Important Advisory from GSTN on ITC Reversal as per Rule 37(A) Compliance

The GSTN has issued Important Advisory No. 613 dated November 14, 2023, regarding the Reversal of Input Tax Credit (ITC) under Rule 37A of the CGST Rules, 2017.

According to Rule 37A, taxpayers are required to reverse the ITC availed on invoices or debit notes for which details have been provided by their suppliers in GSTR-1/IFF. However, if the supplier has not filed the return in FORM GSTR-3B for the relevant period by the 30th day of September following the end of the financial year in which the ITC was availed, the taxpayers must reverse the ITC.

This reversal of ITC should be done while filing the GSTR-3B return on or before the 30th day of November following the end of the financial year, as a legal obligation.

To assist taxpayers, the system has computed the amount of ITC required to be reversed under Rule 37A for the financial year 2022-23 and communicated it to the concerned recipients via email. Taxpayers are advised to take note of this and ensure the reversal of such ITC, if availed, by November 30, 2023, in Table 4(B)(2) of GSTR-3B when filing the respective return.
The official notification can be accessed from this given link: https://www.gst.gov.in/newsandupdates/read/613

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