From January 2022 input tax credit ITC available only upto what is reflected in GSTR-2B
Here is the flowchart what to add + and what to less - from GSTR-2B to arrive at "ITC to be claimed" in GSTR-3B
It is recommended that reconciliation of ITC as per books and GSTR-2B should be done monthly basis, to keep track of ITC mismatch
+ Download GSTR-2B form
(Generally it is available in the afternoon of 14th of every month)
- Remove ineligible ITC from GSTR-2B form
(Such a motor car, food, health insurance, gift, capital expense relating to immovable property etc)
- Remove ITC claimed in earlier period from GSTR-2B
(Example invoice dated 10-12-2021 ITC taken in GSTR-3B of Dec-21, however supplier disclosed same ITC recently and appearing in GSTR-2B of Jan-22)
- Remove goods received in next month from GSTR-2B form
(Example invoice date 30-01-2022 and also appearing in GSTR-2B of Jan-22 , however goods are received from company 5th Feb 2022 , this ITC is to be claimed in GSTR-3B of Feb 2022)
- Remove ITC not relating to your business from GSTR-2B form
(Example A solds goods to B, but in GSTR-1 shown GSTIN of D , Here D needs to be remove ITC from is GSTR-2B)
+ Add import ITC to be Taken based on bill of entries from GSTR-2B form
(Example in Jan 2022, 3 bill of entries are filled by company, However in GSTR-2B of Jan only 1 bill of entries is reflecting, company can claim ITC of remaining 2 bill of entries too in Jan 2022, even though it is not reflecting in GSTR-2B)
+ Add pending ITC from GSTR-2B form
(Example invoice date 10-11-20 21 supplier filled his GST-R1 & GSTR-3B within due date, However buyer has not taken ITC in Nov / Dec yet, same can be now taken in Jan 2022)
Happy reconciling.
