Wrong ITC entry in GSTR2B

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Manoj Punjabi

Accountant

269 Points Posted on 15 October 2024

One wrong entry of ITC showing in GSTR2B, supplier wrongly entered our GST number.

1) How to reverse this ITC in GSTR3B?

If we reverse this ITC in current month, our ITC claim will be correct.

2) But suppose the said supplier reverse it in next month by amending GST number to give credit to actual customer, then our actual ITC of next month will show lesser ITC by that amount. What shall we do in that case?

Because we already reversed that ITC in previous month, now reversal by supplier means double reversal of our ITC.

Please guide.

Replies (2)

Quick Summary

This discussion addresses an incorrect ITC entry in GSTR2B due to a supplier's mistake. It provides guidance on how to reverse this wrongful ITC in GSTR3B for the current month. The advice also covers potential double reversals if the supplier corrects the entry in a subsequent month, and explains how to manage these adjustments to ensure accurate ITC claims. Additionally, it mentions the new Invoice Management System (IMS) feature for rejecting invoices before GSTR-2B generation.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 16 October 2024

1. Reversing ITC in GSTR3B: - You can reverse the wrong ITC in the current month by debiting the ITC ledger and crediting the liability ledger. - In the GSTR3B return, report the reversal in the "Adjustments" table (Table 13) under "Additions" (debit). 2. Impact on next month's ITC: - If the supplier corrects the GST number and reverses the ITC in the next month, your ITC claim for that month will indeed be lower by that amount. - To adjust this, you can claim the corrected ITC in the next month's GSTR3B return by debiting the liability ledger and crediting the ITC ledger. - Report the corrected ITC in the "Adjustments" table (Table 13) under "Less: ITC Reversed" (credit).. - Keep a record of the incorrect ITC, reversal, and correction to justify the adjustments in your GSTR3B returns.

Aashok Kumar Sharma

Finance/Compliance Consultant

75663 Points Posted on 07 November 2026

Reject it in IMS and don't claim it:

• From October 2024, the Invoice Management System lets you Accept, Reject or keep Pending each inward invoice. Reject the wrongly reported invoice (wrong GSTIN) before generating GSTR-2B for the month. Then it won't appear in your ITC.

• If it already appeared in 2B and you didn't claim it in 3B: no reversal needed. Just don't claim it. Keep a note for GSTR-9 Table 8.

• If you claimed it in 3B: reverse it in Table 4(B)(2), with interest if utilised.

• Ask the supplier to amend GSTR-1 (move the invoice to the correct GSTIN). Otherwise the actual buyer won't get ITC, and you may get a notice for an unreported purchase (AIS of GST).