Advisory on Electronic Credit Reversal & Re-claimed Statement and RCM Liability/ITC Statement
The Goods and Services Tax Network (GSTN) has issued an Advisory along with FAQs dated 29 December 2025 to explain the working of two system-driven statements introduced on the GST portal, namely the Electronic Credit Reversal and Re-claimed Statement and the RCM Liability / ITC Statement. These statements aim to ensure correct reporting of Input Tax Credit (ITC) and to avoid clerical errors in Form GSTR-3B.
Electronic Credit Reversal and Re-claimed Statement
The Electronic Credit Reversal and Re-claimed Statement was introduced on the GST portal from August 2023 for monthly return filers and from the July–September 2023 quarter for quarterly filers. This statement captures ITC temporarily reversed in Table 4(B)(2) of Form GSTR-3B and the subsequent re-claim of such ITC in Table 4(A)(5) and Table 4(D)(1).
At present, if a taxpayer attempts to re-claim ITC in excess of the available balance reflected in this statement, the system issues a warning message. However, filing of Form GSTR-3B is currently allowed. Taxpayers were provided multiple opportunities to declare opening balances relating to ITC reversed earlier but not re-claimed at the time of introduction of this statement.
The statement can be accessed through Dashboard → Services → Ledger → Electronic Credit Reversal and Re-claimed.
RCM Liability / ITC Statement
To assist taxpayers in correct reporting of Reverse Charge Mechanism transactions, the RCM Liability / ITC Statement was introduced from August 2024 for monthly filers and from the July–September 2024 quarter for quarterly filers. This statement tracks RCM liability reported in Table 3.1(d) of Form GSTR-3B and corresponding ITC claimed in Table 4A(2) and Table 4A(3).
Where ITC claimed under RCM exceeds the available balance, a warning message is generated. Taxpayers were also given multiple opportunities to declare or amend opening balances relating to periods prior to the introduction of this statement.
This statement can be accessed through Services → Ledger → RCM Liability / ITC Statement.
Upcoming Validations in GSTR-3B
GSTN has informed that shortly, negative balances and excess availment of ITC will not be permitted. The reclaimed ITC in Table 4(D)(1) shall be restricted to the available balance in the Electronic Credit Reversal and Re-claimed Statement plus ITC reversed in the current period. Similarly, RCM ITC claimed in Table 4(A)(2) and Table 4(A)(3) shall be restricted to the RCM liability paid in Table 3.1(d) of the same period along with the closing balance of the RCM statement.
In cases where a negative balance already exists, Form GSTR-3B will not be allowed to be filed unless corrective action is taken by reversing excess ITC or paying additional RCM liability, as applicable.
Taxpayers are advised to regularly review these statements and ensure consistency between ledgers and Form GSTR-3B to avoid filing restrictions.
FAQ’s given by GST Department
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 › Services › Ledger › RCM Liability/ITC Statement.
3. What will be changed in the GSTR-3B in respect of Electronic Credit Reversal and Re-claimed Statement?
Shortly, taxpayer will not be able to file their GSTR-3B in case the ITC claimed in Table 4D(1) exceeds the closing balance in the Electronic Credit Reversal and Re-claimed Statement (ITC reclaim ledger) and the ITC reversed in Table 4B(2) of the current return period putting together.
4. How to file GSTR-3B if closing balance of Electronic Credit Reversal and Re-claimed Statement (ITC reclaim ledger) is already negative?
If the closing balance of the ITC reclaim ledger is negative, it indicates that excess ITC was reclaimed earlier. Therefore, to file GSTR-3B, you must reverse the excess claimed ITC in Table 4B(2) of the respective return period, up to the amount of the negative closing balance. This will allow you to correct the discrepancy and proceed with filing the return. 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 ITC has been claimed earlier. To proceed with filing, you must either pay the outstanding RCM liability in Table 3.1(d) or reduce the ITC being claimed in Table 4A(2) or 4A(3) in the current return period, equivalent the amount of the negative closing balance. Once the discrepancy is corrected, you will be able to file your return.
Example:
Let’s assume that the closing balance of the RCM Liability/ITC Statement is Rs. -5,000. This means that Rs. 5,000 of excess RCM ITC has been claimed earlier. To resolve this and file your GSTR-3B, you can:
1. Pay the RCM liability: You can pay additional Rs. 5,000 in Table 3.1(d) for the current return period to cover the excess ITC claimed.
OR
2. Reduce the ITC claimed: You can reduce Rs. 5,000 from the RCM ITC in Table 4A(2) or Table 4A(3) for the same period, if RCM ITC is available more than Rs. 5,000 in current period.
Once either the excess RCM liability is paid or the requisite ITC is reduced from available ITC to match the available negative closing balance, the discrepancy will be resolved, and you can proceed with filing your return.
You can excess this advisory from below mentioned link
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
