GSTN allowed Negative Values in Input Table of GSTR-3B from Jan 2023...

1. The Government vide Notification No. 14/2022 – Central Tax dated 05th July, 2022 has notified few changes in Table 4 of Form GSTR-3B for enabling taxpayers to report correct information regarding ITC availed, ITC reversal and ineligible ITC in Table 4 of GSTR-3B. According to the changes, the net ITC is to be reported in Table 4(A) and ITC reversal, if any, is to be reported in Table 4(B) of GSTR-3B.

2.Currently in GSTR-3B, credit note (CN) is being auto-populated in Table 4B(2), as ITC reversal. Now in view of the said changes, the impact of credit notes are also to be accounted on net off basis in Table 4(A) of GSTR-3B only. Accordingly following changes have been made in the GST Portal from January-2023 period onwards and shall be applicable from tax period - January 2023’ onwards.

a. The impact of credit note & their amendments will now be auto-populated in Table 4(A) instead of Table 4(B) of GSTR-3B . In case the value of credit notes becomes higher than sum of invoices and debit notes put together, then the net ITC would become negative and the taxpayers will be allowed to report negative values in Table-4A. Also, taxpayers can now enter negative values in Table 4D(2) of GSTR-3B.

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

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

3.The taxpayers are advised to go through instructions/help text carefully in GSTR-2B & System Generated GSTR-3B pdf before filing GSTR-3B.

GSTN has a change in the mechanism of auto-populating ITC effective Jan 2023.

Let's understand the Change?

Now GSTN will auto-populate ITC (net of credit notes) in Table 4(A) of GSTR-3B. That means, Net ITC available including amendments (Invoices + Debit Notes - Credit Notes) shall be auto-populated in Table 4(A). The said change is effective from Jan 2023. 

However earlier credit notes were being auto-populated separately as reversals in Table 4(B)(2). The same were not being adjusted from Table 4(A).

The said change has been done to keep in mind the numbers to be auto-populated in Table of 6A of GSTR-9 and reconciliation b/w GSTR-9 and GSTR-3B.

Old Method of Auto Population
[upto Dec 2022]

New Method of Auto Population
[from Jan 2023]

☑ Monthly | GSTR-11

GSTR-11 for the m/o Mar 2024 (Statement of inward supplies by persons having Unique Identification Number (UIN)).

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GSTR-4 (Annual Return) for FY 2023-24 by Composite Taxpayer (Rule 62).

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Last date for opt-in / opt-out QRMP Scheme for quarter Apr - June 2024 (Rule 61A)