Input tax credit is where most GST trouble starts. The rules are strict, and the cost of getting them wrong is real money plus interest. These are the mistakes I see most often.
The usual culprits
- Claiming credit not in your 2B — if your supplier hasn't reported the invoice, the credit isn't yours to take yet.
- Missing the time limit — ITC for an invoice has a hard cut-off — claim it late and it's gone.
- Blocked credits — certain expenses are simply not eligible; claiming them anyway invites a reversal.
- Ignoring reversals — credit on unpaid invoices and exempt supplies has to be reversed on schedule.
A routine that keeps it clean
Reconcile your purchase register against GSTR-2B every month, before you file — not quarterly, not at year end. Flag mismatches immediately and chase the supplier while the transaction is still fresh.
A monthly 2B reconciliation takes an hour and saves days of unwinding later. It's the highest-return habit in GST compliance.
In short
Only claim what's in your 2B, watch the time limits, respect blocked credits, and reconcile every month. Do that and your ITC will hold up to any scrutiny.
Independent Chartered Accountant. I write short, practical notes on tax, GST and compliance — and I'm always happy to answer a real question.
