ITC reversed and reclaimed in GSTR-3B: what goes into Annexure B and Net ITC

Enter each month’s reversals in Annexure B as they appear in that month’s GSTR-3B: reversals under rules 38, 42 and 43 and section 17(5) in one row, and other reversals from Table 4(B)(2) in the other. Credit you reclaim in a later return counts as input tax credit (ITC) availed in the period you reclaim it. GSTN Annexure B advisory, section 6; CBIC Circular 125/44/2019-GST, paragraph 43(c).

One case is unsettled: a reversal during the claim period of credit you took in an earlier period. GSTN’s instruction deducts it from Net ITC; a GST Appellate Tribunal bench has held that it should not be deducted. Decide that case with your preparer before you upload.

What Net ITC counts

For a refund on exports under LUT, Net ITC is the “input tax credit availed on inputs and input services during the relevant period”, and the relevant period is the period of the claim. CGST rule 89(4)(B) and (F). Credit is availed when you take it in GSTR-3B, so an August invoice whose credit you take in September’s return belongs to September. Circular 125, paragraph 61.

CBIC has clarified that credit you reverse “cannot be held to have been ‘availed’ in the relevant period”, and that if you avail it again in a later period, within the section 16(4) time limit, “it can be refunded … in that tax period”. That later refund is subject to also reversing the accounting entry that treated the credit as a cost. Circular 125, paragraph 43(c).

Where each reversal sits in GSTR-3B

GSTR-3B table	What it holds
4(B)(1)	Reversals that are permanent: rules 38, 42 and 43, and credit blocked under section 17(5)
4(B)(2)	Reversals you can reclaim later, such as rule 37 (supplier not paid within 180 days) and section 16(2)(b) and (c); also corrections of credit taken by mistake in earlier periods
4(A)(5)	Where you reclaim a 4(B)(2) reversal once its condition is met
4(D)(1)	Where you also disclose that reclaimed amount

CBIC Circular 170/02/2022-GST, paragraph 4.3.

What the Annexure B utility asks for

The Annexure B utility has an invoice table (Table 2) and a reversal table (Table 1). The reversal table has two input rows, each by tax head:

• Reversal as per rules 38, 42 and 43 of CGST Rules and section 17(5): “the amount of ITC reversal made under Rule 38, 42 or 43 as reported in the corresponding month’s GSTR-3B”.
• Reversals – Others: “any Other ITC reversals made during the month as reflected in Table 4(B)(2) of GSTR-3B”.

The utility subtracts both rows from the ITC in the invoice table to give Net ITC. If you split the invoices across several files, enter the reversals only in the last file and zero in the others. GSTN advisory, section 6. The utility has no field for reclaimed credit or for Table 4(D)(1).

The JSON generator asks for the same two reversal rows by tax head, with the same last-file rule.

Three situations and how to report them

Situation in the claim period	Annexure B	Effect on Net ITC
Credit taken and reversed within the claim period	The invoice in Table 2; the reversal in the matching reversal row	Reduced by the reversal
Credit reversed in an earlier period and reclaimed in the claim period	No instruction from GSTN. See reclaimed credit below	Counts as availed in the claim period
Credit taken in an earlier period and reversed in the claim period	GSTN: the full Table 4(B)(2) figure in “Reversals – Others”	Disputed. See the tribunal ruling below

Credit you reclaim in the claim period

Annexure B lists the invoices “for which ITC has been claimed in GSTR-3B”, and a reclaim is claimed in Table 4(A)(5) of that period’s return. Listing the invoice in Table 2 of the reclaim period’s Annexure B, with its actual GSTR-2B period, fits both the utility’s description and paragraph 43(c). An earlier GSTR-2B period is accepted for refund purposes. Circular 197/09/2023-GST, paragraph 1.

GSTN has not published an instruction for this case. Attach a note to the claim naming each reclaimed invoice, the month you reversed its credit, the month you reclaimed it and the 4(D)(1) figure. If the invoice was also in an earlier refund claim, show how that claim treated it, so that the same credit is not claimed twice.

Nirav Patel asked GSTN on X how to report credit claimed in 4(A)(5), reversed in 4(B)(2) and reclaimed with 4(D)(1). GSTN’s reply referred him to its helpdesk.

A reversal of credit taken before the claim period

A GST Appellate Tribunal bench at Ranchi dismissed the department’s appeal against a refund that had not deducted such a reversal. The exporter had reversed ₹2 crore of cess credit in September 2022, more than the ₹65 lakh it availed in the whole July 2022 to March 2023 claim period. The tribunal held that rule 89(4) refers to credit availed during the relevant period, and that paragraph 43(c) “cannot be read as laying down a proposition that every reversal made during the relevant refund period must necessarily be treated as a reduction” of that period’s credit, “irrespective of the period to which the underlying credit relates”. Pramod Chandan Surin v. Shivam Iron & Steel Co. Ltd., APL/11/RNC/2026, order of 23 September 2026, paragraph 24. Abhishek Raja Ram posted the ruling on X.

The ruling concerned a goods exporter’s cess refund, filed before the Annexure B utility existed. It does not mention the utility, which asks for the month’s full 4(B)(2) figure.

For example, in a July–September 2026 claim, all of your sales are exports and the invoices in Table 2 carry ₹50,000 of ITC. August’s GSTR-3B shows ₹6,000 in Table 4(B)(2): ₹4,000 is a rule 37 reversal on January 2026 invoices whose credit you took in January, and ₹2,000 reverses credit you took in July. All figures are invented.

Treatment	“Reversals – Others”	Net ITC
GSTN’s instruction: the full 4(B)(2) figure	₹6,000	₹44,000
The tribunal’s reading: only claim-period credit	₹2,000	₹48,000

Following GSTN’s instruction costs this claim ₹4,000 of refund. Following the tribunal’s reading means entering a figure that differs from the 4(B)(2) total in your GSTR-3B, against the utility’s instruction. The portal calculates the consolidated Net ITC from your uploaded Annexure B files, and the RFD-01 computation lets you edit it only downwards, so the choice has to be made in Annexure B before you upload. GSTN advisory, section 6; GST portal: refund computation.

Whichever treatment you choose, attach a note that splits the 4(B)(2) figure by the period in which each credit was taken, with the invoices and returns behind it. The GST Council has recommended a circular on reporting ITC reversals in GSTR-3B; check whether it has been issued before you file. GST Council press release, 8 October 2026, paragraph 5.1.

For eligibility and blocked credit on each invoice, see Annexure B eligibility and reversals. For the full refund formula, see the refund calculation.