GSTN allows negative values in Table 4 (ITC) of GSTR-3B

Goods and Services Tax Network (GSTN) has implemented the much-awaited change to GSTR-3B, allowing taxpayers to report negative values in Table 4 (ITC) on the GST portal.

This change was announced in an advisory issued by GSTN on 17/02/2023, providing information about the introduction of negative values in Table 4 of GSTR-3B.

The Government of India, through Notification No. 14/2022 – Central Tax dated 05-07-2022, had notified few changes in Table 4 of Form GSTR-3B for enabling taxpayers to report correct information regarding ITC availed, ITC reversal and ineligible ITC in Table 4 of GSTR-3B. According to the changes, the net ITC is to be reported in Table 4(A) and ITC reversal, if any, is to be reported in Table 4(B) of GSTR-3B.

Currently in GSTR-3B, credit note (CN) is being auto-populated in Table 4B(2), as ITC reversal. Now in view of the said changes, the impact of credit notes are also to be accounted on net off basis in Table 4(A) of GSTR-3B only. Accordingly following changes have been made in the GST Portal from January-2023 period onwards and shall be applicable from tax period - January 2023 onwards.

a. The impact of credit note & their amendments will now be auto-populated in Table 4(A) instead of Table 4(B) of GSTR-3B. In case the value of credit notes becomes higher than sum of invoices and debit notes put together, then the net ITC would become negative and the taxpayers will be allowed to report negative values in Table-4A. Also, taxpayers can now enter negative values in Table 4D(2) of GSTR-3B.

b. Consequent updates/ modification in the advisory, messages, instructions, and help-text in form GSTR-2B, without any structural changes in form GSTR-2B summary or tables have also been done in GSTR-2B.

c. The calculation logic of Comparison Report has now been changed accordingly.

You are advised to go through instructions/help text carefully in GSTR-2B & System Generated GSTR-3B pdf before filing GSTR-3B.

Q Will I be able to report negative figures in outward supplies in Table 3 on the GST portal ?

A No! Currently negative values can only be reported in Table 4 (ITC).

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