GST Portal Update: Introduction of RCM Liability/ITC Statement

To help taxpayers accurately report Reverse Charge Mechanism (RCM) transactions, a new “RCM Liability/ITC Statement” has been introduced on the GST Portal. This statement aims to improve the accuracy and transparency of RCM transactions by capturing the RCM liability reported in Table 3.1(d) of GSTR-3B and the corresponding ITC claimed in Tables 4A(2) and 4A(3) of GSTR-3B for each return period. It will be applicable starting from the tax period of August 2024 for monthly filers and from the quarter of July-September 2024 for quarterly filers. The RCM Liability/ITC Statement can be accessed via the navigation path: Services >> Ledger >> RCM Liability/ITC Statement.

Reporting Opening Balance in the RCM ITC Statement

To report the RCM ITC opening balance, follow these steps:

1. Login to the GST Portal.
2. Navigate to Report RCM ITC Opening Balance or go to Services >> Ledger >> RCM Liability/ITC Statement >> Report RCM ITC Opening Balance.

Important Points:

• Excess RCM Liability Paid: If you have already paid excess RCM liability as declared in Table 3.1(d) of GSTR-3B but did not avail of the corresponding ITC in Tables 4A(2) or 4A(3) of GSTR-3B, you should report a positive value for the excess paid liability as the RCM ITC opening balance in the RCM statement.
• Excess RCM ITC Claimed: If you have claimed excess RCM ITC in Tables 4A(2) or 4A(3) of GSTR-3B but did not declare the corresponding liability in Table 3.1(d) of GSTR-3B, you should report a negative value for the excess claimed ITC as the RCM opening balance in the RCM statement.
• Reclaiming RCM ITC: If you need to reclaim RCM ITC that was reversed in earlier tax periods through Table 4B(2) of GSTR-3B, you can reclaim it in Table 4A(5) of GSTR-3B. Note that such reclaimed ITC should not be reported through Tables 4A(2) or 4A(3) of GSTR-3B, and the reversal should not be included in the RCM ITC opening balance.

Reconciliation and Deadlines:

• Monthly Filers: Report the opening balance by considering RCM ITC up to the July 2024 return period.
• Quarterly Filers: Report the opening balance for the period up to Q1 of FY 2024-25, considering RCM ITC up to the April-June 2024 return period.
• Deadline for Declaring Opening Balance: You can declare the opening balance until October 31, 2024.
• Amendments: Any errors in declaring the opening balance can be corrected until November 30, 2024. Taxpayers will have up to three opportunities to make corrections.

Please note that the amendment facility will no longer be available after November 30, 2024.