Скачать или смотреть Treatment of Credit Note in IMS-GSTR 2B-GSTR 3B | New Amendments in IMS from Oct 2025 Taxperiod.

Question : Will the taxpayer get any option to declare the amount of ITC which need to be reversed?

Answer : Currently the system reverses the entire ITC amount in GSTR-2B of a taxpayer on acceptance of Credit note and similar records even if the taxpayer has not availed the ITC of the corresponding invoice or has reversed certain amount (partial reversal) in GSTR-3B as there are no option to declare the value of ITC need to be reversed on acceptance of such CN.
Now as per the new changes introduced in the system from October 2025 tax period the recipient taxpayer shall have an option to declare the amount of ITC that needs to be reversed for a given record. On acceptance of the such record the below question will appear on screen.
“Whether ITC need to be reduced for the selected record(s)?”
This question will be asked to the recipient taxpayer at the time of accepting the above-mentioned records so that recipient can reverse the correct ITC amount which was actually availed earlier by him.
The taxpayer will be given 2 options (i) Yes or (ii) No
If recipient select the option NO, that means he hadn’t availed any ITC for corresponding invoice hence ITC reversal is not required. Therefore, no ITC reduction will happen for the selected record despite acceptance of such record.
If recipient selects Yes, it means full reversal or partial reversal is required.
In case of partial reversal is required, once recipient selects Yes, then the recipient will get an option to declare the amount of ITC which need to be reversed for the selected record. This declaration of value is OPTIONAL for taxpayers and the value should be provided by the taxpayer in cases of partial reversal is required.
In case where recipient require to reverse full ITC then recipient taxpayer will proceed by selecting the option YES and without declaring any value. In this case, recipient’s ITC will be reduced based on the full values of such record.
Based on the above, ITC will be calculated in GSTR-2B of recipient taxpayer and will be populated in GSTR-3B.