GSTR-2B Table 4D mismatch: unmatched invoices and fixes

During monthly reconciliation between the 14th and the 20th, finance teams frequently spot bills present in both their purchase register and the supplier return, yet absent from eligible tax credit. Instead of feeding into available credit, these records sit inside the ITC not available section of GSTR-2B. When accountants prepare GSTR-3B, this difference creates confusion over whether to claim the tax, how to report it under Table 4(D), and how to clear the ledger balance in accounting software.

What Table 4 represents in GSTR-2B and GSTR-3B

GSTR-2B separates inward supplies into two distinct parts. Part A covers ITC available, which automatically transfers into eligible credit rows. Part B, displayed as Table 4 in portal summaries, captures ITC not available. In downloaded Excel workbooks, these bills appear in separate sheets marked as ineligible.

This division flows straight into your monthly return. As explained in the GSTN GSTR-3B user manual, the portal transfers ineligible inward supplies from GSTR-2B into Table 4(D)(2), which covers ineligible credit under Section 16(4) and place of supply restrictions. Meanwhile, Table 4(D)(1) remains reserved for reporting credit reclaimed that was earlier reversed under Table 4(B)(2).

Figures in Table 4(D) never credit your electronic credit ledger. They serve strictly as an informational disclosure to tax officers. To see how each return line interacts during filing, review our walkthrough on GSTR-3B meaning, format, and how GSTR-2B feeds it.

Four reasons an invoice lands in Table 4(D)

Invoices do not land in Table 4(D) by accident. The portal executes specific automated validation checks when generating GSTR-2B on the 14th of each month:

1. Place of supply restrictions

Place of supply mismatches cause most blocked entries in GSTR-2B. Under statutory rules, input tax credit can only be utilized if the charged tax matches your state registration. For instance, if a vendor in Maharashtra provides services with the place of supply designated as Maharashtra, they levy Maharashtra CGST and SGST. If your business holds registration only in Karnataka, you cannot utilize Maharashtra central and state tax. The portal flags the place of supply as the vendor location and shifts the invoice straight to Table 4.

2. Section 16(4) time-barred filings

Under Section 16(4) of the CGST Act, a registered person cannot take input tax credit on any invoice or debit note after 30 November following the end of the financial year, or the filing of the annual return, whichever is earlier. When a vendor files an overdue bill in their outward return after this cutoff date, the portal detects the prior year and tags the credit as ineligible in Table 4.

3. Supplier cancellation or retrospective suspension

If a supplier issues a tax invoice but their GST registration gets cancelled retrospectively by the proper officer, the portal blocks credit on inward supplies dated after the effective date of cancellation.

4. Composition supplier status

Under Section 10 and Section 17(5)(e), tax paid on supplies obtained from a composition taxable person cannot be availed as credit. Invoices filed under composition schemes or incorrect return tables are restricted automatically.

Can you claim ITC on Table 4(D) invoices?

Under Section 16(2)(ba) of the CGST Act, a taxpayer can take credit only if the details communicated under Section 38 have not been restricted. This statutory requirement operates alongside Rule 36(4):

“No input tax credit shall be availed by a registered person in respect of invoices or debit notes the details of which are required to be furnished under sub-section (1) of section 37 unless the details of input tax credit in respect of such invoices or debit notes have been communicated to the registered person in FORM GSTR-2B.” Notification 40/2021-Central Tax and Notification 19/2022-Central Tax, CBIC

Because the portal communicates these entries specifically as restricted credit, claiming them in your monthly return directly breaches Section 16(2)(ba) and Rule 36(4).

The consequence of an override: Rule 88D and DRC-01C

When you edit Table 4(A)(5) upward to include amounts from Table 4(D), the system flags the difference. If that excess credit exceeds the notified threshold, the portal generates an automated intimation in Form GST DRC-01C Part A under Rule 88D.

Under the GSTN advisory on DRC-01C, you must respond within seven days:

1. Option 1 (Pay): Deposit the excess credit availed with interest under Section 50 at 18% per annum using Form GST DRC-03.
2. Option 2 (Explain): Submit a detailed justification in Form GST DRC-01C Part B showing why the variance occurred.

If you fail to reply within seven days, Rule 59(6) stops you from filing outward returns in GSTR-1 or IFF for subsequent periods. For full instructions on drafting explanations, see our guide on DRC-01C ITC mismatch notice reply.

How to fix Table 4(D) mismatches in practice

When an invoice lands in Table 4(D), your resolution depends entirely on the root cause:

Fix 1: Correcting place of supply errors

If the supplier accidentally selected their own state instead of your branch location, contact the vendor right away. The supplier can file an amendment in Table 9A of their next GSTR-1, or current GSTR-1A, to rectify the place of supply and GSTIN. Once that amendment is submitted, the record moves into Table 4(A) of your subsequent GSTR-2B, allowing you to take credit legitimately.

Fix 2: Handling hotel and travel bills

For hotel stays, passenger transport, or venue rentals in another state, the place of supply under Section 12 of the IGST Act remains the property or event location. In those circumstances, the vendor is legally obligated to levy local CGST and SGST. If your business has no registration in that jurisdiction, the credit is permanently ineligible. You cannot ask the vendor to change the charge to IGST.

Fix 3: Booking ineligible GST in accounting ledgers

When credit cannot be claimed, do not keep the GST amount sitting in your input tax ledger. Transfer the tax directly to the relevant expense account, such as Travel Expense or Professional Fees, or add it to the asset purchase cost. This cleans up your balance sheet and removes unrecoverable tax assets.

For slight rounding variances during monthly checks, read our reference on round-off mismatch in GSTR-2B reconciliation.

Worked example: resolving Table 4(D) items

We checked this process with Orion Solutions Private Limited, a consulting firm registered in Bengaluru, Karnataka with GSTIN state code 29. During September reconciliation, the accounts team reconciled ₹3,68,000 of input tax credit recorded in their purchase register.

Here is how Orion Solutions handles this filing on the portal:

• Eligible claims: The company claims ₹3,00,000 for INV-104 and INV-288 under Table 4(A)(5). This matches the auto-populated figure from GSTR-2B.
• Hotel expense: The ₹18,000 tax for MUM-441 auto-populates in Table 4(D)(2). Orion Solutions does not add it to Table 4(A). In accounting software, ₹18,000 gets transferred from GST Input to Travel Expense.
• Supplier error: The ₹50,000 tax for CHN-902 was misreported by the Chennai vendor with place of supply 33 for Tamil Nadu rather than 29 for Karnataka. Orion Solutions leaves it in Table 4(D)(2) for now and holds ₹50,000 from vendor dues until the vendor amends GSTR-1.
• Notice prevention: Total credit claimed in Table 4(A) stays at ₹3,00,000. No red alert appears on the portal, and no DRC-01C notice gets generated.

Vendor communication template

Use this letter to notify suppliers whose invoices landed in Table 4(D) due to incorrect state details:

Related guides

• GSTR-2B reconciliation: complete guide to ITC matching
• GSTR-1 vs GSTR-2B mismatch: causes, investigation and fixes
• GSTR-2B tax amount mismatch: why the tax differs and how to fix it
• Invoices in GSTR-2B but not in my books: how to investigate them

Frequently asked questions

Last checked: 14 October 2026. Sources: CBIC CGST Act Section 16, GSTN GSTR-3B User Manual, GSTN Advisory on Form GST DRC-01C.