Every monthly tax return requires balancing the purchase register with the tax credits communicated on the GST portal. When accountants prepare Form GSTR-3B, Table 4(A) auto-populates credit figures from the static GSTR-2B statement generated after the supplier filing cut-off date. Reconciling these line items invoice by invoice ensures that your business claims eligible credit without triggering automated system flags.
Statutory framework for Table 4A and GSTR-2B
The entitlement to input tax credit depends strictly on the supplier filing compliance under Section 16(2)(aa) of the CGST Act, which mandates that credit is available only if the supplier furnished invoice details in Form GSTR-1 or the Invoice Furnishing Facility (IFF) and communicated them to the recipient. In addition, Section 16(2)(b) of the CGST Act requires actual receipt of goods or services before credit can be availed.
Form GSTR-2B serves as the auto-drafted ITC statement under CGST Rules Rule 60(7). For regular monthly filers, GSTR-2B aggregates details filed by outward suppliers between the day following the previous due date and the current GSTR-1 due date. It establishes the legal benchmark against which outward tax claims are audited.
According to CBIC Circular No. 170/02/2022-GST, the entire credit available in Form GSTR-2B is brought into Table 4(A) of Form GSTR-3B. Any permanent ineligibility, such as blocked credit under Section 17(5) or exempt business reversals under Rule 42, must be accounted for by entering reversals in Table 4(B) rather than netting off Table 4(A) directly.
Mapping Table 4A sub-tables to GSTR-2B categories
Form GSTR-3B Table 4(A) is divided into five specific categories. Reconciling each category against the corresponding section in GSTR-2B prevents misclassification between domestic purchases, reverse charge liabilities, and import credits.
| GSTR-3B Table 4A row | Description | Source section in GSTR-2B | Reconciliation check |
|---|---|---|---|
| Table 4(A)(1) | Import of goods | ICEGATE bill of entry data (IMPG / SEZPG) | Verify bill of entry reference and customs duty payments. |
| Table 4(A)(2) | Import of services | Manual entry (Self-assessed) | Check foreign currency payments and reverse charge payment challans. |
| Table 4(A)(3) | Inward supplies liable to reverse charge | GSTR-2B Table 3 B2B RCM inward supplies | Confirm supplier GSTIN, tax paid in cash, and tax invoice receipt. |
| Table 4(A)(4) | Input service distributor credit | GSTR-2B ISD inward documents | Cross-check ISD invoice numbers and head office distribution ratios. |
| Table 4(A)(5) | All other ITC | GSTR-2B Table 3 B2B regular supplies and credit notes | Match purchase register against supplier-reported invoices and amendments. |
As documented in the GSTN GSTR-3B User Manual, Table 4(A)(5) for all other ITC is auto-populated on a net basis from Form GSTR-2B. When credit notes are issued by suppliers, the net credit reduces accordingly. Taxpayers can read more about overall comparison practices in our guide on GSTR-2B vs 3B ITC reconciliation and review statutory reversal formulas in ITC reversal Rule 42 common credit formula.
Common mistake: Editing Table 4(A)(5) upward to include missing vendor invoices without checking whether the vendor filed Form GSTR-1. Upward modification flags the field in red on the portal dashboard and triggers an automated mismatch notice.
Variance analysis between books, GSTR-2B, and Table 4A
A structured variance analysis groups discrepancies into four distinct categories. Understanding the root cause determines whether an accountant should claim the credit, withhold it, or follow up with suppliers.
- Timing differences: The vendor filed Form GSTR-1 after the cut-off date of the 11th or 13th of the month. The credit will appear in next month's GSTR-2B. Keep the invoice in a pending ledger and avail it in the subsequent tax period.
- Supplier reporting errors: The vendor entered an incorrect recipient GSTIN, reported B2B supply as B2C, or typed an incorrect invoice number. Request the vendor to amend the document in Form GSTR-1 or GSTR-1A.
- Goods in transit: The vendor reported the invoice on 30 October 2026, but the physical goods arrived at your warehouse on 2 November 2026. Under Section 16(2)(b), defer availing the credit until the month of physical receipt.
