GSTR-3B Table 4 ITC: How to Calculate Input Tax Credit from GSTR-2B Reconciliation

What is GSTR-3B Table 4?

GSTR-3B is the monthly (or quarterly for QRMP) summary return where registered persons report outward supplies, inward supplies, and tax liability. Table 4 specifically deals with Eligible ITC — the Input Tax Credit you are claiming for the tax period.

Table 4 is divided into sections:

• Table 4(A): ITC Available — ITC from all sources: imports, inward supplies from ISD, inward supplies from registered persons (GSTR-2B), and inward supplies from unregistered persons.
• Table 4(B): ITC Reversed — ITC that must be reversed under various rules: Rule 37 (180-day non-payment), Rule 42 (common credit), Rule 43 (capital goods), and others.
• Table 4(C): Net ITC Available — 4(A) minus 4(B). This is the ITC you can offset against output tax liability.
• Table 4(D): Ineligible ITC — ITC that was available but is not being claimed due to ineligibility under Section 17(5) or other provisions.

For most businesses, Table 4(A)(5) — ITC on inward supplies from registered persons — is the largest line item. This is directly derived from GSTR-2B reconciliation.

Table 4(A)(5): ITC from GSTR-2B reconciliation

Table 4(A)(5) reports ITC available from inward supplies received from registered persons — in other words, your purchase invoices that appear in GSTR-2B. The amounts are broken down by tax head:

The correct source for these figures is your GSTR-2B reconciliation — specifically, the sum of tax amounts on invoices you have matched, verified, and accepted. Not the raw GSTR-2B download. Not your purchase register total. Only reconciled and accepted ITC.

How to calculate Table 4 ITC from reconciliation

Follow this step-by-step process to derive filing-ready Table 4 figures:

1. Complete GSTR-2B reconciliation. Match purchase register against GSTR-2B. Categorize all invoices into matched, mismatched, missing, ineligible, and IMS pending buckets.
2. Resolve or defer exceptions. For matched invoices, proceed. For mismatched, claim the lower amount or defer until resolved. For missing from portal, do not claim. For ineligible, exclude. For IMS pending, wait for portal action.
3. Accept matched invoices. Human review and sign-off on every accepted match. This is your ITC claim basis — document who approved and when.
4. Sum accepted ITC by tax head. Total CGST, SGST, IGST, and CESS separately from accepted matches only.
5. Subtract reversals. Calculate Rule 37 reversals (unpaid invoices past 180 days), Rule 42/43 if applicable, and any other mandatory reversals. Report in Table 4(B).
6. Report ineligible ITC. Sum of ineligible invoices identified during reconciliation. Report in Table 4(D).
7. Calculate net ITC. Table 4(C) = 4(A) minus 4(B). This is what offsets your output tax liability.
8. Cross-check against GSTR-2B total. Your Table 4(A)(5) should be ≤ GSTR-2B total ITC. If higher, you are claiming ITC on invoices not in GSTR-2B — a direct compliance violation.

Eligible vs ineligible ITC: what goes where

Common Table 4 errors CA firms make

• Claiming ITC on unreconciled invoices: Using the raw GSTR-2B total without reconciliation. This includes invoices with tax mismatches, missing from books, and potentially ineligible entries.
• Double-counting IGST and CGST+SGST: An intrastate invoice has CGST and SGST — not IGST. Reporting IGST for an intrastate purchase inflates ITC and triggers mismatch with GSTR-2B.
• Ignoring credit notes: Claiming ITC on the original invoice amount when a credit note has reduced the liability. Over-claims ITC.
• Missing Rule 37 reversals: Not reporting ITC reversal for unpaid invoices in Table 4(B). Department data matching will catch this.
• Claiming ITC on missing-from-portal invoices: Booking ITC on invoices not in GSTR-2B, hoping the supplier will file later. This is not permitted.
• Rounding errors across tax heads: Small per-invoice rounding differences accumulate across thousands of invoices. Use consistent rounding rules and reconcile totals.
• No documentation trail: Filing Table 4 without a reconciliation working paper. During scrutiny, you cannot explain how you arrived at the figures.

