In India, a purchase invoice by itself does not guarantee that your business can retain input tax credit (ITC). First check whether the supplier reported the invoice and it appears in your GSTR-2B. If it does appear but the supplier has not filed the matching GSTR-3B, Rule 37A sets a separate deadline for checking the supplier’s filing and, where required, reversing the credit.
These are two different supplier failures, with different rules and responses. Reconcile invoices individually, follow up with the supplier, and track the financial-year deadlines that apply to Rule 37A.
First identify what the supplier failed to do
The key distinction is whether the supplier failed to report the invoice or reported it but failed to file the corresponding GSTR-3B. Section 16(2)(aa) of the CGST Act makes supplier furnishing of invoice or debit-note details in the outward-supplies statement, and communication of those details to the recipient under section 37, a condition relevant to ITC eligibility. Rule 36(4) addresses supplier-furnished details and their communication in GSTR-2B. Rule 37A addresses the later failure to file the matching GSTR-3B.
| Supplier or recipient issue | What to check | Main provision |
|---|---|---|
| Supplier did not report the invoice, or it is not communicated in GSTR-2B | Whether the invoice or debit note was furnished in GSTR-1, GSTR-1A or the applicable Invoice Furnishing Facility (IFF), and whether it appears in GSTR-2B | Section 16(2)(aa) of the CGST Act and Rule 36(4) of the CGST Rules |
| Supplier reported the invoice but did not file the corresponding GSTR-3B | Whether the matching return was filed by 30 September following the financial year in which you availed the ITC, and whether you reversed the credit by 30 November following that year if required | Rule 37A of the CGST Rules |
| You have not paid the supplier | Whether the value of the supply and tax were paid within 180 days, subject to the rule’s terms and exceptions | Rule 37 of the CGST Rules; separate from Rule 37A |
What if the invoice is missing from GSTR-2B?
Start with your purchase register and compare it invoice by invoice with GSTR-2B. The GST Portal describes GSTR-1 as the supplier’s statement of outward supplies. A paper invoice is not a substitute for the supplier-reporting and communication conditions in section 16(2)(aa).
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Rule 36(4) also sets a limit for credit relating to invoices that suppliers have not furnished: it may not exceed 5% of the eligible credit on invoices that suppliers have furnished. This is a defined limit, not a general permission to claim any missing invoice. The applicable conditions still matter, so do not treat the 5% figure as an automatic entitlement or a way to bypass invoice-level checks.
Reconcile and investigate each mismatch
- Check the supplier’s GSTIN, invoice number and date, taxable value, tax amounts, and relevant return period against your records.
- Determine whether the invoice is absent because it has not been uploaded, contains incorrect details, is affected by timing, or has another discrepancy.
- Ask the supplier to furnish or correct the details and confirm the period in which the change is expected to appear. Keep dated correspondence and the supplier’s response; follow-up is a practical control, not a guarantee of compliance.
- Reconcile again when the relevant GSTR-2B is available. Keep the outcome and any later correction tied to the original invoice.
The CBIC Tax Information portal’s section 16 and Rule 36 materials set out the statutory reporting and communication framework. The GST Portal’s GSTR-1 user guide explains the supplier’s outward-supplies statement.
What if the invoice appears in GSTR-2B but the supplier has not filed GSTR-3B?
That situation is covered by Rule 37A, not by the missing-invoice analysis alone. Rule 37A applies where the supplier furnished the invoice details in GSTR-1 (including amendments in GSTR-1A) or IFF, you availed the credit, and the supplier did not file the corresponding GSTR-3B by the specified date.
The reference year is the financial year in which you availed the ITC. For that year, check whether the supplier filed the corresponding GSTR-3B by 30 September of the following financial year. If not, Rule 37A requires you to reverse the relevant ITC in a GSTR-3B return on or before 30 November of that following financial year. If you do not reverse it by then, the rule says the amount is payable with interest under section 50.
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Example of the Rule 37A dates
If you availed the credit during financial year 2025–26, the supplier’s corresponding GSTR-3B filing is checked through 30 September 2026. If the supplier has not filed it by then, the Rule 37A reversal deadline is 30 November 2026. These dates follow the year in which you availed the ITC, not simply the invoice date.
If the supplier files later
If the supplier subsequently files the corresponding GSTR-3B, Rule 37A permits you to re-avail the credit in a later GSTR-3B. Keep a record connecting that re-availment to your earlier reversal and to the supplier’s filing.
Rule 37A was inserted by Notification No. 26/2022–Central Tax dated 26 December 2022. Its deadline and reversal mechanism concern this specific supplier non-filing situation; they do not resolve every ITC eligibility issue.
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A practical control is to retain enough information to trace each credit from purchase to supplier reporting, return status, and any reversal or re-availment. The following is a recommended internal workflow, not a checklist stated verbatim in the cited provisions.
- Match the purchase to its documents. Keep the tax invoice, purchase order or other purchase record, proof that goods were received or services supplied, and payment records.
- Record identifiers and tax details. Capture the supplier’s GSTIN, invoice number and date, relevant tax period, taxable value, and tax amounts.
- Reconcile to GSTR-2B. Record whether the invoice appears, whether details match, and any supplier correction or follow-up.
- Track Rule 37A separately. For credit already availed on a reported invoice, record the financial year of availment, the corresponding supplier GSTR-3B period and filing status, and the 30 September and 30 November dates that apply.
- Document any reversal and re-availment. Link the GSTR-3B entries to the invoice and preserve evidence of the supplier’s later filing if you re-avail credit.
Keep separate issues separate
Rule 37 deals with a different problem: the recipient’s failure to pay the supplier the value of the supply plus tax within 180 days, subject to the rule’s terms and exceptions. That payment condition should not be confused with Rule 37A, which concerns a supplier that has not filed the corresponding GSTR-3B. A business may need to assess both issues for the same purchase.
Other ITC conditions, blocked credits, relevant tax periods, notices, and later amendments can affect an individual case. The CBIC materials on section 16 and the CGST Rules, including a November 2025 Telangana Commercial Taxes Department / GST & Indirect Taxes Committee bare-law compilation for Rules 37 and 37A, provide the cited legal framework; check the current law for the period and facts involved. For a substantial credit, demand, or disputed interpretation, ask an Indian GST practitioner to assess the specific records.
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