GSTIN Introduces Negative Values in Table 4 of GSTR-3B

The Goods and Service Tax Network (GSTN) has introduced negative values in Table 4 of GSTR-3B.

The government has notified a few changes in Table 4 of Form GSTR-3B to enable taxpayers to report correct information regarding ITC availed, ITC reversals, and ineligible ITC. According to the changes, the net ITC is to be reported in Table 4(A), and the ITC reversal, if any, is to be reported in Table 4(B) of GSTR-3B.

Currently, in GSTR-3B, credit notes (CN) are being auto-populated in Table 4B(2) as ITC reverses. Because of the changes, the impact of credit notes must now be accounted for on a net-off basis only in Table 4(A) of GSTR-3B.

The changes were implemented in the GST Portal beginning in January 2023 and will be effective beginning with the January 2023 tax period.

The impact of the credit note and its amendments will now be auto-populated in GSTR-3B Table 4(A) rather than Table 4(B).

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.

Consequent updates and modifications in the advisory, messages, instructions, and help text in form GSTR-2B, without any structural changes in the form GSTR-2B summary or tables, have also been done in GSTR-2B.

The calculation logic of the Comparison Report has now been changed accordingly.

Before filing GSTR-3B, taxpayers should carefully read the instructions and help text in GSTR-2B and the system-generated GSTR-3B pdf.

Date: 17/02/2023

Click Here To Read The Notification