Reversal under Table 4.B.1 of GSTR-3B and reclaim

[vikash YADAV]

Is it possible to reclaim the ITC reversed under table 4.b.1 for 17(5) matter in subsequent year own his own without applying for any refund etc. citing the reason as reporting error.??

[Sadanand Bulbule]

The ITC was inadvertently reversed in Table 4(B)(1) of GSTR-3B treating it as blocked under Section 17(5) of the CGST Act due to a reporting error, and since the credit was otherwise eligible and originally availed within the time limit prescribed under Section 16(4) of the Central Goods and Services Tax Act, 2017, its reclaim in Table 4(D)(1) deserves as rectification of an inadvertent reversal, as the same does not amount to fresh availment of ITC and causes no loss of revenue to the Government.

[KALLESHAMURTHY MURTHY K.N.]

Sir,

I follow the reply of Sri Sadanand Bulbule Sir.

[vikash YADAV]

What is the purpose of these tables if everything is dismissed under the pretext of an "inadvertent error"?

Furthermore, there is no logical connection between sections 4.b.1 and 4.d.1.

[Sadanand Bulbule]

The simultaneous presence of Table 4(B)(1) and Table 4(D)(1) in GSTR-3B reflects a deliberate legislative design-since law never creates statutory fields without purpose-intended to permit reversal of ITC when circumstances so require and its subsequent restoration when eligibility is established, thereby ensuring that legitimate credit is not permanently forfeited due to temporary reversals or reporting errors.

In case of further doubts, visit the nearest GST office.

[vikash YADAV]

The dept is saying once reversal made under 4.b.1 by mistake you have to make application for refund. If reclaimed on his own then you have to reverse again by way of DRC-03

AI Summary

Input tax credit restoration allowed where reversal was a reporting error, effected as rectification in the return. Reclaiming input tax credit reversed in Table 4(B)(1) of GSTR 3B due to a reporting error is permissible as a rectification entry in Table 4(D)(1) when the credit was otherwise eligible and availed within the statutory time limit; the Table 4(B)(1)/4(D)(1) design allows temporary reversal and subsequent restoration, subject to documentary proof of prior lawful availment and compliance with eligibility conditions.