Every accountant in India faces a tight schedule between the 14th and the 20th of the month. You must match hundreds of purchase bills against government data, trace missing supplier credits, and compute net tax payable before the filing deadline. Guessing or taking provisional credit is no longer permitted under the law. Having a fixed monthly checklist prevents cash flow leakage and protects your business from mismatch notices.
Monthly calendar and filing milestones
The reconciliation cycle runs on four specific calendar milestones set by the Goods and Services Tax Rules:
- 11th of the month: Due date for monthly suppliers to file Form GSTR-1, as prescribed under the GSTN GSTR-1 user manual. Invoices filed by this date form the bulk of your inward supplies.
- 13th of the month: Cutoff date for quarterly suppliers under the QRMP scheme to submit their outward records using the Invoice Furnishing Facility (IFF), per Rule 59(2) of the CGST Rules.
- 14th of the month: The GST portal auto-generates your static GSTR-2B statement for the previous tax period, confirmed in the GSTN return guide. This statement fixes the maximum input tax credit available for the month.
- 20th of the month: Statutory deadline for monthly taxpayers to discharge tax liability and file Form GSTR-3B under Rule 61(1)(i) of the CGST Rules.
Step 1: lock your purchase register and export data
Before opening the GST portal on the 14th, ensure your internal books of accounts are locked for the preceding month. If entries are continually added while matching, your closing figures will deviate from the final tax return.
- Post all pending purchase vouchers, freight bills, debit notes, and expense invoices into your accounting software (Tally Prime, Zoho Books, Busy, or SAP).
- Verify that reverse charge entries are tagged properly with the supplier GSTIN.
- Export your purchase register to an Excel or CSV file containing GSTIN, Trade Name, Invoice Number, Invoice Date, Taxable Value, CGST, SGST, and IGST amounts.
- Check that invoice numbers in your accounting records match the supplier bills without arbitrary prefix changes. Under Rule 46(b) of the CGST Rules, an invoice number can contain up to 16 characters consisting of letters, numerals, hyphens, and slashes.
Step 2: download GSTR-2B from the GST portal
On or after the 14th morning, log in to the GST common portal to obtain your official inward statement.
- Go to Services > Returns > Returns Dashboard on the portal menu.
- Select the financial year and the relevant return filing period, then click Search.
- Under the Auto-drafted ITC Statement GSTR-2B tile, click Download.
- Download both the Excel file and the JSON file. The Excel file contains dedicated sheets for B2B, B2BA amendments, credit or debit notes (CDNR), and amended notes (CDNRA). The JSON file allows browser tools to process line items without formatting errors.
Remember that under Section 16(2)(aa) of the CGST Act, credit is strictly contingent on the supplier furnishing the invoice in their statement of outward supplies and communicating it to you in GSTR-2B. Under Rule 36(4) of the CGST Rules, there is zero room for provisional credit.
Never take unreflected credit: If a vendor bill is in your purchase register but absent from GSTR-2B, you cannot legally claim it in Table 4 of GSTR-3B. Claiming it triggers an intimation in Form DRC-01C under Rule 88D, requiring tax payment with interest or a formal explanation within seven days.
Step 3: categorise matching results into four clear buckets
Compare every invoice in your purchase register against the downloaded GSTR-2B line by line. Group each document into one of four distinct buckets:
- Bucket 1 (Exact match): Invoice number, date, GSTIN, taxable amount, and tax split agree completely. These are approved for immediate credit.
- Bucket 2 (Value mismatch): The invoice appears in GSTR-2B, but the tax amount or taxable value differs from your ledger. This often occurs due to round-off practices, freight charges omitted by the vendor, or data entry typos.
- Bucket 3 (Missing in 2B): The bill exists in your books, but the vendor failed to file GSTR-1 or filed late after the 11th. You must defer this credit to a subsequent tax period.
- Bucket 4 (In 2B but missing in books): The supplier reported an invoice against your GSTIN that you have not booked. This could indicate goods still in transit, an advance billing, or an incorrect GSTIN entered by the supplier.
Step 4: verify Invoice Management System records
With the rollout of the Invoice Management System (IMS) on the portal, recipients have active controls over inward invoices. According to the GSTN advisory and FAQ on IMS, you can take one of three actions on invoices filed by your suppliers:
| IMS action | When to select | Impact on monthly GSTR-2B |
|---|---|---|
| Accept | Document is correct, goods or services received, eligible under Section 16 | Flows directly into eligible ITC in GSTR-2B and GSTR-3B |
| Reject | Wrong GSTIN, duplicate invoice, or fraudulent supply | Excluded completely from GSTR-2B; supplier gets intimation to correct |
| Pending | Goods in transit, partial delivery, or value under commercial dispute | Excluded from current 2B; remains on IMS dashboard for future action |
If you take no active action in IMS, the portal treats saved records as accepted by default. If you make changes in IMS after the 14th, click the recompute GSTR-2B button on the dashboard before filing your GSTR-3B return.
