Clear, a leading B2B SaaS platform, is revolutionizing the tax reporting landscape with its innovative automated tool for GSTR-3B Table-4. This groundbreaking solution eases the tax filing process and ensures accurate Input Tax Credit (ITC) reporting.
Clear’s GST Table-4 automation tool is set to revolutionize the process of dealing with the complexities of Table 4 of the GSTR-3B return form. This innovative tool brings a host of benefits to its users, simplifying the reporting process and enhancing accuracy. One of its key features is the auto-population of Table 4, which leverages GSTR-2B vs. Purchase Register reconciliation data, ensuring that the reporting aligns precisely with the latest tax return changes. Moreover, ClearGST offers users access to detailed calculations for each sub-section, facilitating improved reporting accuracy.
To make the process even more user-friendly, the platform provides an Excel summary file complete with comprehensive calculations at a sectional level, making it convenient for users to reference and review their data. Furthermore, ClearGST’s Table-4 automation tool allows users to maintain a calculation trail, tracking all ITC claims at both section and document levels. This feature ensures transparency and reliability, providing a clear and dependable audit trail for users. Clear’s Table-4 automation tool streamlines the tax reporting process, making it efficient and hassle-free for businesses.
Challenges Addressed by ClearGST
Table-4 of GSTR-3B has undergone format and reporting changes since July 2022, restricting ITC claims to eligible/available data from the GSTR-2B. However, many businesses in India still find the reporting requirement in Table 4 challenging as businesses also need to bifurcate the ITC into temporary and permanent reversals, as well as ITC reclaimed during a tax period. In addition, authorities are implementing automated data tracking, intimations, and audits to scrutinize ITC claims further.
ClearGST is committed to helping businesses avoid GST notices and penalties by ensuring accurate and compliant Table-4 reporting.
Importance of Accurate ITC Reporting in Table-4
Table-4 plays a pivotal role in tax reporting, as it contains the breakdown of ITC information for a specific return period. The revised Table-4 requires a detailed split of ITC into eligible, ineligible, reversed, and reclaimed categories. Accurate reporting is crucial for the government’s computation of net tax liability and GST dues. Failure to report precise values can result in discrepancies with the GSTR-2B, leading to notices and penalties.
Systemic Changes for Compliance
To ensure seamless compliance with the revised Table-4 of GSTR-3B, Clear recommends some approaches that businesses can adopt. Firstly, maintaining separate ledgers specifically dedicated to ineligible ITC is advised, as this approach enhances tracking and bolsters overall accuracy in reporting. Secondly, Clear suggests regular reconciliation of GSTR-2B transactions with the Purchase Register (PR) to ensure precise reporting, encompassing all aspects, including ineligible ITC. Additionally, tracking the movement of invoices and credit or debit notes (CDNs) is paramount to effectively report reversals and reclaims within Table-4, fostering adherence to compliance regulations. Lastly, Clear emphasizes the importance of accurate reporting within each section of Table-4, aligning seamlessly with the latest norms and standards, thereby strengthening overall compliance efforts.
Addressing the occasion, Archit Gupta, Founder and CEO of Clear, said, “Clear’s GST Table-4 automation tool is a game-changer for businesses navigating the complexities of reporting. With ClearGST, businesses can not just become fully compliant but also unlock their full potential and see benefits across the value chain.”
Clear emphasizes the need for automation in Table-4 reporting, as manual processes are prone to errors and discrepancies between GSTR-2B and GSTR-3B. Tech-based solutions like ClearGST provide a reliable audit trail, mitigating the risk of non-compliance and notices.
Clear is dedicated to simplifying tax processes for businesses and individuals, and their Table-4 automation tool is a significant step toward achieving this mission.