GST Input Tax
Credit (ITC)
Reconciliation

🔍 Reason

Your supplier purchased goods/services from you but did not file their GSTR-1 on time (or at all). Since GSTR-2B is populated from supplier's GSTR-1, if supplier didn't file, your invoice won't appear in GSTR-2B.

⚠️ Impact

You cannot claim ITC on that invoice in the current month. It will appear in next month's GSTR-2B IF supplier files late GSTR-1.

✅ Solution

Contact supplier immediately, request GSTR-1 filing. Once filed, ITC will reflect in next month's GSTR-2B. Claim ITC in that month via Table 4(A) and simultaneously reverse in Table 4(B)(2) if already claimed.

🔍 Reason

Supplier filed GSTR-1 but entered wrong details — your GSTIN incorrect (typo), invoice number mismatch, invoice date wrong, taxable value or tax amount incorrect.

⚠️ Impact

Invoice appears in supplier's GSTR-1 but doesn't get mapped to your GSTIN in GSTR-2B. System fails to match and excludes ITC.

✅ Solution

Provide supplier with correct invoice copy. Supplier must file GSTR-1 amendment (via FORM GSTR-1A or in next month's GSTR-1). ITC will appear in subsequent GSTR-2B.

🔍 Reason

You purchased from a supplier who is unregistered under GST or is under composition scheme (composition dealers cannot issue tax invoices and cannot charge GST separately).

⚠️ Impact

No ITC is available. The purchase will NOT appear in GSTR-2B. If you wrongly claimed ITC in books, you must reverse it.

✅ Solution

Identify unregistered / composition suppliers in your vendor master. Do not claim ITC on such purchases. For unregistered suppliers, pay GST under Reverse Charge Mechanism (RCM) if applicable under Section 9(4).

🔍 Reason

You purchased goods/services that are specifically BLOCKED from ITC eligibility under Section 17(5) — motor vehicles (except specific business use), food & beverages, outdoor catering, beauty treatment, health services, membership of clubs, travel benefits to employees, works contract for immovable property (other than plant & machinery), etc.

⚠️ Impact

Even if invoice appears in GSTR-2B, ITC is NOT eligible. Claiming it will trigger notice during audit.

✅ Solution

Identify blocked credits in purchase register. Do not claim ITC on such invoices. If already claimed, reverse via Table 4(B)(2).

🔍 Reason

You imported goods and paid IGST at the time of customs clearance (Bill of Entry). Import ITC appears in ICEGATE system but does NOT appear in GSTR-2B (GSTR-2B only shows supplier invoices from GSTR-1/GSTR-5).

⚠️ Impact

ITC on imports is fully eligible, but the reconciliation tool will show it as a mismatch if you're only comparing with GSTR-2B.

✅ Solution

Download ICEGATE data separately. Claim import ITC as per Bill of Entry details. Maintain separate reconciliation for import ITC vs. domestic supplier ITC.

🔍 Reason

You purchased goods/services from unregistered suppliers or specified services under RCM (advocate, GTA, etc.). You paid GST under reverse charge. RCM purchases appear in GSTR-3B Table 4(A)(3) but NOT in GSTR-2B.

⚠️ Impact

ITC on RCM is eligible but will not appear in GSTR-2B. Reconciliation mismatch if not handled separately.

✅ Solution

Maintain separate register for RCM purchases. Claim ITC as per self-invoice / payment challan. Exclude from GSTR-2B reconciliation or tag separately.

🔍 Reason

Supplier issued credit note (for sales return, discount) or debit note (for additional charges) and reported it in GSTR-1. However, you didn't adjust corresponding ITC in your books.

⚠️ Impact

GSTR-2B shows net ITC after credit/debit note adjustment, but your books show original invoice ITC. Mismatch occurs.

✅ Solution

Reconcile credit/debit notes separately. Adjust ITC in books as per credit notes (reduce ITC) and debit notes (increase ITC). Ensure booking in the same month as supplier's GSTR-1.

🔍 Reason

Supplier issued invoice on 28 Feb and filed GSTR-1 in Feb. But you received and booked the invoice on 2 March in your books. GSTR-2B for Feb shows the invoice, but your purchase register shows it in March.

⚠️ Impact

Month-wise mismatch. ITC claimed in March but available in Feb GSTR-2B (or vice versa).

✅ Solution

Adopt accrual-based accounting — book invoices in the same month as invoice date (not receipt date). Or, track timing differences separately and adjust in reconciliation.