR 2B but not accounted in books, etc.
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