GST · Input tax credit
Why does the input tax credit in my GSTR-2B differ from my books, and how do I reconcile it?
Short answer
GSTR-2B shows only invoices your suppliers have reported and you have accepted (or not rejected) on the Invoice Management System, for that period. Differences arise when suppliers file late or wrongly, file quarterly, or when you book purchases in a different month. You can claim only what appears in GSTR-2B, so reconcile invoice by invoice every month before filing GSTR-3B, follow up with suppliers, and keep the working.
Common reasons for a difference
| In your books, not in GSTR-2B | In GSTR-2B, not in your books |
|---|---|
| Supplier has not filed GSTR-1 or IFF yet, or filed after the cut-off | Purchase booked late in your accounts |
| Supplier files quarterly (QRMP) and has not used the IFF | Invoice issued to your GSTIN by mistake, or not genuine |
| Wrong GSTIN, invoice number or amount entered by the supplier | Goods or services not yet received |
| Invoice kept pending or rejected on the IMS | Credit on blocked items (section 17(5)), which you must not claim anyway |
| Reverse-charge purchases and some imports, reported differently | Credit notes from suppliers that reduce your credit |
The monthly routine
- Act on the Invoice Management System: accept invoices you have received, reject wrong ones, keep doubtful ones pending. GSTR-2B (generated on the 14th) reflects these actions and is regenerated if you change them before filing.
- Match invoice by invoice with your purchase register, by supplier GSTIN, invoice number, date and tax.
- Chase the gaps: ask suppliers to file or correct. Do not claim credit until the invoice appears in GSTR-2B; claim it in the month it does, within the time limit.
- Check the extras in GSTR-2B before accepting them.
- Remove ineligible credit: blocked credit, credit on exempt supplies, and unpaid invoices older than 180 days.
- File GSTR-3B with eligible credit only, and keep the reconciliation as a working paper.
Why it matters
The portal compares GSTR-3B with GSTR-2B automatically. Excess claims trigger notices (DRC-01C or ASMT-10) and demands with 18% interest. Suppliers who repeatedly fail to report are also a risk to keep an eye on.
Read the input tax credit and GSTR-2B guide and our note on reconciling before the department does.
Legal basis
- Section 16(2)(aa), CGST Act, 2017
- Rules 36(4), 60 and 61, CGST Rules, 2017
Official sources
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