TaxTMI 
TaxTMI 
Reversal under Table 4.B.1 of GSTR-3B and reclaim
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....eversal under Table 4.B.1 of GSTR-3B and reclaim<br> Query (Issue) Started By: - vikash YADAV Dated:- 15-3-2026 Last Reply Date:- 19-3-2026 Goods and Services Tax - GST<br>Got 10 Replies<br>GST<br>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.?? Reply By Sadan....
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....and Bulbule: The Reply: 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....
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.... an inadvertent reversal, as the same does not amount to fresh availment of ITC and causes no loss of revenue to the Government. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, I follow the reply of Sri Sadanand Bulbule Sir. Reply By vikash YADAV: The Reply: What is the purpose of these tables if everything is dismissed under the pretext of an "inadvertent error"? Furthermore,....
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.... there is no logical connection between sections 4.b.1 and 4.d.1. Reply By Sadanand Bulbule: The Reply: 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 estab....
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....lished, 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. Reply By vikash YADAV: The Reply: 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....
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.... DRC-03 Reply By KASTURI SETHI: The Reply: The departments view is legally correct. Self-adjustment was allowed in Service Tax era and, that too, with some condition. Reply By Shilpi Jain: The Reply: Inadvertent reversal should be allowed to rectify / revise returns. Though no such facility available under GST. Considering the amount involved one could consider re-availing and making ....
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....an intimation to department that the error has been rectified by taking credit and disclosing in 4D1. One could also look at re-credit claim balance to take a call in this regard. Applying for refund could be cumbersome process. Reply By Shilpi Jain: The Reply: Additionally the understanding of 4B1 being permanent reversal etc. is only coming from a circular without any legal provision ....
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....backing. Reply By vikash YADAV: The Reply: The TP after the aforesaid reversal under 4.b.1, filed GSTR-9, GSTR-9C etc wherein he maintained the reversals the position made under 4.b.1, suddenly in next year he realised the mistake and reclaimed under 4.a.5 of GSTR-3B. i think it's wrong. Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, Table 4(B)(1) is provided in GSTR-3B f....
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....or reporting of reversal of ITC of a permanent nature, like restriction u/s 17(5) and Rule 38, 42 or 43, where it is considered to be ineligible to avail. If the reversal was due to Rule 37 - Non-payment of the sale consideration within 180 days, in case of goods not received hit by Sec. 16(2)(b) and Sec. 16(2)(c) where ITC not paid by the supplier (but subsequently recovered) and reversal by a....
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....n inadvertent error, it should be reported in 4(B)(2) which is meant for temporary reversal and not 4(B)(1). However, sometimes taxpayers mistakenly used 4(B)(1). If the taxpayer realises the mistake in the next year, they can reclaim it under 4(A)(5) and report it in 4(D)(1). However, such a reclaim is regulated by the time limit specified under Sec. 16(4). Although it is necessary to intim....
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....ate in writing to the jurisdictional officer explaining that the reversal in 4(B)(1) was an error, citing the "inadvertent error" clause to avoid unnecessary audit queries. Even if the department does not accept it, it should be applied for the refund. In my view, any human error is rectifiable, where the reversal does not have statutory force.<br> Discussion Forum - Knowledge Sharing ....