Reconciling inward supplies is a monthly task for accountants before filing Form GSTR-3B. When the net input tax credit calculated from your purchase books does not align with the net credit available in Form GSTR-2B, claiming the unverified difference creates compliance risks. Understanding how these net credit numbers are formed prevents disputes with tax authorities.
How Table 4C net credit is computed
Under CGST Rules Rule 60(7), Form GSTR-2B is an auto-generated statement of input tax credit made available to recipients on the 14th of the following month. The portal aggregates data reported by suppliers in their GSTR-1, GSTR-1A, or Invoice Furnishing Facility (IFF).
In Form GSTR-3B, Table 4(C) reflects Net ITC Available. Per the GSTN GSTR-3B filing manual, Table 4(C) is a calculated field derived by subtracting reversals in Table 4(B) from total credit available in Table 4(A):
Net ITC Available Table 4(C) = Table 4(A) - [Table 4(B)(1) + Table 4(B)(2)]
In Form GSTR-2B, net credit calculations factor in outward B2B invoices alongside credit notes and amendments from suppliers. If a supplier uploads a credit note or issues a downward amendment, your net credit drops. In contrast, while our guide on GSTR-2B Table 4D mismatch covers ineligible credit restricted by place of supply or time limits under Section 16(4), Table 4(C) discrepancies deal directly with active credit balances that reduce or alter your net claim.
Common mistake: Comparing only gross invoice totals instead of net figures. A missing supplier credit note in your books leads you to claim higher net ITC in GSTR-3B than GSTR-2B permits, which prompts automated mismatch notices.
Why Table 4C mismatches occur
Differences between your purchase ledger and GSTR-2B net credit generally stem from specific timing or reporting gaps:
- Supplier delays in GSTR-1 or IFF: If a supplier files after the due date, the invoice shifts to the next month's GSTR-2B statement.
- Credit notes declared by suppliers: Suppliers upload credit notes under Table 9B of GSTR-1 that your accounting team has not yet recorded or approved.
- Data entry errors: Taxable value, tax rate, or GSTIN typos entered in your internal accounting software.
- E-invoice adjustments: As outlined in the GSTN GSTR-1 guidelines, details generated via the Invoice Registration Portal (IRP) auto-populate into supplier return tables 4A, 4B, 4C, 6B, and 6C. Modifications made by suppliers before return submission can alter the final figures.
The risk of overriding auto-drafted ITC
Under Section 16(2)(aa) of the CGST Act and CGST Rules Rule 36(4), no input tax credit can be availed unless details of the invoice or debit note have been furnished by the supplier in GSTR-1 or IFF and communicated to the recipient in Form GSTR-2B.
Although the portal allows taxpayers to edit Table 4 fields during GSTR-3B preparation, any upward revision displays a red warning. In addition, under Rule 88D of the CGST Rules, when ITC availed in Form GSTR-3B exceeds ITC available in Form GSTR-2B beyond the notified threshold, the taxpayer receives an automated intimation in Part A of Form GST DRC-01C.
Per Rule 88D, the taxpayer is allowed a period of seven days to either pay the excess credit amount along with interest via Form GST DRC-03 or explain the reasons for the difference in Part B of Form GST DRC-01C. For an in-depth breakdown of return comparisons, consult our guide on GSTR-2B vs GSTR-3B ITC reconciliation.
Notice risk: Failure to respond to Form GST DRC-01C within seven days restricts subsequent GSTR-1 and IFF filing under Rule 59(6) of the CGST Rules.
Worked example: resolving a Table 4C variance
Consider Beta Enterprises reconciling October 2026 inward supplies. Their internal purchase register records gross eligible ITC of ₹1,80,000 and recognized supplier credit notes of ₹10,000, giving an expected net ITC of ₹1,70,000.
When the GSTR-2B statement is downloaded on 14 November 2026, the numbers show the following breakdown:
| Component | Purchase register | Form GSTR-2B | Variance | Status and action |
|---|---|---|---|---|
| Eligible ITC, Table 4(A) | ₹1,80,000 | ₹1,62,000 | ₹18,000 | Supplier filed late; defer claim to next month |
| Reversals and credit notes, Table 4(B) | ₹10,000 | ₹15,000 | ₹5,000 | Unrecorded supplier credit note; record in books |
| Net ITC Available, Table 4(C) | ₹1,70,000 | ₹1,47,000 | ₹23,000 | Claim ₹1,47,000 in GSTR-3B to prevent DRC-01C |
Step-by-step formula check:
Net ITC in purchase register = ₹1,80,000 - ₹10,000 = ₹1,70,000.
Net ITC in Form GSTR-2B = ₹1,62,000 - ₹15,000 = ₹1,47,000.
Total variance to adjust = ₹1,70,000 - ₹1,47,000 = ₹23,000.
Beta Enterprises must claim ₹1,47,000 in Table 4(C) of GSTR-3B for October. Claiming the internal figure of ₹1,70,000 would create an excess claim of ₹23,000, triggering an automated Rule 88D notice.
Step-by-step resolution process
- Export files: Download the GSTR-2B Excel file from the portal and export your purchase register for the period.
- Match line items: Run an invoice-by-invoice comparison checking GSTIN, document number, date, and tax amounts.
- Identify missing supplier credits: Check whether suppliers issued credit notes in GSTR-2B that were omitted in your ledger.
- Follow up on delayed invoices: Notify vendors whose invoices are missing so they file their returns in the upcoming tax period.
- File GSTR-3B: Ensure the net credit declared in Table 4(C) does not exceed eligible figures auto-drafted from GSTR-2B.
Frequently asked questions
What is Table 4C in GSTR-2B and GSTR-3B?
In GSTR-3B, Table 4(C) represents Net ITC Available, calculated as Table 4(A) minus Table 4(B). In GSTR-2B summary, it reflects the net credit after factoring in credit notes and debit notes reported by suppliers.
Can I manually change the ITC auto-populated in GSTR-3B?
Yes, Table 4 fields in GSTR-3B remain editable on the portal. However, editing figures upward triggers a red warning box, and claiming more ITC than GSTR-2B can prompt a system notice under Rule 88D in Form GST DRC-01C.
How much time do I have to respond to Form GST DRC-01C?
Under Rule 88D, you have a period of seven days to either pay the excess ITC claimed with applicable interest via Form GST DRC-03 or submit an explanation in Part B of Form GST DRC-01C.
Check your own GSTR-2B
Match your purchase register against Form GSTR-2B in seconds. Identify invoice gaps, tax differences, and supplier credit note variances instantly. Your GSTR-2B and purchase register files are read in your browser and never uploaded to any server.
Last checked: 22 October 2026. Sources: CBIC CGST Rule 60, GSTN GSTR-3B Manual, GST Council Notification 38/2023-CT (Rule 88D).