Introduction of Electronic Credit Reversal and Re-claimed statement on the GST Common Portal; All You Need To Know

The GSTN has issued an advisory on the introduction of Electronic Credit Reversal and Re-claimed statement on the GST Common Portal.
The government has notified changes in Form GSTR-3B to enable taxpayers to report correct information regarding ITC availed, reversal, re-claimed, and ineligible ITC.
A new ledger named Electronic Credit and Re-claimed Statement is being introduced on the GST portal to help taxpayers track their ITC that has been reversed and subsequently re-claimed for each return period.
Taxpayers can report their cumulative ITC reversal as an opening balance until November 30, 2023, and can amend it three times until that date.
The portal will maintain a record of reversal and re-claimed amounts on a return period basis.
A validation mechanism is incorporated into the GSTR-3B form to trigger a warning message if a taxpayer attempts to re-claim excess ITC than the available ITC reversal balance in the statement.
The warning message will commence appearing from the filing period covering August 2023 for monthly taxpayers and July to September 2023 for quarterly taxpayers.