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TaxReply India Pvt Ltd

GST Reversal / Adjustment Calculator (in GSTR-3B)


GSTR-2B vs. GSTR-3B


(Mandatory as per CBIC Guidelines. Follow carefully to avoid notices.)

Table 1 - Enter ITC auto-populated from GSTR-2B

Details * IGST CGST SGST
Import of Goods
Import of Services
Inward Supplies under RCM
Inward Supplies from ISD
All other ITC
* W.e.f. Jan 2023, GSTN will auto-populate ITC (net of credit notes) in Table 4A of GSTR-3B. Earlier credit notes were being auto-populated separately as reversal in Table 4(B).

Table 2 - Enter Adjustments required to be done in GSTR-3B.

S.No. Adjustment IGST CGST SGST

ITC reflecting in GSTR-2B and auto-populated in GSTR-3B by GSTN.

[This needs to be reversed in Table 4(B) of GSTR-3B]
1

Permanent Reversal: 4(B)(1)


- reversal under rule 38,
- reversal under rule 42,
- reversal under rule 43,
- ineligible credit u/s 17(5).
2

Temporary Reversal: 4(B)(2)


- reversal under rule 37,
- ineligible credit u/s 16(2)(b),
- ineligible credit u/s 16(2)(c),
- Any other reevrsal.

ITC reflecting in GSTR-2B but not auto-populated in GSTR-3B by GSTN.

[No reversal required in GSTR-3B, as the same has not been auto-populated. To be shown only for reporting purpose in table 4(D)(2)]
3

Ineligible ITC: 4(D)(2)

- on account of limitation of time period u/s 16(4),

- where the recipient of intra-State supply is located in different State than that of place of supply.

Other ITC to be claimed by TaxPayer (not reflecting in GSTR-2B).

4 ITC on Import of Goods (Subject to BE fetched by GSTN from ICEGATE).
5 ITC on Import of Services.
6 ITC on Inward Supplies under RCM e.g. RCM paid on advocate fee, freight etc.
7 ITC reversed in previous months on temporary basis. (to be re-claimed in current month)

Correct Reporting in Table 4 of GSTR-3B

Table 4 (GSTR-3B)
S.No. Details IGST CGST SGST

4. Eligible ITC

(A) ITC Available (whether in full or part)
1 Import of Goods 0 + 0 4 0 + 0 4 0 + 0 4
2 Import of Services 0 + 0 5 0 + 0 5 0 + 0 5
3 Inward Supplies liable to Reverse Charge (other than 1 & 2 above) 0 + 0 6 0 + 0 6 0 + 0 6
4 Inward Supplies from ISD 0 0 0
5 All other ITC 0 + 0 7 0 + 0 7 0 + 0 7

(B) ITC Reversed
1 As per rules 38,42 & 43 of CGST Rules and section 17(5) 0 1 0 1 0 1
2 Others 0 2 0 2 0 2

(C) Net ITC Available (A - B)

(to be credited to Electronic Credit Ledger) 		0 0 0

(D) Ineligible ITC (For reporting only)
1 ITC reclaimed which was reversed under Table 4(B)(2) in earlier tax period 0 7 0 7 0 7
2 Ineligible ITC under section 16(4) & ITC restricted due to PoS rules 0 3 0 3 0 3

Notes:

Permanent Reversal [Table 4(B)(1)]:
⇨ Rule 38 - Reversal of credit by a banking company or a financial institution,

⇨ Rule 42 - Reversal of credit on input or input services, if the same is used in supply of exempted goods or services or used for non-business purposes,

⇨ Rule 43 - Reversal of credit on capital goods, if the same is used in supply of exempted goods or services or used for non-business purposes, or

⇨ Ineligible credit u/s 17(5) of the CGST Act - ITC on motor vehicles, vessels, aircraft, food & beverages, club membership, health & fitness center, leave travel benefits etc.

Temporary Reversal [Table 4(B)(2)]:
⇨ Rule 37 - Reversal of credit due to non-payment of consideration to supplier within 180 days,

⇨ Section 16(2)(b) - Reversal of credit on account of non-receipt of goods or services in the same tax period in which the invoice has been received,

⇨ Section 16(2)(c) - Reversal of credit on account of non-payment of tax by the supplier.

⇨ Any Other Reversal - This column may also be used for any other reversal of ITC claimed by mistake in Past.







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