ITC Reconciliation (GSTR-2B)
ITC Reconciliation compares your purchase bills with the GSTR-2B statement from the GST portal, so you claim only the input tax credit that is safe to claim.
Why and when you use it
Input tax credit (ITC, the GST you paid on purchases) can generally be claimed only when it shows in your GSTR-2B, the auto-drafted statement built from your suppliers' filings. If a supplier did not file, or filed with wrong figures, your credit is at risk. This screen matches every purchase bill with 2B, sorts them into four groups and lets you record a decision for each. Accountants run it every month before GSTR-3B.
Before you start
- Enter all purchase bills for the month in Purchases, with the Supplier Bill Number
- Suppliers saved with correct GSTINs
- Download the month's GSTR-2B JSON file from the GST portal
Step by step
- Download GSTR-2BOn the GST portal, download the GSTR-2B for the month as a JSON file and save it on your computer.
- Upload & reconcileOpen 🔁 ITC Reconciliation (GSTR-2B). Choose the GSTR-2B month, choose the GSTR-2B JSON file and press Upload & reconcile. If the portal gave the 2B in several parts, upload each part and tick This is another part of a split 2B (keep earlier parts).
- Read the summaryThe Input tax credit for this month panel shows IGST, CGST, SGST, Cess and Total.
- Check MatchedMatched rows agree between As per GSTR-2B and As per my books. These are normally safe to claim.
- Work through MismatchMismatch rows exist in both but differ. Compare Taxable (2B / books) and Tax (2B / books), and read What to do. Often it is a typing error in the supplier bill amount or number.
- Check In 2B, not in my booksThese are bills your supplier reported that you have not entered. Enter the missing purchase bill, or find out why the supplier reported it.
- Check In my books, not in 2B (ITC at risk)Your bill is entered but the supplier has not reported it. Ask the supplier to file. Usually hold this credit until it appears; check with your CA.
- Record decisionsFor each row choose Mark accepted, Mark pending or Ignore. The Decision column keeps your choice.
- Re-check and exportAfter fixing bills, press Re-check with latest purchases. Press Export CSV to share the result with your CA.
Worked example
Sharma Traders bought goods worth ₹18,60,000 in October 2026 across 37 bills. Hindustan Foods Pvt Ltd (Delhi) is inter-state, so its bills carry IGST. The accountant uploads October's 2B on 14 Nov 2026.
- Choose GSTR-2B month = October 2026, pick the JSON file and press Upload & reconcile.
- Matched: 33 bills. Mismatch: 1 bill from Hindustan Foods, Taxable 2B ₹1,20,000 vs books ₹1,02,000.
- The bill was typed wrong; correct it in Purchases, then press Re-check with latest purchases. It moves to Matched.
- In 2B, not in my books: one ₹8,400 bill from a local packaging supplier that was never entered; enter it in Purchases.
- In my books, not in 2B: one ₹46,000 bill. Mark pending and phone the supplier.
- Mark accepted on the rest and press Export CSV for the CA.
Result: The accountant knows exactly how much ITC is safe for October, which ₹46,000 bill is at risk, and sends the CSV to the CA with GSTR-3B figures.
💡 Tips
- Upload 2B every month as soon as it is available; problems are easier to fix while fresh.
- Keep the Supplier Bill Number in Purchases exactly as on the supplier's bill; it helps matching.
- Review Mark pending rows next month; many move to Matched once the supplier files.
⚠️ Common mistakes
- Claiming ITC for In my books, not in 2B rows without checking. This can lead to notices and interest. Check with your CA.
- Uploading only one part of a split 2B. Tick This is another part of a split 2B for each later part so earlier parts are kept.
- Changing amounts to force a match. Only correct a bill if your entry was truly wrong.
Questions
Where do I get the JSON file?
From the GST portal's GSTR-2B download for the month.
What does Ignore do?
It records that you have looked at the row and decided it needs no action, so it stops showing as an open item.
🎬 Video walkthrough (script — recording coming soon)
- Scene 1: Download GSTR-2B JSON on the GST portal (narrated, no login shown).
- Scene 2: Choose GSTR-2B month and file, press Upload & reconcile.
- Scene 3: Show the IGST, CGST, SGST, Cess, Total summary.
- Scene 4: Open Mismatch and read What to do.
- Scene 5: Fix the bill in Purchases, press Re-check with latest purchases.
- Scene 6: Open In my books, not in 2B and press Mark pending.
- Scene 7: Press Export CSV.