Advisory & FAQ on Electronic Credit Reversal and Re-claimed Statement & RCM Liability/ITC Statement
GST
Dated:- 30-12-2025
1. To ensure correct and accurate reporting of reversed and reclaimed ITC and to avoid clerical mistakes, Electronic Credit Reversal and Re-claimed Statement (Reclaim Ledger) was introduced on the GST portal from August 2023 return period onwards for monthly taxpayers and from July-September 2023 quarter for quarterly taxpayers. This Reclaim Ledger captures the ITC temporarily reversed in Table 4(B)2 and its subsequent reclaim in Table 4(A)5) and 4(D)1.
2. As of now taxpayer get a warning message if a taxpayer attempts to re-claim excess ITC in table 4D(1) than the available ITC reversal balance but the taxpayer is allowed to file its Form GSTR-3B.
3. To the taxpayers multiple opportunities have been given to report their opening balance which was earlier reversed ITC but was not reclaimed till that ti
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pening balance and amend the opening balance for both the said statements where any transaction related to excess ITC reversal or excess RCM liability/ITC prior to implementation of the said statements could be declared as opening balance to these statements.
8. This RCM Liability/ITC Statement can be accessed through: Services >> Ledger >> RCM Liability/ITC Statement.
9. Now, the taxpayers are hereby informed that, shortly, negative values or availment of excess ITC over and above available balance, shall not be allowed in both the ledgers. Both the statements shall have a below mentioned validation for regulation of ITC:
a. The reclaimed ITC in Table 4(D)(1) shall be lesser than or equal to the combined values of closing balance of Electronic Credit Reversal and Re-claimed Statement and ITC being reversed in Table 4(B)(2) of current period GSTR-3B. and,
b. The RCM ITC claimed in Table 4(A)2 & 4(A)3 shall be equal to or less than the combin
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g balance in the current return period.
11. For more information on Electronic Credit Reversal and Re-claimed Statement please refer the advisory dated 17th September, 2024 issued by GSTN by clicking below link https://tutorial.gst.gov.in/downloads/news/itc_pending_ledger.pdf. Also, detailed advisory on Introduction of RCM Liability/ITC Statement can be seen by clicking on below link:https://services.gst.gov.in/services/advisoryandreleases/read/514 .
FAQs related to Electronic Credit Reversal and Re-claimed Statement and RCM Liability/ITC Statement
1. How to view my Electronic Credit Reversal and Re-claimed Statement?
You can view the statement by navigating to the Dashboard › Services › Ledger › Electronic Credit Reversal and Re-claimed.
2. How to view my RCM Liability/ITC Statement?
You can view the RCM Liability/ITC Statement by navigating to the Dashboard › Servic
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In case there is no ITC available, this reversal declared in table 4(B)2 will be added to your liability in current period while filing GSTR-3B.
Example: The closing balance of the ITC reclaim ledger for the current return period is -Rs.10,000, which means Rs.10,000 of excess ITC has been reclaimed in earlier periods. To file your GSTR-3B, you would need to reverse this earlier excess reclaimed ITC of Rs.10,000 in Table 4B(2) for the current period.
5. How will the validation mechanism work in GSTR-3B for RCM Liability/ITC Statement?.
The taxpayers will not be able to file GSTR-3B in case the claimed RCM ITC in Table 4A(2) or 4A(3) exceeds the available balance in the RCM Liability/ITC Statement and the RCM liability reported in Table 3.1(d) for the current return period put together.
6. How to file GSTR-3B if closing balance of RCM Liability/ITC Statement is Negative?
If the closing balance of the RCM Liability/ITC Statement is negative, it indicates that excess RCM IT
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