GST

Input tax credit: five mistakes that cost businesses money

Most ITC losses are avoidable. They come from reconciliation gaps, not from complex law.

29 July 2026 · 4 min read

Credit is only as good as the supplier's compliance. If a vendor does not report an invoice, the credit does not appear in GSTR-2B and cannot be claimed in that period.

The recurring problems we see are: claiming credit without matching GSTR-2B, missing the time limit for availing credit, claiming on blocked items, ignoring the payment condition within 180 days, and failing to reverse credit relating to exempt supplies.

The fix is process, not law. Reconcile purchase registers with GSTR-2B every month, keep a follow-up list of non-reporting suppliers, and document any credit consciously deferred so it is not lost at year end.

Official sources

Rates, limits and due dates change by notification. Always confirm the current position on the department portal before acting.

This article is general information, not advice for a specific case. Please speak to us before acting on it.

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