The Goods and Services Tax Network (“GSTN”) has issued an Advisory dated February 17, 2023, regarding the Introduction of Negative Values in Table 4 of GSTR-3B. The Government vide Notification No. 14/2022 – Central Tax dated July 05, 2022, has 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 an ITC reversal. Now given the said changes, the impact of credit notes is also to be accounted for on a net-off basis in Table 4(A) of GSTR-3B only. Accordingly, the following changes have been made in the GST Portal from January-2023 period onwards and shall be applicable from the tax period – January 2023’ onwards.

a) The impact of credit notes & 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 the 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/modifications 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 the Comparison Report has now been changed accordingly.

The taxpayers are advised to go through the instructions/help text carefully in GSTR-2B & System Generated GSTR3B pdf before filing GSTR-3B.