Does AIS GST Purchase aggregate GSTR-2B expenses? How to handle P&L classification and AIS reconcili

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suchitra perumal

27 Points Posted on 24 September 2026

Dear Experts,

I need clarification regarding the reconciliation of GSTR-2B / AIS figures with Profit & Loss account reporting under Income Tax.

Scenario: Our GSTR-2B contains B2B invoices for both direct trading purchases and indirect operational expenses (e.g., rent, legal services, repair, software subscripttions). In the Annual Information Statement (AIS) on the Income Tax portal, the entire GSTR-2B taxable turnover is reflected under the header "GST Purchase."

My Queries:

Should all GSTR-2B values be booked under "Purchases" in trading A/c to match AIS, or should they be split into Purchases and Indirect Expenses in P&L according to standard accounting principles?
How should we respond if an Income Tax automated discrepancy notice (under Sec 143(1)) arises due to a variance between P&L "Purchases" and AIS "GST Purchase"? Is presenting a reconciliation statement (Purchases + GST Expenses = AIS Figure) accepted during scrutiny?
Is there any restriction under Income Tax norms against receiving GST-registered vendor invoices for indirect operational expenses under our GSTIN?

Looking forward to your guidance and practical insights.

Regards,

Suchitra.P

Replies (6)

Quick Summary

This discussion clarifies how to reconcile GSTR-2B and AIS 'GST Purchase' figures with your Profit & Loss account. While AIS aggregates all GST purchases, it's crucial to book expenses according to their nature in your P&L (e.g., trading purchases vs. indirect expenses) rather than solely matching AIS. A reconciliation statement showing AIS Total = Purchases + Expenses + Capital Goods is accepted by the Income Tax Department to explain any variances. Receiving GST invoices for indirect operational expenses is legal and recommended for ITC claims.

Aashok Kumar Sharma

Finance/Compliance Consultant

67382 Points Posted on 24 September 2026

Classification: Maintain correct accounting split—do not move P&L expenses to Trading Purchases.
Discrepancy Handling: Respond to notices using a Reconciliation Statement ( $\text{AIS Total} = \text{Purchases} + \text{Expenses} + \text{Capital Goods}$ ), which is fully valid and accepted by the IT Department.
Legality: Receiving B2B GST invoices for operational expenses is completely legal and recommended for claiming ITC and business expense deductions.

Tax Garden

Tax Consultant

2004 Points Posted on 25 September 2026

Book each invoice where it belongs by nature. Don't push everything into Purchases just to match AIS.

Some points to keep in mind:

AIS "GST Purchase" is only an information display. Your books are what the return is based on, so trading purchases go in Purchases and rent, legal, repairs and software go under the relevant indirect expense heads in P&L, as per normal accounting standards.
GSTR-2B also carries items that never touch P&L purchases at all: capital goods (they go to fixed assets), ineligible or blocked credit, and invoices of a different period. So a variance is normal and expected.
Keep a simple reconciliation working: AIS GST Purchase = Purchases + indirect expenses + capital goods + other items (reverse charge, ITC not availed, timing differences) with the GSTR-2B invoice list as annexure. Yes, this is the standard way to explain a difference, and it is accepted when it ties out invoice-wise.
If a mismatch is flagged, give feedback on the AIS line itself (option to add feedback against the "GST Purchase" information) with the reconciliation attached, and respond on the portal if a notice or communication follows. Note that a difference between AIS and your P&L is not by itself one of the adjustments allowed under section 143(1), so check what the notice actually says before replying.
There is no income tax restriction on receiving vendor invoices for indirect expenses on your GSTIN. The only condition is that the expense is business expenditure (section 37), backed by the invoice and proof of payment, and TDS is deducted where applicable (rent, professional fees, etc.).

If it helps, this [AIS explainer for AY 2026-27](https://taxgarden.in/blog/annual-information-statement-ais-ay-2026-27-guide) covers how to give feedback on AIS entries and match them against your books.

suchitra perumal

27 Points Posted on 25 September 2026

Dear Experts,

I need clarification regarding a new instruction given by our auditor for our GST-registered company.

Our GSTR-2B currently contains both:

Genuine purchase invoices; and

GST invoices relating to business expenses such as rent, professional/legal fees, repairs, software subscripttions and other operational expenses.

These expense invoices are also reflected in AIS under the broad “GST Purchase” information.

Our auditor has now instructed us that from the coming month onward, we should not obtain GST invoices for any indirect expenses in our company's GSTIN. Only genuine purchase invoices should be obtained using the company's GSTIN.

The reason given by the auditor is that if indirect expense invoices are received using our GSTIN, they will appear in GSTR-2B and subsequently in AIS under “GST Purchase”. Since our auditor wants the AIS “GST Purchase” figure to correspond with Purchases in the books, they have advised us not to receive expense invoices under our GSTIN.

My questions are:

Is there any provision under the Income-tax Act, Income-tax Rules, CBDT instructions or AIS guidelines which requires a company to avoid receiving GST invoices for legitimate business expenses merely because those invoices will appear in GSTR-2B/AIS?

If a GST-registered company receives a genuine invoice for rent, professional services, repairs, software, etc. and provides its GSTIN to the supplier, is there any Income-tax restriction against doing so?

Is it correct to say that only purchase invoices should carry the company's GSTIN and indirect expense invoices should not carry the company's GSTIN, purely to avoid the expense invoices appearing under AIS “GST Purchase”?

