ITC Not Auto-Populating in GSTR-3B Despite Ledger Balance

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19 Points Joined November 2024

I have ₹902 balance in Electronic Credit Ledger (March ₹456 + April ₹446) but GSTR-3B for May 2025 only shows ₹333.05 ITC from GSTR-2B.

When I try to manually enter ₹1,235.05 (902+333.05), system shows error:

"Input tax credit values are at variance with auto-populated data in table 4A. Upward variance is in contravention to Rule 36(4) of CGST Rules, 2017."

Questions:

  1. Why doesn't previous months' unused ITC appear in current GSTR-3B?
  2. How to utilize the ₹902 accumulated credit from March/April?
  3. Will this amount expire if not used, and when?
  4. Is this a system limitation or correct interpretation of Rule 36(4)?

Current Status:

  • Electronic Credit Ledger: ₹902 balance
  • May GSTR-2B: ₹333.05 ITC available
  • GSTR-3B allows only ₹333.05, not full ₹1,235.05

Any guidance on proper utilization of accumulated ITC would be appreciated.

Thanks in advance!

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On 17 June 2025 at 10:42 Report
Replies (2)
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Master in Accounts & high court Advocate
9434 Points Joined December 2011

Understanding the Issue The issue arises from the difference between the Electronic Credit Ledger balance and the ITC reflected in GSTR-3B. You have ₹902 in your Electronic Credit Ledger, accumulated from March (₹456) and April (₹446), but your GSTR-3B for May 2025 only shows ₹333.05 ITC from GSTR-2B. Why Previous Months' Unused ITC Doesn't Appear in Current GSTR-3B The GSTR-3B form auto-populates ITC claims from GSTR-2B, which only reflects ITC for the current month. Previous months' unused ITC doesn't automatically appear in the current GSTR-3B because the system is designed to reconcile ITC claims based on current period data.

Utilizing Accumulated Credit To utilize the ₹902 accumulated credit, you can claim it in future tax periods when you have sufficient output tax liability. Ensure that you regularly reconcile your GSTR-2B and GSTR-3B to accurately claim ITC. Expiration of Accumulated ITC The accumulated ITC doesn't expire, but you must utilize it within the specified time frame. 

According to recent updates, taxpayers can't file GSTR-3B after three years from the due date, which might impact your ability to claim ITC. Interpretation of Rule 36(4) The error message is due to the system enforcing Rule 36(4), which restricts upward variance in ITC claims beyond what's auto-populated in Table 4A. This rule allows ITC claims only if they appear in GSTR-2B, without any additional or provisional claims. Guidance on Proper Utilization - *

 

Reconcile GSTR-2B and GSTR-3B*: Regularly reconcile your GSTR-2B and GSTR-3B to ensure accurate ITC claims. - 

*Verify ITC Eligibility*: Confirm that the ITC is eligible and properly reflected in your Electronic Credit Ledger. - 

*Claim ITC in Future Periods*: Claim the accumulated ITC in future tax periods when you have sufficient output tax liability. -

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On 17 June 2025 at 15:54
User Avatar

Master in Accounts & high court Advocate
9434 Points Joined December 2011

Understanding the Issue The issue arises from the difference between the Electronic Credit Ledger balance and the ITC reflected in GSTR-3B. You have ₹902 in your Electronic Credit Ledger, accumulated from March (₹456) and April (₹446), but your GSTR-3B for May 2025 only shows ₹333.05 ITC from GSTR-2B. Why Previous Months' Unused ITC Doesn't Appear in Current GSTR-3B The GSTR-3B form auto-populates ITC claims from GSTR-2B, which only reflects ITC for the current month. Previous months' unused ITC doesn't automatically appear in the current GSTR-3B because the system is designed to reconcile ITC claims based on current period data.

Utilizing Accumulated Credit To utilize the ₹902 accumulated credit, you can claim it in future tax periods when you have sufficient output tax liability. Ensure that you regularly reconcile your GSTR-2B and GSTR-3B to accurately claim ITC. Expiration of Accumulated ITC The accumulated ITC doesn't expire, but you must utilize it within the specified time frame. 

According to recent updates, taxpayers can't file GSTR-3B after three years from the due date, which might impact your ability to claim ITC. Interpretation of Rule 36(4) The error message is due to the system enforcing Rule 36(4), which restricts upward variance in ITC claims beyond what's auto-populated in Table 4A. This rule allows ITC claims only if they appear in GSTR-2B, without any additional or provisional claims. Guidance on Proper Utilization - *

 

Reconcile GSTR-2B and GSTR-3B*: Regularly reconcile your GSTR-2B and GSTR-3B to ensure accurate ITC claims. - 

*Verify ITC Eligibility*: Confirm that the ITC is eligible and properly reflected in your Electronic Credit Ledger. - 

*Claim ITC in Future Periods*: Claim the accumulated ITC in future tax periods when you have sufficient output tax liability. -

Reply
On 17 June 2025 at 19:02


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