Negative values in Table 4 of GSTR-3B allowed on the GST portal

The GST portal has started allowing reporting of negative values in GSTR-3B, the summary return for all the regular GST taxpayers. The values in Tables 4A and 4D of GSTR-3B can be negative while filing. The GST Network (GSTN) issued an advisory on the GST portal on 17th February 2023.

Simply put, a negative value is allowed for reporting wherever the value of all credit notes exceeds the total value of outward supplies and debit notes in Table 4B. The changes made on the GST portal apply from January 2023 onwards, and taxpayers can find these changes from the returns filed for January 2023 and onwards.

The government changed Table 4 of GSTR-3B via CGST notification no.14/2022 on 5th July 2022. After that, taxpayers could report accurate information on the input tax credit claimed, reversed and ineligible for claims in this table. The ITC net of credit notes must be reported in Table 4(A). Meanwhile, any reversal of ITC must be mentioned in Table 4(B).

Currently, on the GST portal, GSTR-3B allows the Credit Note (CN) to auto-populate in Table 4B(2), signifying the ITC reversal. After the changes, CN will be accounted for on a net basis in Table 4(A) of GSTR-3B. 

It is a relief that the auto-population of values is allowed into Table 4A(5) of GSTR-3B, including the credit notes from GSTR-2B. It resolves the issues taxpayers faced earlier while reconciling the values with GSTR-2B. Before the change, the values in Tables 4(B)(1) and (2) were not linked to the particular documents. 

Further, this move will also allow taxpayers in easier reconciliation while reporting GSTR-9, the annual return. It is because Table 6A will now reflect values net of credit note along with an adjustment to Table 8A. It allows easier and more accurate comparison of values between Tables 8A and 8B.

Subsequent updates and modifications in the advisory and instructions are done in GSTR-2B without any structural changes to its summary or tables. Accordingly, the government has changed the calculation logic of the Comparison Report.

The GSTN has advised all taxpayers to be apprised of the changes by following the instructions when generating GSTR-2B and checking the system-generated GSTR-3B PDF before filing GSTR-3B.

For any clarifications/feedback on the topic, please contact the writer at annapoorna.m@clear.in