GSTR-3B is about to get a reverse twist!
Significant changes are coming to GSTR-3B related to the claiming of Input Tax Credit under reverse charge.
To prevent excess ITC claims, the taxpayers will be restricted from claiming ITC (RCM) that exceeds the tax liability paid under reverse charge + balance of the reverse charge ledger i.e. ITC (RCM) previously paid but not claimed.
Reverse charge ledger:
The opening balance for the start period will be zero. Taxpayers can submit the opening balance.
The closing balance of the previous return period will become the opening balance for the next period.
The closing balance cannot be negative once error mode is implemented.
