When the input tax credit in your purchase register does not match GSTR-2B, the difference almost always traces to a supplier who has not filed, an invoice belonging to the wrong tax period, an invoice never uploaded in GSTR-1, or a wrong GSTIN. GSTR-2B is the auto-drafted statement that the law treats as the authenticated record of the credit available to you, so the reconciliation you do against it decides how much you can safely claim. This page sets out the reconciliation, the supplier's responsibility, and the notices that follow a persistent mismatch.
When this matters
This applies to every registered buyer: traders, manufacturers and service providers who claim input tax credit. It matters when you are preparing GSTR-3B for a period, when you receive a scrutiny or mismatch communication from the department, and at the end of a financial year when the time limit for availing credit looms. Our GST and tax practice, the corporate compliance service and the tax formats library cover the reconciliation and the replies involved; contact us for a review of a specific notice.
What GSTR-2B is and what it contains
GSTR-2B is an auto-drafted, static statement for a tax period. It is generated from the GSTR-1, GSTR-5 and GSTR-6 filed by your suppliers, and from the credit and debit notes they report. It shows, invoice by invoice, the credit that is available, the credit that is not available, and the credit that is pending because the supplier has not filed. Because it is static, it reflects the supplier's filings as at the date of generation; a supplier who files later appears only in a subsequent period's statement, not by updating the earlier one.
Why the two do not match
- The supplier has not filed GSTR-1. The invoice sits in your purchase register but not in GSTR-2B, so the credit is shown as not available until the supplier files.
- Wrong tax period. An invoice dated in one month is reported by the supplier in another, so it lands in a different statement than the one you booked it in.
- Invoice never uploaded. The supplier omitted the invoice, or reported it under a different document series, or treated the supply as exempt or non-GST.
- Wrong GSTIN. Your GSTIN was quoted wrongly by the supplier, or an old registration of yours was used, so the credit is directed to the wrong recipient.
- Value or tax difference. The taxable value or rate reported differs from the invoice, for instance a rate change or a rounding or inter-state/intra-state error.
- Notes not accounted for. Credit or debit notes, or amendments, that one side has recorded and the other has not.
Step by step: reconciling the purchase register with GSTR-2B
- Pull both data sets for the period. Download GSTR-2B and export your purchase register to a spreadsheet.
- Match invoice by invoice. Use the supplier GSTIN plus the invoice or document number as the key, then compare taxable value, tax amount and tax head. Flag only the differences.
- Classify each difference. Separate the three buckets: in your books but not in GSTR-2B, in GSTR-2B but not in your books, and present in both but with differing values.
- Chase the missing invoices. Give the supplier the list and ask them to report the invoice in their next GSTR-1. Follow up in writing, because that correspondence is your evidence of diligence.
- Claim only what is eligible. The conditions in section 16 of the CGST Act 2017, read with Rule 36(4) of the CGST Rules, restrict the credit to invoices communicated in the auto-generated statement. Claiming more invites a demand.
- Defer to the correct period. If a genuine invoice is expected to appear next period, do not force the credit now. Note it and claim it when it appears, within the time limit.
The supplier's responsibility
The credit is communicated only when the supplier reports the invoice. That makes timely filing by the supplier a business obligation you should build into your vendor terms. Where a supplier repeatedly defaults, the practical remedies are to withhold payment of the tax component until the invoice appears in GSTR-2B, to obtain a written confirmation of filing, and, in serious cases, to stop dealing with that vendor. The department recovers the tax from the supplier, but the immediate hit is to your credit.
The notices that follow a mismatch
A gap on the portal is often the start of correspondence. The common communication is a scrutiny notice under section 61 of the CGST Act 2017 in Form ASMT-10, asking you to explain the discrepancy; you reply in Form ASMT-11 and the officer may pass an order in Form ASMT-12. Where the department proposes a demand for wrongly availed or utilised credit, it issues the notice prescribed for the demand, generally under sections 73 and 74 for the periods to which they apply, and the reply is filed in Form DRC-01A or the response form with the supporting reconciliation. Never ignore these notices; a mismatch that is explained with the reconciliation and the invoices is usually resolved, while silence becomes a demand.
Records to preserve
- Purchase register, GSTR-2B downloads and your reconciliation working papers for each period.
- Tax invoices and credit or debit notes, in full and legible.
- Transport documents, e-way bills, lorry receipts and proof of payment, which establish that the supply was real and is what protects a genuine credit.
- Correspondence with suppliers asking them to report pending invoices.
- Copies of every reply, ASMT-11, DRC form and acknowledgement filed.
Timelines and common mistakes
Credit for a financial year can be availed only up to the date prescribed in section 16(4), generally the end of November following the end of that year or the filing of the annual return, whichever is earlier. Two mistakes recur: claiming credit for a supplier's unfiled invoice and hoping to regularise later, and ignoring the annual reconciliation until the deadline. Under section 155 the burden of proving that you are entitled to the credit lies on you, so the paper trail matters more than the entry in the books.
Common questions
Can I claim credit if the invoice is not in GSTR-2B?
The conditions for taking credit are tied to the invoice being communicated in the auto-generated statement. Until the supplier reports it, the credit is not safely claimable and a claim is exposed to a demand.
Who is liable if the supplier does not file?
The supplier owes the tax and interest on their default, and the department pursues them. As the buyer, however, your credit is blocked in the meantime, which is why vendor discipline is part of your own compliance.
How do I answer a scrutiny notice on credit?
File your reply with the period-wise reconciliation, the matching GSTR-2B entries, the invoices that are genuinely available and the ones you are reversing. Where credit was wrongly availed, reverse it with interest to close the matter without further penalty.
What if the difference is only in value, not in eligibility?
A value or rate difference is usually corrected by claiming the lower of the two figures and reconciling the rest, or by asking the supplier to issue an amendment. It should still be documented in your working papers.
FileX Advocates & Legal Consultants, Kolkata, drafts and files these matters before the Calcutta High Court, City Civil and Sessions courts, magistrate, family, consumer and tribunal forums. Call +91 7439811422 or WhatsApp us for a free first consultation.