This is the last month to claim ITC. So , refer to last month’s GSTR 3B and pull out the unmatched ITC listing. Send the invoices detail to respective vendors. Request them to check and confirm those invoices. If they have correctly filed ask them to share the screenshot of GSTR 1. And , in case there is an incorrect reporting or not reported then they must upload those invoices in October month GSTR 3B to be filed on or before 11th of November. If by any chance the said correction is missed to be done by the vendor then the corresponding ITC to the buyer is foregone forever.
Time is short for 11th November. Also the Diwali festival is there from 8th onwards. All taxpayers will attempt to complete their filing by 6th or 7th. So, perform the activities of communicating with the vendor today.
This last movement activity should be avoided. The follow up activity should be done on a monthly basis.
Align books of accounts
This is also the time to align your books of accounts. Since the invoices of last financial year 2025-26 cannot be claimed after the October month GST 3b is filed, the invoices of the unclaimed last year invoice should not be shown as current assets in the balance sheet. It will no longer be kept in a GST receivable account. The same should be brought to the Profit and Loss account. Or it should be adjusted to the vendor account if the reason for mismatch is that of vendor’s.
Invoices are there in 2B but they are not accounted for in books.
The invoices are appearing in 2b report but the invoices are either not received from the vendor or from the team within the organisation. The reason could be either the service has not completed or service is in dispute.
Call for the invoices from the vendor or from the team within organisations and book them and claim the ITC in the October month 3B. If the dispute continues then reverse the ITC at a later period.
Irrelevant invoices
It is also seen that some irrelevant invoices are also populating in 2B. Either that has been wrongly uploaded by some other vendor into our GSTIN or they are the third party service providers. We have been accounting for the invoices of agents but not the actual service provider. The example is air lines viz Indigo, Spicejet, who issues invoices in the name of employees and mentions the company’s GSTIN. But as the tickets are booked by the agent Thomas Cook for instance. The invoices of airlines remain as unclaimed in the 2B report. Take that ITC. It is an eligible ITC.
Ineligible ITC
Life insurance, medical insurance that are ineligible, the ITC on those expenses are not separately accounted in the books of accounts. As such the ITC in 2b report remains unmatched. It should be shown in 3B as a permanent reversal.
In effect, from November month onwards the 2B report and ITC listing should have only invoices of financial year 2026-27.
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