If the supplier is GST registered and the company is GST registered, what is the correct GST treatment when the supplier provides a taxable service such as rent/professional service/repair/software to the company? Is the recipient required or permitted to provide its GSTIN on the invoice?

If we deliberately ask suppliers not to mention our GSTIN, what would be the consequence regarding ITC eligibility, GST reporting and the supplier's reporting in GSTR-1/GSTR-2B?

Most importantly, is avoiding GST invoices in the company's GSTIN an Income-tax compliance requirement, or is it only an internal accounting/reconciliation practice adopted by our auditor?

I am looking specifically for the relevant section/rule/circular/notification, if any, supporting the instruction.

Example:
Company receives:

Purchase invoice – ₹80,000 + GST → GSTIN given

Office rent – ₹20,000 + GST → auditor says don't give GSTIN

Professional fee – ₹10,000 + GST → auditor says don't give GSTIN

Is this treatment legally required, or can all three legitimate business transactions be invoiced with the company's GSTIN and separately classified in the books according to their actual nature?

Kindly clarify with reference to the applicable Income-tax and GST provisions.

Thanks & Regards,

Suchitra.P

suchitra perumal

27 Points Posted on 25 September 2026

Dear Experts,

I need clarification regarding a new instruction given by our auditor for our GST-registered company.

Our GSTR-2B currently contains both:

Genuine purchase invoices; and

GST invoices relating to business expenses such as rent, professional/legal fees, repairs, software subscripttions and other operational expenses.

These expense invoices are also reflected in AIS under the broad “GST Purchase” information.

Our auditor has now instructed us that from the coming month onward, we should not obtain GST invoices for any indirect expenses in our company's GSTIN. Only genuine purchase invoices should be obtained using the company's GSTIN.

The reason given by the auditor is that if indirect expense invoices are received using our GSTIN, they will appear in GSTR-2B and subsequently in AIS under “GST Purchase”. Since our auditor wants the AIS “GST Purchase” figure to correspond with Purchases in the books, they have advised us not to receive expense invoices under our GSTIN.

My questions are:

Is there any provision under the Income-tax Act, Income-tax Rules, CBDT instructions or AIS guidelines which requires a company to avoid receiving GST invoices for legitimate business expenses merely because those invoices will appear in GSTR-2B/AIS?

If a GST-registered company receives a genuine invoice for rent, professional services, repairs, software, etc. and provides its GSTIN to the supplier, is there any Income-tax restriction against doing so?

Is it correct to say that only purchase invoices should carry the company's GSTIN and indirect expense invoices should not carry the company's GSTIN, purely to avoid the expense invoices appearing under AIS “GST Purchase”?

If the supplier is GST registered and the company is GST registered, what is the correct GST treatment when the supplier provides a taxable service such as rent/professional service/repair/software to the company? Is the recipient required or permitted to provide its GSTIN on the invoice?

If we deliberately ask suppliers not to mention our GSTIN, what would be the consequence regarding ITC eligibility, GST reporting and the supplier's reporting in GSTR-1/GSTR-2B?

Most importantly, is avoiding GST invoices in the company's GSTIN an Income-tax compliance requirement, or is it only an internal accounting/reconciliation practice adopted by our auditor?

I am looking specifically for the relevant section/rule/circular/notification, if any, supporting the instruction.

Example:
Company receives:

Purchase invoice – ₹80,000 + GST → GSTIN given

Office rent – ₹20,000 + GST → auditor says don't give GSTIN

Professional fee – ₹10,000 + GST → auditor says don't give GSTIN

Is this treatment legally required, or can all three legitimate business transactions be invoiced with the company's GSTIN and separately classified in the books according to their actual nature?

Kindly clarify with reference to the applicable Income-tax and GST provisions.

Thanks & Regards,

Suchitra.P

MohamedAsifLakdawala

CPA ACCA

43 Points Posted on 27 September 2026

Short version: your books follow accounting principles, AIS is just an information feed, and the two will never line up one-to-one. That is expected, not a defect.

On classification: do not force everything into "Purchases" to match AIS. The "GST Purchase" figure in AIS is an aggregate of the taxable value of B2B supplies your vendors reported in their GSTR-1 and e-invoices. It lumps trading purchases, expense invoices and capital goods into one bucket. Your P&L should still split these the normal way - purchases to the trading account, rent/legal/repairs/software to indirect expenses, and capital items to the balance sheet. Also remember 2B includes capital goods, and the comparison base is the taxable value, since expenses are booked net of ITC when you claim the credit.

On a discrepancy notice: first check whether it is actually a 143(1) adjustment or an e-campaign/insight flag - AIS variances usually arrive as the latter, through the compliance portal, not as a mechanical 143(1) adjustment. Either way, a reconciliation statement is the standard and accepted response: purchases + GST-billed expenses + capital purchases from registered vendors + RCM and ineligible-credit items = AIS GST purchase figure, with a second list of what AIS does not capture (salary, depreciation, unregistered vendors, pure-agent recoveries). Attach it in the response utility. You can also use the AIS feedback option online to mark the information as partially correct so the record shows your position even before any notice.

On your third question: there is no restriction at all. Deductibility of an expense under the Income-tax Act does not depend on the vendor's GST registration, and ITC claimed is neither income nor expense - it sits as a credit in the electronic credit ledger. Only forgone or ineligible ITC becomes part of cost.

suchitra perumal

27 Points Posted on 27 September 2026

Perfect explanation, Sir! Thank you so much for clearing up the confusion regarding AIS GST Purchase aggregates vs. Books classification and the reconciliation process. Extremely helpful!