Rule 36(4): input tax credit limited to GSTR-2B

How the rule evolved

Rule 36(4) was introduced in October 2019 and initially allowed provisional credit of 20% above the eligible amount reflected in GSTR-2A. The extra margin was later reduced to 10% and then 5%. From 1 January 2022, the rule allows credit only for invoices and debit notes furnished by suppliers in GSTR-1 or IFF and communicated in GSTR-2B. Section 16(2)(aa), effective from the same date, gives this a statutory basis.

What it means in practice

• Claim credit in GSTR-3B only to the extent shown in GSTR-2B, subject to other eligibility rules.
• With the Invoice Management System, accepted and deemed-accepted invoices feed into GSTR-2B; rejected invoices do not.
• Keep a list of invoices received but missing from GSTR-2B and follow up with suppliers.
• Claim the credit later, in the month it appears, within the Section 16(4) time limit.

Consequences of excess claims

If credit in GSTR-3B exceeds GSTR-2B by more than the notified limits, a DRC-01C intimation under Rule 88D is issued. Larger differences can also lead to scrutiny under Section 61 or a demand. Monthly reconciliation of purchase registers with GSTR-2B is the main control.

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.