Top Stories Last Chance for ITC Reversal Amendments and RCM Corrections: Know GSTN’s Final Date To correct any mistakes in ITC reversal or RCM statement, November 30 2024 is the last date to do so By Kavi Priya – On November 30, 2024 10:52 am – 2 mins read The Goods and Services Tax Network ( GSTN ) set November 30, 2024, as the last date for businesses to correct any mistakes in their Input Tax Credit ( ITC ) Reversal and Reverse Charge Mechanism ( RCM ) statements.

This is an important opportunity for taxpayers to fix errors and avoid future filing issues. Who Needs to Use the RCM Liability & ITC Statement? The RCM Liability & ITC Statement applies to both monthly and quarterly GST filers: Monthly Filers: This statement is required starting from the August 2024 tax period. Quarterly Filers: The statement is effective from the July-September 2024 period. Taxpayers must use this statement for all RCM-related transactions from these periods onwards. Simplifying Section 148 for Tax Professionals – Enroll Now

To access the statement, log in to the GST Portal and Services → Ledger → RCM Liability/ITC Statement The statement provides a detailed summary of RCM liabilities declared and ITC claimed making it easier for businesses to verify and correct their records. How to Report the Opening Balance? The RCM Liability & ITC Statement allows taxpayers to report the opening balance of RCM ITC, which is important for correcting discrepancies from previous filings.

Here’s how it works: Positive Opening Balance: If you paid extra RCM liabilities (shown in Table 3.1(d) of GSTR-3B) but did not claim the corresponding ITC in Table 4A(2) or 4A(3), report this excess as a positive balance. Negative Opening Balance: If you claimed extra ITC in Table 4A(2) or 4A(3) without paying the corresponding RCM liability in Table 3.1(d), report this excess as a negative balance. Reclaiming Reversed ITC: If you reversed RCM ITC earlier (using Table 4B(2) of GSTR-3B), you can reclaim it in Table 4A(5) of GSTR-3B. However, this reclaimed ITC should not be included in the opening balance. Simplifying Section 148 for Tax Professionals – Enroll Now Deadlines Monthly Filers: Include RCM ITC up to the July 2024 return period.

Quarterly Filers: Include RCM ITC up to the April-June 2024 return period. The original deadline to declare opening balances was October 31, 2024, but amendments can still be made until November 30, 2024. Taxpayers are allowed up to three amendments during this period. How Does the Statement Work with GSTR-3B? The RCM Liability & ITC Statement links directly with GSTR-3B for accurate reporting and avoiding errors. It includes a validation mechanism that checks RCM liabilities and ITC claims. If discrepancies are found, an error message will block filing until the issue is corrected. For example, if ITC claimed in Table 4A(2) and Table 4A(3) exceeds the liability declared in Table 3.1(d) plus the RCM ledger’s closing balance, the system will display this message: Simplifying Section 148 for Tax Professionals – Enroll Now “Input Tax Credit taken in Table 4A(2) and 4A(3) exceeds the liabilities declared in Table 3.1(d) and the closing balance of the RCM liability ledger.

Kindly correct the values to proceed further.” This safeguard prevents taxpayers from accidentally claiming excess ITC and helping them avoid audits or penalties. What Should You Do Now? With the November 30, 2024, deadline approaching, taxpayers should: Review ITC reversals and RCM liabilities. Report accurate opening balances. Amend errors before the deadline to avoid locked claims or compliance problems.