Understanding GSTR-2 Part 10

In our series of blogs on ‘How to File GSTR-2 Part 9’, we have discussed about furnishing details till table 10 of GSTR-2. In this blog, we will discuss about furnishing details pertaining to ITC reversal in various business scenarios. These details need to be furnished in table 11 of GSTR-2 as shown below:

The above table is categorized into two parts 11A and 11B. In 11A, you need to provide the details related to current month (return period) and in 11B, any amendments to the details furnished in 11A, needs to be reported.

11A: Current month ITC reversal
In table 11A, the details of ITC which are reversed in the current month need to be reported. The ITC reversed in the above table will be added back to output tax liability. Similarly, in a certain situation, you are allowed to re-claim the ITC which was reversed earlier and such an amount to the extent of re-claim will be reduced from the output tax liability.
In 11A, you need to declare the following details:

Amount in terms of rule 37(2)
If you have availed input tax credit on any inward supply of goods or services or both, but failed to pay to the supplier, the value of such supply along with the tax payable thereon, within the time of 180 days, the proportionate amount of input tax credit availed on such unpaid amount needs to be reversed. The details of such reversal needs to be captured in 11A.

Amount in terms of rule 39(1) (j) (ii)
This is applicable for units which have received credit from ISD. If a credit note was issued by the ISD to the recipient unit for reduction of credit distributed, then to the extent of credit note amount, ITC should be reversed and it will be added to output tax liability. To know more, please read ISD: How to Distribute Input Tax Credit

Amount in terms of rule 42(1) (m)
This is applicable for businesses that use inputs or input services for making taxable supplies, exempt supplies and have used inputs or input services for non-business (personal) purpose. The reversal of tax paid on inputs or input services used for exempt supplies or for non-business purpose which are not identifiable at invoice level needs to be reported here.
Note, if these inputs or input services mentioned in the invoice are exclusively or partially used for making exempt supplies or used for non-business purposes which are identifiable at invoice level, such details need to be reported in table 3 to 6 of GSTR-2 as applicable. To know more, please read how to File GSTR-2: Part-1

Amount in terms of rule 43(1) (h)
This is similar to reversal discussed above. Here, if capital goods are used for non-business purposes or exempt supplies which cannot be identified at invoice level, should be reversed and added to output tax liability.

Amount in terms of rule 42 (2) (a)
The details declared in C and D above will be again calculated after the annual return is furnished. If total ITC on inputs of exempted/non-business purpose is more than the ITC actually reversed during the year then the difference amount will be added to output liability along with the applicable interest.

Amount in terms of rule 42(2) (b)
If total ITC on inputs of exempted/non-business purpose is less than the ITC actually reversed in C and D during the year then the difference amount will be reclaimed as ITC and the amount to the extent of re-claim will be reduced from your output tax liability.

All the above details need to be manually entered in the GST portal. The following are the steps to provide details of input tax credit reversal or reclaim.
1. From GSTR-2 Return Page, click the ‘11 – Input Tax Credit Reversal/Reclaim’ as shown below:

2.Enter the Amount of ITC reversal under respective columns (discussed above) as shown below:

3.Click the ‘SAVE’ button to save the details entered. The saved details will be shown as below:

Once the details are added, a summary of the data will reflect in table 11 as shown below:

11B: Amendments of information furnished in table 11A

If there are any corrections or amendments to the reversal of ITC furnished in 11A belonging to earlier return period, you need to report the details in 11B. This will not be applicable for July, 2017 since amendments will occur only from August, 2017 return onwards and accordingly, the same is not enabled in the GST portal.
Next blog post in this series 
How to File GSTR-2 PART-11: Addition and reduction of tax liability on account of mismatch and other reasons