GST · ITC reconciliation
ITC mismatch between GSTR-2B and GSTR-3B? Fix it before it becomes a notice
If the ITC you claim in GSTR-3B is higher than what appears in your GSTR-2B, the portal now flags it automatically. Left alone, the gap turns into a DRC-01C intimation, a blocked GSTR-1 for the next period, and eventually a demand with interest.
WhatsApp — free health checkWhy mismatches happen: suppliers file GSTR-1 late or not at all, invoices are uploaded under the wrong GSTIN, credit notes are missed, ITC is claimed on ineligible items (blocked credits under section 17(5)), or the same invoice is claimed twice across months. Each cause needs a different fix, so the first job is to sort the gap invoice by invoice.
How the portal reacts: when ITC claimed in GSTR-3B exceeds the GSTR-2B figure beyond the allowed tolerance, an intimation is issued in DRC-01C. You are expected to respond in Part B — either pay the excess with interest through DRC-03, or explain the difference with reasons. Until you respond, filing GSTR-1 for the next period can be blocked.
Our reconciliation: we download GSTR-2B for the affected months, match it line by line against your purchase register in Tally or Zoho, and classify every difference — supplier not filed, timing (will appear next month), wrong GSTIN, ineligible credit, or duplicate. You get a clear sheet showing which ITC is safe, which must be reversed and which needs supplier follow-up.
Supplier follow-up: for vendors who have not uploaded invoices, we prepare a short WhatsApp/email list with invoice numbers and amounts so your team can chase them. Credit that appears in a later GSTR-2B is claimed in that period with a note in the workpaper.
Replying to DRC-01C: where the gap is explainable (timing, a supplier who has since filed, an amendment), we draft the Part B explanation with supporting detail. Where the excess is genuine, we compute the reversal and interest and prepare the DRC-03 so the matter closes cleanly. Show-cause notices beyond intimation are handled with a practising CA or advocate where needed.
Prevention: a monthly GSTR-2B reconciliation before GSTR-3B is filed is the cheapest fix of all. It is included in our GST filing and Books + GST retainers, with a written fixed monthly quote. VedhaNirvana Accounting India is CA-led, under VedhaNirvana Private Limited, Chennai.
What we handle
- ✓ Line-by-line GSTR-2B vs purchase register match
- ✓ Gap classified: supplier, timing, ineligible, duplicate
- ✓ DRC-01C Part B explanation drafted
- ✓ DRC-03 reversal + interest computed where needed
- ✓ Monthly 2B check before every GSTR-3B
FAQ
What is a DRC-01C intimation?+
It is an automated intimation when the ITC claimed in GSTR-3B exceeds what is available in GSTR-2B beyond the tolerance. You respond by paying the excess through DRC-03 or explaining the difference in Part B.
Will my GSTR-1 be blocked if I do not respond?+
It can be — the portal may restrict filing GSTR-1 for the next period until the intimation is addressed. Responding quickly avoids that.
My supplier has not filed GSTR-1. Do I lose the credit?+
Not necessarily. Credit can be claimed in the period it appears in your GSTR-2B, subject to the time limits. We list missing invoices so you can chase suppliers.
How many months can you reconcile?+
As many as needed. Send the GSTIN, months affected and your purchase register on WhatsApp and we confirm scope and a written quote.
Ready to start?
Message us on WhatsApp. Written engagement before the first paid month.
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