GST input tax credit reconciliation
GST
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Monthly
A purchase invoice can appear in your books, in a supplier’s filing and in GSTR-2B at different times. TheTaxCo matches those records, checks the credit treatment, follows up missing supplier entries and carries the approved credit position into GSTR-3B filing.
The output shows eligible credit, required reversals, possible reclaims and items awaiting evidence. It also identifies who needs to act: your purchase team, a supplier, the accountant or the return preparer.
A match is one part of the review
We compare GSTIN, document number and date, taxable value and tax amounts. Exact matches are separated from likely matches with formatting differences, duplicates and genuine mismatches. Books-only invoices, statement-only entries and credit notes each receive a different follow-up action.
Reporting agreement does not by itself prove entitlement. The review also considers the supporting tax document, receipt of the supply, business use, supplier reporting, payment conditions and the other statutory requirements. Blocked credit and common credit attributable to exempt or non-business activity need separate treatment. CGST Act, sections 16 and 17.
Imports, reverse charge and input-service-distributor credits require their own evidence and matching approach. We do not force every credit into the domestic supplier-invoice workflow.
Managing statement and IMS differences
The Invoice Management System allows actions on the records it covers. Those actions must follow the invoice, receipt and accounting evidence. We prepare a proposed action list for approval and review whether the related GSTR-2B needs recomputation before GSTR-3B is filed. The portal’s functionality and permitted actions depend on document type. GST Portal IMS FAQ.
A supplier follow-up list records the missing document or correction, the tax amount, the owner and the next review date. We follow up suppliers for missing documents and reporting corrections, keeping your purchase team informed where commercial decisions or payment disputes need its input. We use the next period’s data to close resolved items and avoid a second claim.
For unpaid supplier invoices, the review tracks the 180-day payment condition, applicable exceptions and proportionate reversal or re-availment treatment. It therefore needs the payment ledger as well as the purchase register. CGST Rules, rule 37.
The monthly deliverables
Invoice-level reconciliation with matched, mismatched, duplicate and missing entries.
Proposed GSTR-3B credit summary, including reversals and reclaims.
Evidence and supplier-action list with the person responsible for each item.
Ageing of unresolved credit by document year and remaining claim window.
A closing schedule carried into the next month, recording what was claimed and what remains open.
The records needed are purchase and expense registers, invoices and notes, GSTR-2B, relevant IMS data, payment details and the previous reconciliation. Import or reverse-charge documents are added where those transactions exist. We can begin with an incomplete file and identify the gaps, but the final claim recommendation must reflect what can be supported.
Avoid losing the claim window
Under the ordinary section 16(4) rule, FY 2025–26 invoices and debit notes reach the outer date on 30-11-2026, or the date the relevant annual return is furnished if earlier. FY 2026–27 documents have the corresponding 30-11-2027 date. Special statutory relief or registration-cancellation cases need separate assessment. CGST Act, section 16.
We prioritise old unresolved items before that window closes. The work remains monthly because a supplier correction and the buyer’s eventual claim may happen in different periods. Invoice volume, the number of GSTINs, data quality and the unresolved opening schedule determine the review timetable.
Questions about held credit
A supplier promises to file soon. Can we claim now? A promise does not replace the reporting condition. We track the invoice and reassess it when the reporting and other required conditions are met.
The invoice is in GSTR-2B but our team cannot find it. We request the document and evidence of the supply before recommending a claim. A statement-only item can also be a wrong GSTIN or duplicate entry.
Can you work with our return preparer? Yes. We agree the handover format and cut-off so the reviewed credit schedule reaches the person preparing GSTR-3B in time.
See GSTR-3B payment review, annual GST reconciliation and bookkeeping and reconciliations.
Email TheTaxCo, message us on WhatsApp or book a call. Share the number of GSTINs, approximate monthly purchase-invoice count and the oldest unresolved credit period.