What this means
A good ITC process matches three datasets: the purchase register, supplier-reported portal information and the tax actually claimed in the return. Differences should be categorised rather than simply carried forward.
Practical points
First, validate supplier GSTIN and invoice identifiers. Second, separate invoices not yet appearing on the portal. Third, identify reversals or blocked credits. Fourth, track debit/credit notes. Fifth, maintain an ageing schedule for unresolved items.
Control and documentation
The accounting team should not overwrite source data to force a match. Keep the original extract and a reconciliation layer with remarks and responsibility. This preserves an audit trail.
Before you act
At period close, the person reviewing GSTR-3B should see the reconciliation summary, not only the final ITC number.
Sources
This article is general educational information as at the review date shown above. It is not a substitute for the legislation, notification, circular or advice applicable to a particular person or transaction. Verify the current official source before acting.