The RCM Liability/ITC Statement has been introduced on the GST Portal to streamline and  enhance the transparency of transactions under the Reverse Charge Mechanism (RCM). This  statement helps taxpayers ensure that their RCM liabilities reported in GSTR-3B are aligned with the  Input Tax Credit (ITC) claimed.  

Key Features Of The RCM Liability/ITC Statement:  

Purpose:  

 To ensure transparency and accurate reporting of RCM transactions.  

 To monitor the carry forward ITC, track any excess or short-paid RCM liabilities, and  reclaim ITC that was reversed earlier.  

Availability:  

 For Monthly Filers: From the August 2024 tax period.  

 For Quarterly Filers: From the July-September 2024 quarter.  

Portal Navigation:  

 You can access the statement by navigating through: Login >> Services >> Ledger >> RCM  Liability/ITC Statement.  

Opening Balance Requirements:  

The opening balance needs to be declared in two scenarios:  

1. Excess RCM Liability Paid, but ITC Not Claimed.  

2. Excess ITC Claimed, but RCM Liability Not Paid.  

Important Notes:  

 This statement is not required to be filled from FY 2023-24 onwards if there is no  mismatch between the RCM liability paid and the RCM credit availed.  

 If the RCM credit availed is less than the liability paid but is an ineligible credit, such short  availment is disclosed in Table 4(B)(2) of GSTR-3B.  

Key Timelines:  

 Opening Balance Declaration: The deadline to declare the opening balance is October  31, 2024.  

 Amendments: Up to three amendments can be made by November 30, 2024. After this  date, no amendments will be allowed.  

Reporting & Reconciliation:  

 For monthly filers: Ensure the RCM ITC is reconciled up to the July 2024 return period.   For quarterly filers: Ensure reconciliation up to Q1 of FY 2024-25 (April-June 2024).  

Disclaimer: 

The Information provided in this Document does not, and is not intended to, constitute legal advice; instead,  all information, content, and materials available in this document are for general informational purposes  only, prepared based on relevant tax provisions and information available on the period of preparation.