GSTR-2B Reconciliation & ITC Review is the core monthly control under Indian GST by which a taxpayer verifies that every rupee of input tax credit (ITC) claimed in GSTR-3B is backed by an eligible invoice appearing in the static, period-locked GSTR-2B statement. Under Section 16(2)(aa) of the CGST Act, 2017 and Rule 36(4) of the CGST Rules, a recipient can only claim ITC that is "communicated" to them through GSTR-2B — making 2B the single legal foundation of current-month ITC claims, not 2A, not books, not vendor invoices alone.
The review is equally critical on the quality side. Even when an invoice appears in 2B, ITC may still be ineligible under Section 17(5) (blocked credits like motor vehicles, personal consumption, CSR expenditure, food & beverages), restricted under Rule 42 / 43 (common credit apportionment between taxable and exempt supplies), or reversible under Rule 37 (non-payment to vendor within 180 days) and Rule 37A (vendor not paying GSTR-3B tax). An unreviewed ITC claim is therefore not just a reconciliation issue — it is a legal exposure that can surface in DRC-01C (Rule 88D) mismatch notices, scrutiny under Section 61, and full-blown demand proceedings under Sections 73 / 74.
We offer end-to-end GSTR-2B Reconciliation & ITC Review Services — from automated download of GSTR-2B from the GST portal, invoice-level matching with the purchase register, eligibility review under Section 17(5) and Rule 42 / 43, Rule 37 / 37A tracking, decision on ITC to claim / defer / reverse each month, DRC-01C defence, reclaim of past ITC within the Section 16(4) window, and year-end Table 8 build-up for GSTR-9 — so every eligible credit is captured, every ineligible credit is clearly isolated, and your ITC position is fully audit-ready month after month.
Invoice-level matching of GSTR-2B with the purchase register to confirm whether ITC is claimable at all.
Legal review of each invoice for eligibility — even when present in 2B, credit may be blocked or restricted.
B2B invoices from regular suppliers eligible for ITC, auto-populated from suppliers' GSTR-1 / IFF.
Amendments made by suppliers to earlier B2B invoices, now reflected in the current period's 2B.
Debit notes issued by suppliers that increase ITC available to the recipient for the period.
ITC distributed by Input Service Distributors through GSTR-6 — allocated to receiving GSTINs.
Invoices where ITC is not available — time-barred, blocked, or from other ineligible sources.
Invoices and CNs from suppliers under Rule 37A or cancelled / default cases requiring ITC reversal.
Structured invoice-level matching between 2B, purchase register, and books of accounts.
Issue-level review of every high-value credit against Section 16, 17(5), and Rule 42 / 43 tests.
Clear monthly decisions on ITC to claim, defer, reverse, or re-avail — backed by documentation.
End-to-end monthly 2B vs purchase register reconciliation before GSTR-3B filing cut-off.
Legal review of blocked credits — motor vehicles, food, CSR, employee welfare, personal consumption.
Computation of common credit reversal for businesses with taxable and exempt supplies.
Tracking payment to vendors within 180 days to prevent Rule 37 ITC reversal with interest.
Monitoring vendor GSTR-3B filing status to identify ITC exposure under Rule 37A.
Dashboards showing defaulting vendors, ITC at risk, and suggested follow-up actions.
Drafting replies to Rule 88D (DRC-01C) notices on GSTR-2B vs 3B ITC mismatches.
Year-end Table 8 reconciliation for GSTR-9 and alignment with GSTR-9C on ITC disclosures.
ITC on motor vehicles, their repairs, insurance, and leasing — heavily restricted under Sec 17(5).
Food, beverages, outdoor catering, and club membership — generally blocked for ITC.
Works contract and construction services for immovable property — often ineligible.
Goods and services used for CSR activities where ITC is specifically restricted.
Gifts, rewards, medical insurance, personal benefits to employees — fact-specific ITC restrictions.
Common credit used for taxable, exempt, and non-business purposes — Rule 42 / 43 apportionment.
RCM on legal, GTA, import of services — common ITC errors and timing mismatches.
Matching IGST paid on Bill of Entry with ICEGATE data and GSTR-2B import tables.
Factories with high input, capital goods, and services consumption needing tight credit control.
High-volume trading businesses with large vendor base and quick ITC turnover.
Service exporters using LUT / refund route where ITC quality directly drives refund amount.
Works contract businesses with complex input mix and heavy Sec 17(5) restrictions.
Aggregators and marketplace sellers with multi-state GSTINs and platform-based input flows.
Banks, NBFCs, and insurers with largely exempt outward supplies and heavy Rule 42 / 43 impact.
Builders, hotels, and chains navigating special ITC restrictions and blocked credit rules.
Sector with heavy R&D, promotional spend, free samples, and CSR ITC considerations.
Pulling GSTR-2B, ICEGATE, and purchase register data in a structured, match-ready format.
Matching 2B to purchase register at invoice level and flagging every mismatch bucket.
Testing each high-value credit against Section 16, 17(5), and Rule 42 / 43 legal filters.
Finalising ITC to claim, defer, reverse, and document monthly ITC working with explanations.
Sharing monthly MIS, vendor-wise dashboards, and corrective actions for the next cycle.
Partner with our specialists for end-to-end GSTR-2B Reconciliation & ITC Review Services — matching, Section 17(5), Rule 42 / 43, Rule 37 / 37A, and DRC-01C defence — all under one roof.
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