Query Regarding Correct Reporting of RCM Liability in GSTR-3B

[vaibhav kumar]

Dear Sir, 

While filing GSTR-3B, I encounter a red highlight when I report RCM (Reverse Charge Mechanism) liability. Could you please guide me on the correct way to show RCM liability in GSTR-3B?

[Shilpi Jain]

Need further details. Which table are you reporting? Also when you are claiming ITC there is a red mark or when reporting?

Is there any figure which is autopopulating and red mark is appearing coz you are editing that figure?

[Pinnacle Tax Advisor]

A red alert in the column for RCM liability under Table 3.1(d) appears when the reported liability is less than the auto-populated value based on GSTR-2B.

Before filing, please verify the actual liability and compare it with the auto-populated figures.

If you're reporting a lower amount than what's reflected in GSTR-2B, ensure you have a valid and well-documented justification for the difference in liability.

[vaibhav kumar]

I am reporting the RCM liability on rent under GSTR-3B, Table 3.1(d) - Inward supplies (liable to reverse charge), and claiming the corresponding input tax credit in the subsequent month.

I am claiming ITC in Table 4A(3) (Inward supplies liable to reverse charge, other than 1 & 2 above). The red mark appears when I am claiming ITC. 

Regarding auto population, no figure is auto-populated in this section. The red mark appears only when I manually enter or edit the amount.

 

AI Summary

Reverse Charge Mechanism reporting: reconcile RCM liability in GSTR-3B with auto-populated figures or document any differences. Reverse Charge Mechanism reporting requires reconciliation between reported RCM liability and portal auto-populated figures; a red alert appears where reported liability is lower than the auto-populated amount and taxpayers must verify actual liability and document justifications. Claiming Input Tax Credit for RCM payments involves entering the credit in the designated RCM credit field; a red mark can arise when manually entering or editing ITC where no auto-population exists, indicating a validation mismatch that should be reconciled and supported by records.