Worked rupee example with reconciliation statement
Consider an engineering firm, Apex Precision Works, preparing its monthly filing for September 2026. Apex has ₹5,20,000 total ITC recorded in its purchase register across 15 vendor bills. Here is how the accountant reconciles the numbers on 15 October 2026:
| Invoice ref | Supplier name | Books tax | GSTR-2B tax | Variance | Action taken |
|---|---|---|---|---|---|
| INV-801 | Steel Alloys Ltd | ₹2,50,000 | ₹2,50,000 | ₹0 | Matched: claim in Table 4(A)(5) |
| INV-802 | National Power Tools | ₹90,000 | ₹90,000 | ₹0 | Matched: claim in Table 4(A)(5) |
| INV-803 | Metro Industrial Gases | ₹65,000 | ₹0 | ₹65,000 | Supplier missed GSTR-1: defer ITC, hold payment |
| INV-804 | Rapid Freight Carriers | ₹35,000 | ₹35,000 | ₹0 | Goods in transit: mark Pending in IMS |
| INV-805 | Apex Office Supplies | ₹40,000 | ₹40,000 | ₹0 | Blocked car lease under s.17(5): reverse in 4(B)(1) |
| INV-806 | Delta Bearings (Reclaim) | ₹40,000 | ₹0 | -₹40,000 | Rule 37 cleared vendor: add to 4(A)(5) & 4(D)(1) |
Let us look at how the arithmetic translates into the monthly return:
- Gross eligible credit appearing in GSTR-2B: ₹2,50,000 + ₹90,000 + ₹40,000 = ₹3,80,000. (Note that INV-804 was marked Pending in IMS, so the portal excludes its ₹35,000 tax from 2B).
- Reclaimed credit from earlier Rule 37 vendor payment: ₹40,000 on INV-806.
- Total claimed in Table 4(A)(5): ₹3,80,000 + ₹40,000 = ₹4,20,000.
- Permanent reversal under Section 17(5) in Table 4(B)(1): ₹40,000 on INV-805.
- Net ITC available in Table 4(C): ₹4,20,000 minus ₹40,000 = ₹3,80,000.
- Disclosure in Table 4(D)(1): ₹40,000 to explain the reclaim.
By preparing this working paper, the accountant ensures Table 4(C) reflects the exact legal credit entitlement while maintaining an airtight defense against automated notices.
Step 5: file Table 4 in GSTR-3B accurately
When entering figures in Form GSTR-3B on the portal, follow the mapping defined in the GSTN GSTR-3B manual:
| Table name | Description | What goes here |
|---|---|---|
| Table 4(A)(5) | All other ITC | Auto-populated GSTR-2B amount plus reclaims from earlier periods |
| Table 4(B)(1) | Reversal as per Rule 38, 42, 43 and Section 17(5) | Permanent reversals like motor vehicles, food, personal expenses |
| Table 4(B)(2) | Reversal: Others | Temporary reversals, such as unpaid vendor bills exceeding 180 days |
| Table 4(C) | Net ITC available | Calculated automatically as Table 4(A) minus Table 4(B) |
| Table 4(D)(1) | ITC reclaimed | Informational entry matching re-availed credits included in 4(A)(5) |
For more details on how GSTR-2B populates each row of your monthly return, consult our guide on GSTR-3B meaning and format. If you are re-availing credit on vendor payments cleared after 180 days, review the input tax credit reclaim procedure to make sure your Table 4(D)(1) entries match your ledger.
Step 6: communicate with defaulting vendors
Reconciliation is not complete until you address missing invoices with your suppliers. Every missing invoice represents blocked working capital.
Send a standard reminder notice to vendors whose invoices were omitted from GSTR-1 by the 11th:
Common mistake with credit notes: Always verify that supplier credit notes in GSTR-2B are recorded in your books. If a vendor issues a credit note that you fail to book, your net ITC claim will exceed GSTR-2B, exposing you to Rule 88D intimations. See our guide on DRC-01C mismatch notice reply steps.
Related guides
- GSTR-2B reconciliation: complete guide to ITC matching
- How accountants can automate GSTR-2B reconciliation
- GSTR-2B vendor wise reconciliation guide
- GSTR-2B reconciliation for large businesses
Frequently asked questions
When is GSTR-2B generated every month?
GSTR-2B is generated on the 14th of each month for monthly return filers. It compiles inward supplies reported by suppliers in their GSTR-1, GSTR-1A, or IFF filed up to the 13th.
Can you take ITC on an invoice missing from GSTR-2B?
No. Under Section 16(2)(aa) of the CGST Act and Rule 36(4), no input tax credit can be claimed unless the invoice details are furnished by the supplier in GSTR-1 or IFF and reflected in GSTR-2B.
What happens if you mark an invoice as Pending in IMS?
An invoice marked as Pending in IMS stays on the IMS dashboard and is excluded from that month's GSTR-2B and GSTR-3B. It will not flow into Table 4 until accepted in a later month.
How do you avoid getting a DRC-01C notice?
Ensure that the input tax credit claimed in Table 4(A)(5) of GSTR-3B matches your GSTR-2B statement. If you are re-availing previously reversed credit, report the exact reclaimed amount in Table 4(D)(1).
Reconcile your monthly GSTR-2B in seconds
Tired of manual VLOOKUP errors between the 14th and the 20th? gstr2bmatch.in is a free GSTR-2B reconciliation tool for Indian accountants, small CAs and SMB owners. It reads their GSTR-2B and purchase register in the browser and shows, with rupee figures, which invoices are missing, mismatched or stuck in IMS Pending. Your GSTR-2B and purchase register files are read in your browser and never uploaded to any server.
Last checked: 14 October 2026. Sources: CBIC Section 16 CGST Act, GSTN GSTR-3B User Manual, GSTN GSTR-1 User Manual, CBIC Notification 40/2021-Central Tax (Rule 36(4)).