Error while claiming Reverse Charge for purchase from unregistered person in GSTR3B

I have given rent of 30,000 Rs value to unregistered person.
So I entered 2700CGST and 2700SGST in Table 3.1(d).

Now, I am getting below error while (RCM ITC Claim) editing values in
Table >> 4. Eligible ITC
Row >> (3) Inward supplies liable to reverse charge (other than 1 & 2 above)

The information entered by you in cells highlighted in red is in variance with the auto-populated data in table 4A. The input tax credit has been auto-populated based on the GSTR-2B generated for you. Also, please note that any variance above 5% of the input tax credit is in contravention to Rule 36(4) of the CGST Rules, 2017.

As auto populated values in Table 4A(3) was ZERO and I was making values which I am entering in 3.1(d).

As I want to claim for paid 2700CGST and 2700SGST for purchase from unregistered person as RCM supply.

As this is RCM supply from unregistered person, so cannot be auto populated in Table 4A(3) Inward supplies liable to reverse charge (other than 1 & 2 above).

Plese guide me for claiming Reverse Charge for purchase from unregistered person in GSTR3B.

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Hey Sobrat! Your issue is a common one related to claiming ITC on reverse charge supplies from unregistered persons in GSTR-3B. Here’s a clear explanation and solution:

Why the error occurs:

Table 4A of GSTR-3B is auto-populated based on GSTR-2B data.
But GSTR-2B does NOT include inward supplies from unregistered persons under reverse charge (RCM) because such supplies are not reflected in supplier’s returns.
Hence, Table 4A(3) shows zero ITC for RCM on purchases from unregistered persons.
When you manually enter ITC under Table 4(3) (Inward supplies liable to reverse charge other than 1 & 2), it conflicts with zero auto-populated value in 4A(3), triggering the error due to variance.

How to properly claim ITC on RCM for unregistered persons:

In Table 3.1(d) of GSTR-3B:
- Report the total taxable value (₹30,000 in your case) under Reverse Charge.
- Report CGST and SGST payable under reverse charge (₹2700 each in your case).
In Table 4 of GSTR-3B:
- You cannot claim ITC here manually against the RCM on unregistered persons because Table 4 ITC is auto-populated from GSTR-2B.
- The ITC on RCM for unregistered persons must be claimed in Table 4B which is the ‘eligible ITC as declared in returns filed for previous tax periods’ or should be matched carefully against actual payments.
How to claim ITC correctly:
- Ensure you have paid the RCM amount (CGST + SGST) while filing the return under Table 3.1(d).
- Once paid, you can claim the ITC in Table 4B (if available).
- If you try to manually enter ITC in Table 4(3), you will get the error because of mismatch with auto-populated data.
Additional Points:
- ITC on RCM for unregistered suppliers should not be auto-populated but you still must pay tax on such supplies.
- For claiming ITC, you may have to rely on Table 4B or manual adjustments.
- This often causes confusion, but the portal is designed this way because GSTR-2B does not have this data.

What you should do to avoid the error:

Do not manually enter ITC under Table 4(3) if auto-populated value is zero.
Just pay the RCM tax in Table 3.1(d).
The ITC on such RCM tax can be claimed as eligible ITC only if all compliances are met and as per rules.
You can try to claim it in Table 4B or consult with GST practitioner for manual reconciliation.

Summary:

Step	Action
Tax liability on RCM	Enter in Table 3.1(d) (CGST & SGST payable)
ITC claim on RCM	Do NOT enter manually in Table 4(3) if zero in 4A
ITC claim alternative	Claim in Table 4B (eligible ITC)