By Karun Reji, Chartered Accountant, BI-Outsource. General information, not tax or legal advice. Rules change: check the current position before you act.
Short answer: reconcile your purchase register with GSTR-2B every month before you file GSTR-3B. Claim credit only for invoices that appear in GSTR-2B, chase suppliers for the missing ones, and keep a record of every difference. This is the single biggest way to stop losing input tax credit.
What is GSTR-2B?
GSTR-2B is a monthly statement of input tax credit generated by the GST portal from your suppliers' GSTR-1 filings. Unlike GSTR-2A, it is fixed for the month, so it is the right document to reconcile against before filing GSTR-3B.
Why the reconciliation matters
- Credit can be claimed only if the invoice is reflected in GSTR-2B (section 16(2)(aa)).
- Excess credit in GSTR-3B compared with GSTR-2B is one of the most common triggers for scrutiny and DRC-01 notices.
- Missing invoices usually mean a supplier has not filed or has filed under the wrong GSTIN.
Step-by-step monthly process
- Download GSTR-2B (JSON or Excel) once it is generated for the month.
- Export your purchase register with GSTIN, invoice number, date, taxable value and tax.
- Match on GSTIN + invoice number, then check values and tax heads.
- Sort results into: matched, in books but not in 2B, in 2B but not in books, and value mismatches.
- Use the Invoice Management System (IMS) to accept, reject or keep pending supplier invoices.
- Email suppliers for missing or wrong invoices with a clear deadline.
- Claim in GSTR-3B only what is supported; carry the rest forward and claim when it appears.
| Mismatch | Usual cause | Fix |
|---|---|---|
| In books, not in 2B | Supplier not filed or filed late | Follow up; claim in the month it appears |
| In 2B, not in books | Invoice not received or not posted | Get the invoice; check it is genuine |
| Value or tax difference | Typing error or wrong tax head | Supplier amends in GSTR-1 |
| Wrong GSTIN | Supplier billed another branch | Supplier issues credit note and re-bills |
Time limits to watch
Credit for a financial year must be claimed by 30 November of the following year or the date of filing the annual return, whichever is earlier (section 16(4)). Suppliers who are not paid within 180 days also trigger reversal of the related credit under rule 37.
Need help? We do this every month for clients. See our GST reconciliation services.