Export workflow: from reconciliation to Table 4

The ideal workflow produces a Table 4 export directly from reconciliation data — eliminating manual transcription errors:

1. Upload purchase register and GSTR-2B into reconciliation software
2. Auto-match and categorize exceptions
3. Review and accept matched invoices (human sign-off)
4. Export GSTR-3B Table 4 breakdown — IGST, CGST, SGST, CESS totals from accepted matches
5. Export ineligible ITC total for Table 4(D)
6. Export Rule 37 reversal amounts for Table 4(B)
7. Cross-check: Table 4(A)(5) ≤ GSTR-2B total; net ITC = 4(A) − 4(B)
8. Enter figures in GSTR-3B on the portal (or through GSP if integrated)
9. Lock reconciliation period after filing — no further edits

Complytics generates this export in one click from accepted reconciliation matches. The export includes invoice-level detail behind every total — so if a department officer asks "how did you arrive at this IGST figure?", you produce the working paper in seconds, not days.

Period lock and audit trail

After GSTR-3B is filed, the reconciliation period should be locked. No further edits to accepted matches, no new uploads, no changes to exported figures. If amendments are needed (supplier filed late, credit note received), they go through a separate amendment workflow with full audit trail:

• Who requested the amendment and why
• What changed (invoice added, amount corrected, match status changed)
• Impact on Table 4 figures (ITC increase or decrease)
• Whether GSTR-3B amendment is required
• Approver sign-off with timestamp

This audit trail is your defense during department scrutiny. Officers increasingly request reconciliation working papers alongside GSTR-3B returns. A locked period with immutable logs demonstrates control and transparency.

QRMP filers: quarterly Table 4 with monthly reconciliation

Quarterly Return Monthly Payment (QRMP) filers file GSTR-3B quarterly but must reconcile GSTR-2B monthly. This creates a specific Table 4 workflow:

• Month 1 of quarter: Reconcile January GSTR-2B. Track accepted ITC but do not file GSTR-3B yet. Pay tax via PMT-06 if liability exceeds ITC.
• Month 2: Reconcile February GSTR-2B. Accumulate accepted ITC.
• Month 3 (filing month): Reconcile March GSTR-2B. Sum accepted ITC for all three months. Report cumulative Table 4 in quarterly GSTR-3B.

The risk for QRMP filers is greater: three months of reconciliation errors compound into one filing. Monthly reconciliation with period-level locking prevents end-of-quarter surprises.

How Complytics prepares Table 4 exports

Complytics derives GSTR-3B Table 4 figures directly from reconciliation — not from raw portal downloads:

• Table 4(A)(5) breakdown: IGST, CGST, SGST, CESS from accepted matches only
• Table 4(D) ineligible ITC total from flagged invoices
• Table 4(B) Rule 37 reversal amounts from unpaid invoice tracking
• Invoice-level detail behind every total for audit defense
• Export in Excel, CSV, or PDF with timestamp and approver attribution
• Period lock after filing with amendment workflow for post-filing changes

Complytics does not file GSTR-3B on the portal — it prepares the Table 4 numbers your team enters during filing. The CA reviews, approves, and files. Complytics ensures the numbers are right before you file.

Frequently asked questions

Can I claim ITC in Table 4 without GSTR-2B reconciliation?

Technically you can enter any figure in GSTR-3B Table 4, but claiming ITC on invoices not verified through reconciliation is a compliance risk. Department systems cross-match GSTR-3B ITC claims against GSTR-2B data. Unreconciled claims are flagged in mismatch reports.

Should Table 4(A)(5) match the GSTR-2B total exactly?

Not necessarily. Table 4(A)(5) should be equal to or less than the GSTR-2B total. It will be less if you exclude mismatched, ineligible, or unresolved invoices. It should never exceed the GSTR-2B total.

How do I handle ITC on invoices received but not yet in GSTR-2B?

Do not claim ITC on invoices not in GSTR-2B. Wait for the supplier to file GSTR-1 and the invoice to appear in a subsequent GSTR-2B. Claim ITC in the period when it appears, subject to Section 16(4) time limits.

What if I discover an error in Table 4 after filing GSTR-3B?

File a GSTR-3B amendment for the relevant tax period. Document the error, the correction, and the reconciliation amendment that caused it. Maintain the audit trail linking the original filing, the error discovery, and the amendment.

Does Complytics file GSTR-3B directly?

No. Complytics prepares filing-ready Table 4 ITC exports from your reconciliation data. Your CA team reviews the export and enters the figures in GSTR-3B on the GST portal. This keeps the CA in control of every filing decision.

Related articles

• GSTR-2B Reconciliation: The Complete Guide
• Rule 37 ITC Reversal: The 180-Day Payment Rule
• Step-by-Step GSTR-2B Reconciliation Guide