Skip to content

India Financial Consultancy

  • Home
  • About Us
  • Media
    • Publications
    • Press Releases
    • Newsletters
    • Archives
  • Contact Us
September 18, 2023 / GST Compliance

Advisory on Reporting of ITC Reversal Opening Balance

Re-Availment Of Input Tax Credit Reversed

New Goods and Services Tax Advisory on Reporting of Input Tax Credit Reversal Opening Balance

Under the GST Mechanism owner of businesses origination are allowed to claim ITC on GST paid on its purchases of services & goods. But, In such case few conditions & situations where Input Tax credit required to be reduced & reversed. One such situation is when a business has an opening balance of Input Tax credit reversal from the Last financial Year.

Few key points to consider regarding reporting of Input Tax credit reversal opening balance & following advisory carefully before proceeding ahead for reporting Input Tax Credit Reversal opening balance:

  • Calculation of Opening Balance: The opening balance of Input Tax Credit reversal is typically calculated at the beginning of a financial year. It represents the amount of Input Tax Credit that needs to be reversed due to various reasons, non-business use of goods or services, such as the sale of exempt supplies,
  • Reporting in Goods and Services Tax Returns: owner of businesses origination are needed to report opening balance of Input Tax Credit reversal in their Goods and Services Tax returns for the relevant financial year. This balance is usually reported in GSTR-2 or GSTR-3, depending on the specific reporting requirements of the tax authority.
  • Adjustment Entries: Businesses should make the necessary adjustment entries in their accounting records to account for the Input Tax Credit reversal opening balance. These adjustments ensure that the correct amount of Input Tax Credit is available for offsetting against Goods and Services Tax liability during the financial year.
  • Compliance with Goods and Services Tax Laws: It’s crucial for owner of businesses origination to comply with the Goods and Services Tax laws and regulations of their respective countries or regions. Non-compliance with Goods and Services Tax Rules, including incorrect reporting of ITC reversal, can lead to penalties and legal consequences.
  • Advice from Tax Professionals: owner of businesses origination should get advice from tax experts or consultants who are familiar with GST requirements in order to report ITC reversal opening balance accurately and to comply with GST laws.

Other Point to be taken care on reporting of Input Tax Credit Reversal Opening Balance.

Reporting of Input Tax Credit Reversal Opening Balance.

  • Goods and Services Taxpayers are permitted to use this facility to report their Input Tax Credit Reversal Balance that has not been re-claimed.
  • GST Taxpayer is advised to report solely those reclaimable Input Tax Credit reversal balances that meet the legal criteria for re-claim and have not been previously claimed by the Goods and Services taxpayers.
  • Goods and Services Taxpayers may report their opening balance until 30th Nov 2023. After 30th Nov 2023, the option to report the opening balance will be removed, and it will be assumed that the taxpayer has no Input Tax Credit Reversal Balance to report.
  • GST Taxpayers may amend their opening balance until 31st Dec 2023. Any pending reported balance after this date will be considered final & Same cannot be further amended. Updated this value (After 31st Dec 2023) shall be frozen with no further attempts provided to Goods and Services taxpayers to amend their Input Tax Credit Reversal Balance & This Goods and Services Input Tax Credit
  • Goods and Services Taxpayer should make appropriate Due diligence while amending or reporting the Input Tax Credit reversal opening balance, because as per GST Portal only 3-time amendment is allowed.
  • Goods and Services opening balance that has been reported or amended by the Goods and Services taxpayers shall be credited to the “Goods and Services Electronic Credit Reversal & Re-claimed Statement”. This statement will be used to validate the Goods and Services taxpayer’s Input Tax Credit Re­claimed amount in Table 40(5) & 4D(1) of form GSTR-3B.

Key GST Note: Goods and Services Taxpayers can only utilize such kind of functionality in case Goods and Services  Taxpayers have an Input Tax Credit reversal balance that is eligible for re-claim Goods and Services Tax but has not yet been re-claimed Goods and Services Tax.

