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Introduction
of RCM Liability/ITC Statement (August 23rd, 2024)
The GST Portal has introduced a new feature called the
"RCM Liability/ITC Statement" to help taxpayers correctly report
transactions under the Reverse Charge Mechanism (RCM). This statement is
designed to improve accuracy and transparency by matching the RCM liability
shown in Table 3.1(d) of GSTR-3B with the Input Tax Credit (ITC) claimed in
Table 4A(2) and 4A(3) for each return period.
Who Needs to Use It?
- Monthly
filers: The statement will be applicable
from August 2024.
- Quarterly
filers: It will be applicable for the
July-September 2024 period.
How to Access the Statement:
You can find the RCM Liability/ITC Statement by navigating to:
Services >> Ledger >> RCM Liability/ITC Statement on the GST
Portal.
Reporting Opening Balance in RCM ITC
Statement
Taxpayers can report their opening balance of RCM ITC
by following this navigation:
Login >> Report RCM ITC Opening Balance
Or go to Services >> Ledger >> RCM Liability/ITC Statement
>> Report RCM ITC Opening Balance.
Key Points to Remember:
1.
Excess RCM Liability Paid:
o If
you paid more RCM liability than required and did not claim the corresponding
ITC, report the excess amount as a positive opening balance.
2.
Excess ITC Claimed:
o If
you claimed more ITC than the RCM liability paid, report the excess amount as a
negative opening balance.
3.
Reclaiming Reversed RCM ITC:
o If
you need to reclaim RCM ITC that was reversed in earlier periods, do so in
Table 4A(5) of GSTR-3B, not through Tables 4A(2) or 4A(3). This does not need
to be reported as an opening balance.
Important Dates:
- For
Monthly Filers:
Report the opening balance considering RCM ITC up to the July 2024 return
period.
- For
Quarterly Filers:
Report the opening balance up to Q1 of FY 2024-25 (April-June 2024).
- Deadline
to Declare Opening Balance:
You have until October 31, 2024 to declare your opening balance.
- Amendments:
You can correct any errors in your opening balance until November 30,
2024. Three chances are provided for these corrections. After this
date, no further amendments will be allowed.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
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