What is GSTR-3B and when is it due?

GSTR-3B is a monthly self-declared summary GST return. For regular taxpayers, it is due by the 20th of the following month. Late filing attracts ₹50/day late fee (₹25 CGST + ₹25 SGST), capped at ₹5,000.

How do I reply to a DRC-01 GST notice?

DRC-01 is a show-cause notice for tax demand. Log in to GST portal, go to Services > User Services > View Additional Notices, select the notice and file a reply within 30 days — either agreeing and paying, or disputing with supporting documents.

What is the late fee for filing GSTR-1 late?

Late fee for GSTR-1 is ₹50/day (₹25 CGST + ₹25 SGST). For nil returns it is ₹20/day. Maximum cap is ₹10,000 per return. GSTR-1 is due by the 11th of each month for monthly filers.

Can I claim ITC on hotel and restaurant bills?

ITC on restaurant food and beverages is blocked under Section 17(5) CGST Act — not claimable. However, ITC on hotel accommodation is allowed if used for business purposes and the hotel provides a GST invoice with your GSTIN.

What is the GST registration threshold in India?

GST registration is mandatory if annual aggregate turnover exceeds ₹40 lakhs for goods (₹20 lakhs for special category states) or ₹20 lakhs for services (₹10 lakhs for special category states). E-commerce sellers must register regardless of turnover.

ITC Mismatch in GSTR-2B: Causes, Impact, and Step-by-Step Solution

sai krishna
Jun 7
2 min read

Input Tax Credit (ITC) mismatch between your purchase register and GSTR-2B is the single biggest cause of GST notices across India. Here is everything you need to know.

Why Does GSTR-2B Mismatch Occur?

GSTR-2B is auto-generated from your suppliers' GSTR-1 filings. A mismatch arises when:

1. Your supplier filed GSTR-1 late or with errors 2. Your supplier's GSTIN was cancelled/suspended 3. You claimed ITC in GSTR-3B before it appeared in GSTR-2B 4. Invoice details (GSTIN, invoice number, date, amount) don't match 5. Your supplier filed in a different tax period

What is the Legal Limit? (Rule 36(4))

For FY 2022-23 onwards, ITC can only be claimed to the extent it appears in GSTR-2B. There is no 5% provisional credit available after October 2022. Any ITC not in GSTR-2B is disallowable under Section 16(2)(aa).

Step-by-Step Reconciliation Process

Step 1: Download GSTR-2B for all months of the financial year Step 2: Download your purchase register from Tally/accounting software Step 3: Match each invoice — GSTIN, invoice number, date, and taxable value Step 4: Identify unmatched invoices Step 5: For unmatched invoices, check if supplier filed later — if yes, claim in next month's GSTR-3B Step 6: If supplier never filed, consider reversing the ITC and recovering from supplier

Section 16(4) Time Limit — Act Before It Expires

ITC for any invoice must be claimed by the earlier of: - 30th November of the following financial year, or - Date of filing the annual return (GSTR-9)

After this date, ITC is permanently lost. Check your books immediately.

What Happens If You Don't Reconcile?

The department compares your GSTR-3B ITC claim with your GSTR-2B data. Excess ITC triggers ASMT-10 scrutiny notice under Section 61. If you fail to respond, it moves to DRC-01 show cause notice with interest under Section 50 (18% per annum) and penalty.

Disclaimer: Consult your CA for case-specific advice.