To get most accurate & up-to-date details on specific advisory related to reporting of Input Tax Credit reversal opening balance, I recommend visiting the official GST web site portal of India  tax authority or consulting with a tax professional with us for the latest Goods and Services  updates in your region.

**********************************************************

If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.

Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.

Post navigation

Previous Post:

All About National Savings Certificate (NSC) & PPF

Next Post:

Discrepancy in GST E-way Bill: No GST Penalty will be Levey

Enquire Now

    About IFCCL

    India Financial Consultancy Corporation Pvt. Ltd. is one of the leading providers of financial and business advisory, internal audit, statutory audit, corporate governance, and tax and regulatory services. With a global approach to service delivery, we are responds to clients' complex business challenges with a broad range of services across industry sectors and national boundaries. The Company has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting companies and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Assurance, Risk, Taxation, & Business advisory services to various clients and their stakeholders...
    Read More...

    Contact Info

    P-6/90 Connaught Circus,
    Connaught Place,
    New Delhi - 110001, India

    Landline: 011-43520194
    Email: singh@caindelhiindia.com

    RCS Recent Posts

    • Cash Deposits under Presumptive Taxation-Attract Sec 68/69A? June 17, 2025
    • New IBBI Forms LIQ 1–4 in Liquidation Reporting June 17, 2025
    • Overview on Social Engineering- Cyber Jaagrookta Diwas June 17, 2025
    • GSTN: Non-editability of Auto-Populated Liability in GSTR-3B June 16, 2025
    • HSN Code Requirements Based on Annual Turnover June 15, 2025
    • Key deadlines of Compliance Calendar For FY 2025–26 June 15, 2025
    • Key Changes for taxpayers filing under Old Tax Regime June 14, 2025
    • Grievance hand Mechanism for Processing of GST Registration June 3, 2025

    Archives

    • 2025 (114)
    • 2024 (154)
    • 2023 (113)
    • 2022 (121)
    • 2021 (92)
    • 2020 (16)
    • 2017 (5)
    • 2016 (181)
    • 2015 (180)
    • 2014 (1)

    Categories

    • Accounting Services (25)
    • Audit (40)
    • Business Consultancy (31)
    • Business Registration Services (14)
    • Business Services (11)
    • Business Set Up in India (30)
    • Business Set Up Outside India (5)
    • Business Strategy (37)
    • CA (4)
    • CBDT (29)
    • Certification (1)
    • CFO Services (10)
    • Chartered Accountant (31)
    • Company Law Compliances (232)
    • Company Registration (9)
    • compliance calendar (9)
    • CORPORATE AND PROFESSIONAL UPDATE (7)
    • Corporate Updates (15)
    • Cryptocurrency (15)
    • DGFT (3)
    • Digital Signature Certificate (1)
    • Direct Tax (92)
      • ITR (23)
    • DTAA (14)
    • FCRA (7)
    • FDI (9)
    • Fixed Asset Register Related Services (4)
    • Foreign Exchange Management Act (59)
    • GST (120)
    • GST Compliance (61)
    • GST Registration (14)
    • IBC (33)
    • IEC (4)
    • INCOME TAX (310)
    • Indirect Tax (218)
    • Insolvency and Bankruptcy Code (1)
    • Intellectual Property Rights (5)
    • Knowledge Management (60)
    • NBFC (5)
    • NGO (14)
    • NRI (24)
    • Others (10)
    • PAN TAN Aadhar (1)
    • Project Finance (22)
    • RBI Consultancy (12)
    • SEBI Compliances (38)
    • SEZ (2)
    • Social Auditor (1)
    • TDS (40)
    • Transfer Pricing (4)
    • Uncategorized (87)
    • Virtual Office Facility (4)
    • XBRL Data Conversion Services (2)

    Follow Us On

    Follow us on Facebook Follow us on Twitter Join us on Linkedin Blogger Google Plus

    © 2025 India Financial Consultancy