Input tax credit is what GSTR-2B says it is
Credit can only be claimed for invoices your suppliers have reported. Reconciling every month is the only way to keep it.
Input tax credit on purchases can be claimed only to the extent the supplier's invoices appear in your GSTR-2B for the period. An invoice the supplier has not reported, or has reported late or incorrectly, gives no credit that month, however genuine the purchase.
Since October 2024 the Invoice Management System on the portal lets recipients accept, reject or keep pending each supplier invoice before GSTR-2B is finalised.
Where the credit goes missing
Suppliers who file late, invoices recorded against the wrong GSTIN, and amendments that never reach the portal. Each is small; together they can be a meaningful share of the credit a business believes it has.
What to do
Reconcile purchase records against GSTR-2B every month, before filing GSTR-3B. Follow up with suppliers whose invoices are missing while the period is still open. Credit for a financial year can be claimed only up to 30 November of the following year.
General information, current at the date shown. It is not advice on your circumstances; write to us before acting on it.