Introduction

Input Tax Credit (ITC) is one of the core benefits under GST — but it is also the area where most mismatches, notices, and disputes occur. To ensure accuracy in ITC claims, taxpayers must reconcile GSTR-2B (auto-drafted ITC statement) with GSTR-3B (monthly return) every month.

This reconciliation ensures that only eligible and vendor-reported ITC is claimed, reducing the risk of excess ITC claims, interest, and penalties.

In this guide, Bisways Consulting Group explains how to reconcile GSTR-2B and GSTR-3B, common mismatch reasons, and best practices to maintain clean GST records.

What Is GSTR-2B?

GSTR-2B is a static monthly ITC statement generated for every taxpayer on the 14th of the following month.

It contains:

• Invoices uploaded by suppliers in GSTR-1

• Debit notes uploaded

• Imports and SEZ supplies

• Ineligible ITC

• ITC available vs. not available

Since it is static, the figures do not change once generated.

What Is GSTR-3B?

GSTR-3B is the self-declared summary return filed monthly or quarterly.

It contains:

• Output tax payable

• ITC claimed

• ITC reversal

• Tax payment details

The ITC claimed in GSTR-3B must match the ITC available in GSTR-2B.

Why GSTR-2B vs GSTR-3B Reconciliation Is Important

GSTR-2B is a static monthly ITC statement generated for every taxpayer on the 14th of the following month.

It contains:

• Prevents excess ITC claims

• Ensures compliance with Rule 36(4)

• Avoids GST notices and scrutiny

• Corrects supplier-related errors

• Helps manage cash flow and tax liability

• Reduces interest and penalties

Why GSTR-2B vs GSTR-3B Reconciliation Is Important

Step-by-Step GSTR-2B vs GSTR-3B Reconciliation Processe

Step 1: Download GSTR-2B Statement

From GST portal:

Services → Returns → Returns Dashboard → GSTR-2B.

Step 2: Extract GSTR-3B ITC Summary

From GST portal:

• Table 4(A): Eligible ITC

• Table 4(B): ITC reversal

Step 3: Compare Supplier-wise and Invoice-wise Details

Match:

• GSTIN

• Invoice number

• Invoice date

• Tax amount

Step 4: Identify Mismatches

Classify into:

• Missing invoices

• Excess ITC claimed

• Ineligible ITC

• Supplier errors

Step 5: Communicate with Suppliers

Request them to:

• Upload pending invoices

• Amend incorrect details

• File GSTR-1 on time

Step 6: Adjust ITC in GSTR-3B

If ITC is not appearing in 2B:

• Do not claim ITC

• Reverse incorrect/excess ITC

• Claim only eligible ITC

Step 7: Maintain Reconciliation Records

Store the reconciliation sheet for audit and departmental review.

Where a Virtual CFO Adds the Most Value

Impact of Incorrect ITC Reconciliation

• GST demand notices

• 18% interest on excess ITC

• Penalties under Section 73/74

• Cash flow blockage

• Compliance rating issues

Best Practices for Smooth ITC Reconciliation

• Ensure vendors file GSTR-1 before due dates

• Share monthly reconciliation with suppliers

• Claim ITC strictly as per GSTR-2B

• Track ineligible ITC separately

• Maintain vendor ledger control

• Perform monthly and annual reconciliation

Conclusion

Effective GSTR-2B and GSTR-3B reconciliation is essential for ensuring accurate ITC claims and maintaining strong GST compliance. By understanding mismatch reasons, coordinating with suppliers, and following best practices, businesses can avoid disputes, penalties, and cash-flow issues.

Bisways Consulting Group supports businesses with monthly and annual GST reconciliation, ITC audit, mismatch resolution, and end-to-end GST compliance management.