GSTR 3B Table 4D: Ineligible ITC Reporting

Many accountants confuse Table 4B reversals with Table 4D ineligible reporting in Form GSTR-3B. For a comprehensive overview of the return layout, consult our guide on GSTR-3B tables explained. While Table 4B directly reduces the net credit credited to your electronic credit ledger in Table 4C, Table 4D acts as an informational disclosure table. Knowing where each transaction belongs is necessary to keep your monthly return aligned with statutory rules.

Difference between Table 4B reversal and Table 4D disclosure

Form GSTR-3B calculates net input tax credit using a specific formula defined in the GSTN Create and Submit GSTR-3B User Manual: Table 4C equals Table 4A minus Table 4B. Because of this formula, any entry in Table 4B directly reduces the credit available to pay outward tax liability.

Per CBIC Circular No. 170/02/2022-GST, all input tax credit reflected in Form GSTR-2B first flows into the respective sub-tables of Table 4A. If any of that credit is ineligible, it must be addressed through Table 4B:

• Table 4B(1): Reversals that are absolute and non-reclaimable, including credit blocked under Section 17(5) of the CGST Act and banking reversals under Rule 38.
• Table 4B(2): Temporary reversals that can be reclaimed later, such as unpaid supplier invoices beyond 180 days under Rule 37.
• Table 4D: Informational disclosures of ineligible credit that do not enter Table 4A or alter Table 4C net credit.

Structure of GSTR-3B Table 4D

Table 4D is subdivided into two distinct lines under the statutory return structure:

1. Table 4D(1) (ITC reclaimed): This field captures previously reversed reclaimable input tax credit that is being re-availed in the current tax period under statutory rules.
2. Table 4D(2) (Ineligible ITC under section 16(4) and place of supply restrictions): As confirmed in the GSTN GSTR-3B User Guide, Table 4D(2) is auto-populated from Form GSTR-2B. It reports inward supplies where credit is restricted because the supplier furnished invoice details after the cutoff date under Section 16(4), or where the recipient is ineligible due to place of supply rules.

Statutory blocked credit under Section 17(5)

The opening words of Section 17(5) of the CGST Act provide that input tax credit is blocked notwithstanding Section 16(1). When such invoices appear in GSTR-2B, they arrive in Table 4A(5) and must be permanently reversed in Table 4B(1). Common blocked items under Section 17(5) include:

• Section 17(5)(a): Motor vehicles for transportation of persons having approved seating capacity of up to thirteen persons, subject to statutory business exceptions.
• Section 17(5)(b): Food and beverages, outdoor catering, beauty treatment, and health services, unless provided under statutory obligation.
• Section 17(5)(c) and (d): Works contract services and goods or services received for construction of immovable property on own account, other than plant and machinery as defined in Explanation 1 to Section 17.
• Section 17(5)(h): Goods lost, stolen, destroyed, written off, or disposed of by way of gift or free samples.

Banking companies and financial institutions opting for the proportionate credit mechanism under Rule 38 of the CGST Rules must also reverse 50 percent of their qualifying credit in Table 4B(1) as an absolute reversal.

Worked example: Table 4B reversal versus Table 4D disclosure

Consider Omkar Engineering Private Limited, an automotive component manufacturer registered in Maharashtra. During October 2026, the company receives three inward invoices reflected in its monthly GSTR-2B statement:

• Invoice 101: Raw steel materials for manufacturing, IGST ₹50,000 (eligible business credit).
• Invoice 102: Annual maintenance contract for office passenger car, CGST ₹9,000 and SGST ₹9,000, totaling ₹18,000 (blocked credit under Section 17(5)(a)).
• Invoice 103: Supplier invoice where the supplier's state and place of supply do not permit credit under place of supply rules, IGST ₹12,000 (auto-populated in GSTR-2B as ineligible credit).

The mathematical computation for the tax period proceeds as follows:

Table 4A total available credit = ₹50,000 + ₹18,000 = ₹68,000.

Table 4B permanent reversal under Table 4B(1) = ₹18,000.

Table 4C net credit available = Table 4A minus Table 4B = ₹68,000 - ₹18,000 = ₹50,000.

Table 4D(2) disclosure = ₹12,000. Notice that this ₹12,000 does not enter Table 4A and does not alter the Table 4C net credit of ₹50,000.

Consequences of incorrect reporting under Rule 88D

Under Rule 88D of the CGST Rules, when input tax credit claimed in Form GSTR-3B exceeds the credit available in Form GSTR-2B by the notified threshold, the portal issues an electronic intimation in Form DRC-01C. If an accountant erroneously reports blocked credit in Table 4D instead of Table 4B(1), Table 4C net credit will exceed eligible GSTR-2B credit.

Upon receiving Form DRC-01C, the taxpayer is allowed a statutory period of seven days to either pay the excess credit with applicable interest or furnish reasons for the difference on the common portal. In addition, under Rule 59(6) of the CGST Rules, failure to respond to an active Form DRC-01C intimation blocks the subsequent filing of Form GSTR-1 or use of the Invoice Furnishing Facility.

Frequently asked questions

Last checked: 28 October 2026. Sources: CBIC Section 17 CGST Act, GSTN Create and Submit GSTR-3B Manual.