- Non-filing by supplier: The vendor collected GST on the commercial bill but omitted the invoice from their outward return entirely. Withhold vendor payments until the entry reflects in GSTR-2B.
Worked example: monthly variance analysis
Consider an enterprise, Bharat Auto Components, reconciling its purchase register for October 2026. The purchase register contains eligible domestic input tax credit of ₹5,20,000 across five invoices. The system-generated GSTR-2B auto-populates ₹4,30,000 in Table 4(A)(5).
| Invoice number | Supplier GSTIN | Books IGST | GSTR-2B IGST | Variance | Status and action |
|---|---|---|---|---|---|
| INV-101 | 27AAACB1111A1Z1 | ₹1,20,000 | ₹1,20,000 | ₹0 | Fully matched; claim in Table 4A(5) |
| INV-102 | 27AAACC2222B1Z2 | ₹1,50,000 | ₹1,50,000 | ₹0 | Fully matched; claim in Table 4A(5) |
| INV-103 | 29AAACD3333C1Z3 | ₹1,60,000 | ₹1,60,000 | ₹0 | Fully matched; claim in Table 4A(5) |
| INV-104 | 06AAACE4444D1Z4 | ₹50,000 | ₹0 | ₹50,000 | Supplier filed late; defer to next month |
| INV-105 | 24AAACF5555E1Z5 | ₹40,000 | ₹0 | ₹40,000 | Invoice omitted by vendor; follow up |
| Total | All suppliers | ₹5,20,000 | ₹4,30,000 | ₹90,000 | Avail ₹4,30,000; defer ₹90,000 |
The variance computation is:
Total book ITC (₹5,20,000) minus GSTR-2B available ITC (₹4,30,000) = Unmatched variance of ₹90,000.
If the accountant overrides the auto-populated figure and claims ₹5,20,000 in Table 4(A)(5), the excess claim of ₹90,000 triggers an intimation under Rule 88D.
Responding to DRC-01C mismatch intimations
Under CGST Rules Rule 88D, when the input tax credit availed in Form GSTR-3B exceeds the credit available in Form GSTR-2B by a specified percentage and monetary threshold, the system issues an automated intimation in Part A of Form GST DRC-01C.
As outlined in the GSTN DRC-01C Compliance Guide, the taxpayer has a statutory period of seven days to complete one of two actions:
- Pay the excess input tax credit availed, together with interest, using Form GST DRC-03.
- Submit an explanation in Part B of Form GST DRC-01C by choosing from predefined dropdown reasons (options 1 to 8), validating payment ARNs, or providing concise remarks up to 500 characters with supporting PDF documentation up to 500 KB.
Under Rule 59(6)(e) of the CGST Rules, failing to reply to a DRC-01C notice or pay the demanded sum blocks the filing of subsequent Form GSTR-1 or IFF outward statements. In addition, discrepancies that remain unresolved may prompt scrutiny proceedings under Section 61 of the CGST Act.
Frequently asked questions
Can Table 4A of GSTR-3B be edited manually if GSTR-2B shows a lower figure?
The portal permits manual editing of Table 4A tiles, but editing the figure upwards highlights the tile in red and displays a warning. Claiming ITC beyond GSTR-2B risks receiving an intimation under Rule 88D in Form GST DRC-01C.
How many days are allowed to respond to a Form GST DRC-01C notice?
Under Rule 88D, a taxpayer receives seven days to either pay the excess ITC amount with applicable interest through Form GST DRC-03 or explain the reasons for the variance in Part B of Form GST DRC-01C.
Does Table 4A in GSTR-3B include ineligible ITC under Section 17(5)?
Yes. Per CBIC Circular No. 170/02/2022-GST, the gross ITC available from GSTR-2B is populated into Table 4A, and permanent ineligible credits like Section 17(5) or Rule 42 are reversed under Table 4B(1).
Check your own GSTR-2B against books
Compare purchase registers against GSTR-2B data in seconds without manual spreadsheet formulas. 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 Tax Information Section 16, GSTN GSTR-3B Portal Manual.