To claim GST input tax credit (ITC) in India, first confirm that the purchase meets the legal conditions, reconcile it with your books and GSTR-2B, then report the eligible amount in the correct GSTR-3B Table 4 category. An invoice or a GSTR-2B entry alone does not prove that credit is allowable.
Check whether the purchase qualifies for ITC
Section 16 of the Central Goods and Services Tax (CGST) Act sets out the general entitlement and conditions; section 17 covers apportionment and blocked credits. Treat each document as a separate eligibility decision, not an automatic claim.
- Registration and business use: The recipient must be a registered person, and the goods or services must be used or intended for use in the course or furtherance of business. Personal use does not qualify as business credit. For mixed use, credit is restricted to the business-use portion.
- Valid supporting document: Check that you hold the prescribed invoice, debit note or other tax-paying document. Section 16 also requires supplier-furnished invoice or debit-note details to be communicated to the recipient. A missing GSTR-2B entry should prompt reconciliation and a check of the applicable statute and rules, not an assumption that supplier reporting conditions can be ignored.
- Receipt and return: Confirm that you have received the goods or services and furnished the applicable section 39 return. For goods delivered in lots or instalments, the Act includes a last-lot condition.
- Taxable versus exempt supplies: If inputs or services relate partly to exempt supplies, credit is restricted under the applicable apportionment rules. Taxable supplies include zero-rated supplies for this purpose.
- Blocked-credit rules: Section 17(5) blocks credit for specified categories, subject to statutory exceptions. Check the provision against the actual purchase; a broad category label alone may not settle whether an exception applies.
- Reverse charge: Where tax is payable by the recipient under reverse charge, account for and pay that tax as applicable before reporting the related credit. The portal maps this credit to a distinct GSTR-3B category.
- Payment to supplier: If you do not pay the supplier the value plus tax within 180 days from the invoice date, section 16 generally requires payment of an amount equal to the ITC availed, with applicable interest, in the prescribed manner. Credit may be taken again after payment. Check prescribed mechanics and exceptions for the transaction.
Read the current text of CGST Act sections 16 and 17 alongside the applicable rules and notifications. The statutory text and rules govern; this checklist is not a substitute for applying them to the transaction.
Check ITC in GSTR-2B
GSTR-2B is a static, read-only, auto-drafted ITC statement based on supplier filings, ISD data and import information. The recipient does not file GSTR-2B. Use it to inform the relevant GSTR-3B entries, not as a complete ruling on legal eligibility. The GST Portal says it “should be used by taxpayers to take the right input tax credit in respective sections of Form GSTR-3B.”
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According to the GST Portal’s GSTR-2B FAQ, the statement marks items as “not available” in specified scenarios; other legal restrictions may not be flagged. Conversely, an entry appearing in the statement does not remove the need to check business use, receipt, blocked-credit provisions, apportionment or payment conditions.
Reconcile GSTR-2B with your purchase register
Review the statement for each tax period against your purchase register and supporting documents. Include invoices, debit notes, credit notes, amendments, ISD items and imports. A practical reconciliation log makes it possible to trace the decision from source document to return.
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- Gather the period’s records. Download or review GSTR-2B, the purchase register, invoices and other supporting documents.
- Match each item. Compare document identifiers, supplier, taxable value and tax amounts. Record whether the entry matches, is missing, or needs investigation.
- Decide eligibility independently. Check business purpose, taxable or exempt allocation, blocked-credit rules, place-of-supply treatment, receipt, supplier reporting and any payment or deadline condition.
- Document the treatment. Record the eligible amount, reason for exclusion or adjustment, intended GSTR-3B table, claim period and any reversal or reclaim status.
- Resolve mismatches. Follow up with the supplier where a document is missing or incorrect and seek correction through the appropriate supplier filing process. If the item later appears, verify its status in the log so it is not claimed twice.
- Retain the trail. Keep invoices, reconciliation history, return workpapers and, where useful, the system-generated summary so a later review can follow the decision.
The GST Portal’s GSTR-2B advisory also directs taxpayers to reconcile the statement with their own records and books, avoid availing credit twice, reverse credit where required and pay reverse-charge tax.
Report eligible credit and reversals in GSTR-3B
Use the form and instructions applicable to the tax period. The GST Portal’s current mapping identifies these Table 4 categories:
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|---|---|---|
| Ordinary eligible inward supplies | Table 4(A)(5) | Claim only the amount supported by your eligibility review and reconciliation. |
| Reverse-charge credit | Table 4(A)(3) | Report after payment of the applicable reverse-charge tax. |
| Input Service Distributor (ISD) credit | Table 4(A)(4) | Match the item to the ISD information and supporting record. |
| Import credit | The relevant import row in Table 4(A) | Use the import entry and current form instructions; confirm the period’s mapping. |
| Reversals | The appropriate category in Table 4(B) | Classify the reason correctly and retain the calculation and supporting evidence. |
| Certain items identified as unavailable in GSTR-2B | Table 4(D)(2), where applicable | Follow the period’s form instructions for the specified items. |
These mappings are portal guidance, not a replacement for checking the live form. The portal says auto-populated values are editable, but an edit should be supported by your eligibility analysis and records. Verify the period-specific form and instructions because portal mappings and auto-population can change.
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Keep reversal and reclaim decisions linked
For every reversal, record its reason, amount, return period and whether a reclaim may be available. Reclaim depends on the facts and the event or condition that permits it under the applicable rules; do not treat every reversal as automatically reclaimable. When a later event changes the treatment, document it and check the current return instructions before reporting a reclaim.
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Monitor the general ITC time limit
As a general rule, section 16(4) bars ITC on an invoice or debit note after 30 November following the end of the relevant financial year, or furnishing the relevant annual return, whichever is earlier. The Act provides for special situations, including certain revoked registrations, so this is not an exception-free deadline. Check the current statutory provision, applicable notifications and the relevant return status for the specific case.
Maintain an auditable period log
At minimum, track the document and supplier, tax period, GSTR-2B match status, eligible amount, reason for any adjustment, claim table and period, reversal or reclaim status, and follow-up owner and date. This helps surface missing records and approaching deadlines before the return is filed.
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