Input Tax Credit Reconciliation
Make sure the input tax credit you claim actually matches what your suppliers have reported. Leegal reconciles your purchase data against GSTR-2B every period.
Why Does ITC Reconciliation Matter?
Input tax credit (ITC) lets you offset tax paid on purchases against tax collected on sales, but it generally needs to match what your suppliers have reported in their own GST filings.
Regular reconciliation between your purchase records and the auto-populated GSTR-2B statement helps you claim the right ITC, follow up with non-compliant suppliers, and avoid credit reversals or notices later.
| Reconciled ITC Process | Unreconciled ITC Claims |
|---|---|
| ITC claimed matches supplier-reported data | Risk of mismatches surfacing later as a notice |
| Early follow-up with non-filing suppliers | Credit may need to be reversed with interest |
| Clean audit trail for each filing period | Harder to explain discrepancies after the fact |
| More predictable cash flow from tax credits | Risk of blocked or delayed credit |
Information Required
Keep these ready each period for reconciliation.
- Purchase register for the period
- Vendor invoices and debit/credit notes
- GSTR-2B statement for the period
- Previously filed GSTR-3B returns
- Vendor GSTIN details
- Accounting software export, if available
How It Works
Data Collection
You share your purchase records and accounting data for the period.
GSTR-2B Matching
We match your records against the auto-populated GSTR-2B statement.
Discrepancy Reporting
We flag mismatches and vendors who haven't filed correctly.
Follow-Up Support
We help you follow up with vendors and adjust claims where needed.
Purchase-to-2B Matching
Systematic matching of your purchase register against GSTR-2B.
Mismatch Reporting
Clear reporting on discrepancies and non-compliant vendors.
Ongoing Monthly Reconciliation
Recurring reconciliation aligned with your filing cycle.
Why Reconcile Through Leegal
- Experienced team that goes beyond just filing returns.
- Clear, upfront pricing with no hidden charges.
- One dedicated point of contact every period.
- Practical follow-up guidance for vendor mismatches.
Talk to Our Team
GS006, Vikash Nagar, Ramgarh Cantt, Jharkhand 829122, India
Frequently Asked Questions
What is GSTR-2B and why does it matter?
GSTR-2B is an auto-generated statement showing input tax credit available based on your suppliers' filings, and is a key reference point for what you can safely claim.
What happens if a supplier hasn't filed their return?
Credit linked to that invoice may not reflect in your GSTR-2B, which can affect how much ITC you're able to claim for that period.
How often should ITC reconciliation be done?
Ideally every filing period, so mismatches are caught early rather than accumulating into a larger issue.
Can unreconciled ITC lead to a notice?
Yes, persistent mismatches between claimed credit and supplier filings are a common trigger for GST department scrutiny.
Does Leegal help follow up with non-compliant vendors?
Yes, we help identify which vendors are causing mismatches so you can follow up with them directly.
Want Cleaner Input Tax Credit Claims?
Talk to our team and get your ITC reconciliation set up — no obligation.