How to fill Input Tax Credit in GSTR 3B from GSTR 2A Invoices

CGST Rule – 36 now limits taxpayers from availing Input Tax Credits (ITC) if their suppliers have not reported the invoices in GSTR 2A. Recipient can take credit only up-to 20% above eligible ITC reflecting in GSTR 2A.

Issues Taxpayers face while claiming Input Tax Credit

We see that many Taxpayers face issues while claiming their ITC. Such as:

  • Supplier may not have reported the invoice in GSTR 2A
  • If there is an Amendment, you would need to consider the final amount
  • Reverse charges / Exempted invoices need to be excluded

At GSTZen, we aim at producing simpler solutions for all your GST needs. Here’s what we have come up with to help you stay complaint while filling Input Tax Credit (Table 4) of your GSTR 3B.

Steps a taxpayer has to follow to claim Input Tax Credit in GSTR 3B

Steps Taxpayers need to follow How GSTZen will help
Download and Review GSTR 2A for the financial year Through GSTZen, you can download full year GSTR 2A all at once
Reconcile Books (Purchase Register) with GSTR 2A to identify which invoices present in GSTR 2A are meant for the taxpayer and exclude the invoices that suppliers have uploaded by mistake. In GSTZen’s Books vs GSTR 2A reconciliation, you can upload your Purchase Register through Excel or Tally. GSTZen Intelligent Matcher will compare all invoices between your Books and the Govt. Portal and match the invoices based on Invoice number, Invoice date, Tax value etc.
Identify eligible credit from invoices in GSTR 2A GSTZen enables you to mark the invoices as Ineligible due to Personal Use, Exempted Use, Blocked Credit etc.
Ensure that you are not claiming credit for the same invoice twice You can mark the invoice as Accepted and provide the GSTR 3B period in which you are claiming credit
Ensure that you are not claiming credit for goods that have not arrived before the filing date You can mark invoice as Pending Accept and claim in a future period
Claim credit for old invoices that the supplier has uploaded late You can mark the invoice as Accepted and provide the GSTR 3B period in which you are claiming credit
Alert vendors to invoices in your books that are not present in the Govt. Portal GSTZen offers an Email to Suppliers option through which GSTZen will send an automated email to your suppliers requesting to upload their invoices in the Govt. Portal

Advanced Purchase Reconciliation Dashboard

Through the GSTZen Advanced Purchase Reconciliation Dashboard, you can Take action on your GSTR 2A and Track status of your ITC all from GSTZen's Excel Report. This system enables you to be aware of your ITC compliance and take charge accordingly.

GSTIN Purchase Reconciliation Dashboard

GSTZen ITC Reconciliation Dashboard

Here's an example of the excel output where you can choose the reconciliation status, ITC eligibility etc.

ITC Reconciliation Report

GSTZen ITC Reconciliation Excel

  • Invoice update - You can upload the filtered invoices directly to GSTZen server.

  • Credit/Debit Note upload - Upload Credit/Debit notes into GSTZen directly from the excel file.

GSTR 2A Auto-Reconciliation Status

  • Review Later - You choose to review this invoice at a later point of time.
  • Wrong Invoice by Supplier - Supplier has uploaded incorrect invoice. You may contact them to make amendments accordingly.
  • Lost ITC - You do not wish to track the Input Tax Credit for this invoice.
  • E-Mail Supplier - GSTZen will email the Supplier requesting them to upload invoice into the government portal.
  • E-Mail to Supplier sent - Once the email is sent, GSTZen will automatically change the invoice status to E-Mail sent on your behalf.
  • Lock Match - You are happy with the reconciliation and you can lock this match.

ITC Eligibility

  • Ineligible – Personal Use - Any personal invoices that are not eligible for ITC.
  • Ineligible – Exempted Use - Exempt invoices are ineligible for ITC.
  • Ineligible – Blocked Credit - Blocked credit invoices.
  • Eligible – Taxable Use - Invoices that are eligible for ITC claim.
  • Common Credit - Common credit invoices.

ITC Claim Status

  • Accepted - Invoices for which ITC is Accepted.
  • Rejected - ITC is being Rejected since the invoice is incorrect.
  • Pending Accept - ITC for the invoice can be claimed at a future period.
  • Accept and Reverse - Invoice is correct, however, you are reversing the ITC since you are not eligible for the ITC claim.