GSTN Issues Advisory on New RCM Liability/ITC Statement
GSTN Issues Advisory on New RCM Liability/ITC Statement**
By: Admin | August 23, 2024 | Categories: GST Portal Updates | Important News | 4 Min Read
The Goods and Services Tax Network (GSTN) has released Advisory No. 514 on August 23, 2024, detailing the introduction of a new “RCM Liability/ITC Statement” on the GST Portal. This new statement is designed to assist taxpayers in accurately reporting Reverse Charge Mechanism (RCM) transactions, ensuring enhanced transparency and compliance.
Key Features of the RCM Liability/ITC Statement:
- Introduction Date: The RCM Liability/ITC Statement will be applicable starting from the August 2024 tax period for monthly filers and the July-September 2024 quarter for quarterly filers.
- Purpose: The statement captures the RCM liability reported in Table 3.1(d) of GSTR-3B and its corresponding Input Tax Credit (ITC) claimed in Table 4A(2) and 4A(3) of GSTR-3B, facilitating better accuracy in RCM transactions.
- Accessing the Statement: Taxpayers can view and manage the statement via Services > Ledger > RCM Liability/ITC Statement on the GST Portal.
Reporting RCM ITC Opening Balance:
Taxpayers can report the RCM ITC opening balance through the following steps:
- Login to GST Portal
- Navigate to Report RCM ITC Opening Balance or Services > Ledger > RCM Liability/ITC Statement > Report RCM ITC Opening Balance.
Guidelines for Reporting:
- Excess Paid Liability: If excess RCM liabilities have been paid but not availed as ITC, taxpayers should report a positive value of this excess as the RCM ITC opening balance.
- Excess Claimed ITC: If excess ITC has been claimed but not paid as RCM liability, a negative value should be reported as the opening balance.
- Reclaiming RCM ITC: Reclaimed ITC that was reversed in previous periods should be reported in Table 4A(5) of GSTR-3B and not in Table 4A(2) or 4A(3).
Deadlines and Amendments:
- Declaration Deadline: Taxpayers must declare the RCM ITC opening balance by October 31, 2024.
- Amendments: Errors in the opening balance can be rectified up to three times, with a final deadline for amendments set for November 30, 2024. No changes can be made after this date.
Hashtags:
GSTUpdate #RCMLiability #ITCStatement #TaxCompliance #GSTPortal #IndiaTax #GSTN #ReverseChargeMechanism
By: Admin | August 23, 2024 | Categories: GST Portal Updates | Important News | 4 Min Read
The Goods and Services Tax Network (GSTN) has released Advisory No. 514 on August 23, 2024, detailing the introduction of a new “RCM Liability/ITC Statement” on the GST Portal. This new statement is designed to assist taxpayers in accurately reporting Reverse Charge Mechanism (RCM) transactions, ensuring enhanced transparency and compliance.
Key Features of the RCM Liability/ITC Statement:
- Introduction Date: The RCM Liability/ITC Statement will be applicable starting from the August 2024 tax period for monthly filers and the July-September 2024 quarter for quarterly filers.
- Purpose: The statement captures the RCM liability reported in Table 3.1(d) of GSTR-3B and its corresponding Input Tax Credit (ITC) claimed in Table 4A(2) and 4A(3) of GSTR-3B, facilitating better accuracy in RCM transactions.
- Accessing the Statement: Taxpayers can view and manage the statement via Services > Ledger > RCM Liability/ITC Statement on the GST Portal.
Reporting RCM ITC Opening Balance:
Taxpayers can report the RCM ITC opening balance through the following steps:
- Login to GST Portal
- Navigate to Report RCM ITC Opening Balance or Services > Ledger > RCM Liability/ITC Statement > Report RCM ITC Opening Balance.
Guidelines for Reporting:
- Excess Paid Liability: If excess RCM liabilities have been paid but not availed as ITC, taxpayers should report a positive value of this excess as the RCM ITC opening balance.
- Excess Claimed ITC: If excess ITC has been claimed but not paid as RCM liability, a negative value should be reported as the opening balance.
- Reclaiming RCM ITC: Reclaimed ITC that was reversed in previous periods should be reported in Table 4A(5) of GSTR-3B and not in Table 4A(2) or 4A(3).
Deadlines and Amendments:
- Declaration Deadline: Taxpayers must declare the RCM ITC opening balance by October 31, 2024.
- Amendments: Errors in the opening balance can be rectified up to three times, with a final deadline for amendments set for November 30, 2024. No changes can be made after this date.
GSTUpdate #RCMLiability #ITCStatement #TaxCompliance #GSTPortal #IndiaTax #GSTN #ReverseChargeMechanism
https://aaermlawassociates.com/gstn-issues-advisory-on-new-rcm-liability-itc-statement/
