• Notification Date: 09-02-2023
• Notification No: N/A

GSTN modifies Auto-population of ITC in GSTR-3B

The Goods and Services Tax Network (GSTN) has given effect to some changes in the GST Portal. The auto-population of Input Tax Credit (ITC) in Form GSTR-3B has been changed. The new changes now auto-populate ITC in table 4 of GSTR-3B as the net of credit notes, instead of considering them as reversals as previously done. 

This alteration in logic will ensure the amounts auto-populated in table 6A of GSTR-9, “Total amount of ITC availed through GSTR-3B,” match with the GSTR-3B returns. To provide details of eligible ITC claimed, perform the following steps: 

1.Click the ‘4. Eligible ITC’ tile.  

2.The details of ITC claimed/ ITC reversed in table 4A(1,3,4 and 5) and 4B(2) are auto-drafted from relevant entries of FORM GSTR-2B. Other reversals would be required to be done by the taxpayer on his own.  

3.In case you want to add/ modify the auto-drafted details, you can add/ modify the details if required.  

4.Click the CONFIRM button. 

The new changes now auto-populate ITC in table 4 of GSTR-3B as the net of credit notes, instead of considering them as reversals as previously done. Previously, the credit notes were considered as reversals in the calculation of Input Tax Credit (ITC) in table 4 of the Goods and Services Tax Return 3B (GSTR-3B). However, with the latest changes, the process has been automated and the ITC is now auto-populated based on the net of credit notes. This means that the calculation of ITC now takes into account the credit notes as and automatically updates the final value in table 4, eliminating the need for manual calculations. This change simplifies the process of calculating ITC and ensures more accurate results. 

Earlier, GSTR-3B Table 4A (1,2,3,4 & 5) where an ITC was available were auto populated from Form GSTR-2B wherein the positive ITC values were to be reported in respective tables and negative values shall be considered as ITC reversal and were reported in Table 4B(2). 

Additionally, Table 4B(2), for reversed ITC had considered auto populated values from Form GSTR-2B as positive values of all credit notes, on which ITC was available. If the same was negative, then the credit was to be reclaimed subject to reversal of the same on an earlier instance. The positive values of all credit notes on which ITC was not available were also populated from the Form GSTR-2B. 

In previous instances, if there were negative values in ITC available, Table 4A(1,3,4,5), then such negative values were reversed and considered in Table 4B(2). With the latest amendments, the Table 4A (1,3,4,5), the net ITC available, inclusive of amendments (Invoices+Debit Notes-Credit Notes) are to be reported in the respective tables and negative values, if any due to credit notes and downward amendments are to be reported only in respected tables. The Table 4D(2) [ineligible ITC under Section 16(4) & ITC restricted due to PoS rules] are now auto-populated from Form GSTR-2B. ITC not available, including amendments (Invoices+Debit Notes) are to be reported in this table.