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Analysis and Reconciliation of GST Liability and Input Tax Credit

Monthly, Quarterly, Annually analysis and reconciliation of GST Liability and Input Tax Credit by taxpayers

Taxpayers are required to report their GST output liability and correct claiming of Input Tax Credit in their respective GST returns.

GST taxpayers should analyze and reconcile their GST output liability and ITC claimed in their GST returns on monthly basis with the help of the following reports:

  • Form GSTR-3B and Form GSTR-1; and
  • Reconciliation of Input Tax Credit claimed in the respective GSTR-3B and GSTR-2A/GSTR-2B.

Communication between GST Buyers and Suppliers on the GST portal

Follow these simple steps to view and download Tax Liability and ITC Statement Summary report.

tax liabilities and ITC comparison
tax liabilities and ITC comparison financial year

The Tax Liability and ITC Statement Summary report are available to every taxpayer on annual basis, comparing the GST output liability and the ITC statement. These reports contain information gathered from Form GSTR-1, Form GSTR-3B, ITC claimed under Form GSTR-3B and accrued ITC as per Form GSTR-2A and GSTR-2B.

Rule 36(4) Adjustment of Total Shortfall of Input Tax Credit

Note:

It is to be noted that once the values are taken under the GST Liability and ITC statement as per Form GSTR-2B, the values available under Form GSTR-2A will not be considered.

Tax Liability and ITC Statement Summary report consists of the following additional reports:

ReportParticularsBasis
1.Tax liability other than export / reverse chargeBased on GSTR-1, GSTR-3B and ITC claimed
2.Tax liability due to reverse chargeonce GSTR-2B is implemented, the details in said reports will be based on GSTR-2B instead of GSTR-2A.  
3.Tax liability due to Export and SEZ suppliesBased on GSTR-1, GSTR-3B and ITC claimed
4.Input tax credit claimed and due (Other than import of goods)Once GSTR-2B is implemented, the details in said reports will be based on GSTR-2B instead of GSTR-2A.  
5.Input tax credit claimed and due (Import of goods)added from the tax period from which GSTR-2B is implemented.  

All about Reverse Charge Mechanism – RCM under GST

tax liability and itc statement
tax liability and other reports

Tax Liability and ITC Statement Summary report contain details pertaining to:

Sum of Tax LiabilityTax liability other than export/ reverse charge; (R1) and Tax liability due to export and SEZ supplies(R3)Basis: GSTR-1, GSTR-3B, and ITC claimed
Tax dueInput tax credit claimed and due (other than the import of goods) (R4); Input tax credit claimed and due (Import of goods) (R5)Once GSTR-2B is implemented, the details in said reports will be based on GSTR-2B instead of GSTR-2A

The main Tax Liability and ITC Statement Summary report is displayed by default. To open these additional reports the taxpayers can expand or contract the individual report by clicking on the name.

Non-Transmission of Export Invoices, IGST Refund got stuck due to SB errors

 Case 1: If taxpayers have declared less liability in GSTR-3B than what is furnished in GSTR-1

The taxpayer will be able to see the highlighted entries in RED color under Report 1 – Tax liability other than export / reverse charge, Report 2 – Tax liability due to reverse charge, and Report 3 – Tax liability due to Export and SEZ supplies as shown under the below image.

tax liability other than export/ reverse charge
report 2 tax liability due to reverse charge
report 3 tax liability due to export and sez supplies

Case 2: If taxpayers have claimed more Input Tax Credit than what is actually accrued as per Form GSTR-2A and GSTR-2B.

The taxpayer will be able to see the highlighted entries in RED in Report 4 – ITC claimed and due (Other than the import of goods) and Report 5 – Input tax credit claimed and due (Import of goods).

report 4 input tax credit claimed and due other than import of goods
report 5 input tax claimed and due import of goods

Taxpayers can download these reports in CSV format and Comparison report in Excel format.

Note:

The “Input Tax Credit and GST Liability Statement” report is generated on the basis of Form GSTR-1 and Form GSTR-3B filed by the taxpayer and after the generation of Form GSTR-2B.

The taxpayer can see the time of the last generated report that is displayed on the top of the Credit and Liability Statement default page.

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