The Goods and Service Tax Network (GSTN) on September 17, 2024, issued a notification regarding the Reopening of Reporting ITC Reversal Opening Balance.
A new ledger, the "Electronic Credit Reversal and Re-claimed Statement," was introduced on the GST portal from August 2023 for monthly taxpayers and from July-September 2023 for quarterly taxpayers. This ledger is aimed at helping taxpayers accurately report Input Tax Credit (ITC) reversals and reclaims while avoiding clerical errors. Taxpayers were initially allowed to report cumulative ITC reversals as an opening balance in this ledger.
The due dates for reporting these opening balances have now been extended. Taxpayers can report their cumulative ITC reversal from September 15, 2024, to October 31, 2024, with amendments allowed until November 30, 2024. Monthly taxpayers should report ITC reversals made up to July 2023, while quarterly taxpayers should do so for the first quarter of FY 2023-24. Taxpayers are advised to ensure accuracy during this extended period as the system will soon restrict the re-claim of ITC beyond the reversed amount available in the ledger.
