GST Network new ledger for ITC reversal and reclamation: How it works? Steps that taxpayers need to take
GST portal >> Go to ‘Report ITC Reversal Opening Balance’ 2)Go to ‘Services’ from the homepage >> Go to ‘Ledger’ >> Click on ‘Electronic Credit Reversal and Re-claimed Statement’ >> Click on ‘Report ITC Reversal Opening Balance’ Archit Gupta listed five essential measures that will help taxpayers manage ITC reversals and reclaim better -A thorough reconciliation is to be done from April 2022 till date to determine ITC claimed, reversed, reclaimed, ineligible ITC, and pending reclaims and arrive at the opening balance for the ITC reversal statement. -A separate ledger is to be created in the books of accounts, if not practiced earlier, for all ITC reversals and reclaims going forward.
-A separate ledger in the books of accounts is to be created for temporary ITC reversals without mixing them up with permanent ITC reversals or ineligible ITC. -A trail of all ITC claimed, reversed, and reclaimed is to be maintained to be able to map the ITC reclaims back to the initial ITC claims and be audit-ready.
-Frequent reconciliations of GSTR-2B vis-à-vis GSTR-3B and purchase register must be conducted across tax periods to avoid double reclaims or missing reclaims. Meanwhile, as per a report in PTI, the GST Network has enabled geocoding functionality for the ‘additional place of business’ address of GST-registered businesses across all states and union territories.
The move is aimed at curbing fraudulent registrations under Goods and Services Tax (GST) by giving bogus addresses for the purpose of claiming ITC. Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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