Answer

1. F

   Facts

   Circular 170/02/2022-GST says reversals that can be reclaimed later, such as Rule 37 and Rule 37A, go in Table 4(B)(2). Permanent reversals go in Table 4(B)(1).

2. P

   Provisions and law

   • Circular 170/02/2022-GSTExplains reporting of ITC reversals in GSTR-3B: permanent reversals in Table 4(B)(1), reclaimable ones such as Rule 37 and 37A in Table 4(B)(2).
   • Rule 37, CGST Rules 2017If the supplier is not paid within 180 days of the invoice, the proportionate ITC is shown as reversed in the GSTR-3B for the tax period immediately after the 180 days, with interest under Sec 50; it is re-availed once payment is made. Not applicable to reverse charge supplies, and to deemed supplies without consideration.
3. A

   Analysis

   Using 4(B)(2) builds your balance in the credit reversal and reclaimed statement, which you need to reclaim later in Table 4(D)(1). If you wrongly put it in 4(B)(1), the portal will not let you reclaim it later. Reclaimed credit is shown in Table 4(A)(5) and also in 4(D)(1). Keep a note of each reversal and reclaim.

4. C

   Conclusion

   1. 1Compute the Rule 37 reversal for the period.
   2. 2Enter it in Table 4(B)(2) of GSTR-3B.
   3. 3Check the reclaim statement balance after filing.
   4. 4Reclaim later in 4(A)(5) and 4(D)(1) after payment.

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