This new statement will be applicable from August 2024 for monthly filers and July-September 2024 for quarterly filers of GST
To ensure better accuracy and transparency in reporting Reverse Charge Mechanism (RCM) transactions, the Goods and Service Tax Portal has introduced a new feature called the RCM Liability/ITC Statement. This enhancement aims to streamline the correct reporting of RCM liability reflected in Table 3.1(d) of GSTR-3B and the corresponding Input Tax Credit (ITC) claimed in Table 4A(2) and 4A(3) of GSTR-3B for a specific return period.
Applicability: This new statement will be applicable from August 2024 for monthly filers and July-September 2024 for quarterly filers. You can easily access the RCM Liability/ITC Statement through the following navigation:
Path: Services >> Ledger >> RCM Liability/ITC Statement
Reporting Opening Balance in RCM ITC Statement
Taxpayers who need to report their RCM ITC Opening Balance can follow the steps below:
Steps:
- Login >> Report RCM ITC Opening Balance, or
- Services >> Ledger >> RCM Liability/ITC Statement >> Report RCM ITC Opening Balance
Guidelines for Reporting RCM ITC Opening Balance:
- Excess Paid RCM Liability:
If a taxpayer has paid excess RCM liability by declaring it in Table 3.1(d) of GSTR-3B but hasn’t claimed the corresponding ITC in Table 4(A)(2) or 4(A)(3) of GSTR-3B, they need to enter the excess liability as a positive value of RCM ITC in the opening balance of the RCM statement.
- Excess Claimed RCM ITC:
If a taxpayer has claimed excess RCM ITC in Table 4(A)(2) or 4(A)(3) of GSTR-3B but hasn’t paid the corresponding liability in Table 3.1(d) of GSTR-3B, they need to report the excess ITC claimed as a negative value in the opening balance of the RCM statement.
- Reclaiming Reversed RCM ITC:
If a taxpayer needs to reclaim RCM ITC that was previously reversed in Table 4(B)(2) of GSTR-3B, they can do so in Table 4A(5) of GSTR-3B, provided they are eligible. However, this ITC should not be reclaimed through Table 4(A)(2) or 4(A)(3) and does not need to be reported as an opening balance in the RCM ITC Statement.
Reconciliation for Opening Balance
- Monthly Filers: The opening balance should account for RCM ITC up until the July 2024 return period.
- Quarterly Filers: The opening balance should reflect RCM ITC up to Q1 of FY 2024-25, covering the period from April to June 2024.
Deadlines and Amendments for Declaring Opening Balance
- Opening Balance Deadline: Taxpayers have until 31st October 2024 to declare their RCM ITC opening balance.
- Amendment Opportunities: Taxpayers will have up to three opportunities to rectify any errors in their declared opening balance by 30th November 2024. Beyond this date, the amendment facility will be discontinued.
This new RCM Liability/ITC Statement simplifies the process of accurately tracking and reporting RCM transactions, making it easier for taxpayers to comply with the Tax requirements.
To Access the related GSTN Advisory No. 514 Click Here
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