How to Fix ‘ITC Not Reflecting in GSTR-2B’ Error on GST Portal – Complete 2026 Guide

Rahul runs a small manufacturing unit in Pune, specializing in high-precision auto components. Last month, he filed his GSTR-3B confidently, claiming ₹2.8 lakh in Input Tax Credit (ITC) on raw materials he had purchased. He had the physical invoices, the goods had arrived, and he’d paid his suppliers in full.

Suddenly, his filing for the following month got blocked. A red alert flashed on his GST dashboard: DRC-01C Intimation Issued. Rahul was baffled. It turned out that nearly half of his invoices had vanished from his GSTR-2B. One supplier had their GSTIN canceled retroactively; another simply forgot to hit ‘submit’ on their GSTR-1; a third had uploaded the invoice but failed to pay their own taxes. Rahul was looking at a potential ₹50,000+ reversal, plus a crushing 18% interest penalty.

Sound familiar? If you are a business owner or an accountant in India in 2026, this isn’t just a “technical glitch”—it’s a daily survival battle.

In 2026, the GST landscape has shifted drastically. Gone are the days of “provisional ITC” or the 5% cushion we once had. Under the strict amendments to Section 38 and Rule 36(4), GSTR-2B is now the final, undisputed authority. If it’s not in the 2B, you don’t get the credit. Period. With the introduction of the Invoice Management System (IMS) and harder system validations that block GSTR-3B filing for even a ₹1 mismatch, the stakes have never been higher.

This Article will help you to get out of “missing ITC” issue using the exact strategies I use for my clients.

What Exactly Causes ITC to Not Show in GSTR-2B?

Understanding why the error occurs is the first step to fixing it. In 2026, the portal is smarter, but the rules are stricter. Here is a breakdown of why your ITC might be missing:

Note: Thousands of taxpayers received Section 73 notices in late 2025 and early 2026 purely because they ignored GSTR-2B mismatches and manually “forced” their ITC claims in GSTR-3B. Don’t be one of them.

Step-by-Step Fix Guide: How to Resolve ITC Mismatches

If your ITC is not reflecting in GSTR-2B, do not panic and do not—I repeat, do not—just manually override the figures in GSTR-3B. The system will likely block your filing or trigger an automated DRC-01C notice. Follow these steps instead.

1. The 14th of the Month Ritual: Download & Reconcile

In 2026, GSTR-2B is generated on the 14th of every month. It is static.

• Action: Log in on the 15th. Download the GSTR-2B Excel file.
• Comparison: Compare this Excel sheet with your Purchase Register (Books).
• Pro Tip: Use the “Filing Date” column in the Excel to see if your supplier filed after the deadline. If they filed on the 14th, that credit will only show up in next month’s 2B.

2. Check the IMS Dashboard (The 2026 Game Changer)

The Invoice Management System (IMS) is now mandatory. If a supplier uploads an invoice, it sits in your IMS dashboard waiting for your action.

• The Fix: If an invoice isn’t in your GSTR-2B, it might be sitting in the “Pending” bucket of the IMS.
• Action: Mark it as “Accepted” before the 3B filing date. If you “Reject” it or leave it “Pending,” it will not flow into your GSTR-2B as eligible credit.

3. Follow Up with Suppliers (The “Soft” Fix)

Most ITC issues are supplier-side errors. You need a paper trail to prove you acted in good faith if the tax department ever sends an ASMT-10 notice.

• Template for Supplier:“Dear [Supplier Name], we are unable to see Invoice No. [X] dated [Date] for ₹[Amount] in our GSTR-2B for [Month]. This is impacting our cash flow and may lead to a DRC-01C notice. Please verify if you have filed your GSTR-1 and if our GSTIN [Your GSTIN] was entered correctly. Requesting an immediate update.”

4. Handling the “Ineligible” Tag

Sometimes the invoice is there, but it’s marked as “Ineligible” in GSTR-2B.

• Check PoS: If you are in Maharashtra and the supplier charged CGST/SGST for a hotel in Delhi, that ITC is ineligible.
• Check Section 38 Blocks: In 2026, if your supplier is a “risky taxpayer” (newly registered or high-risk category), the system might temporarily block that ITC. You cannot fix this manually; the supplier must clear their “risky” status first.

5. Dealing with DRC-01C Intimations

If you claimed more ITC in GSTR-3B than what was available in GSTR-2B (even by a small margin), you will receive a DRC-01C.

• The Fix: You have 7 days to respond.
• If you made a mistake: Pay the difference via DRC-03 with interest.
• If the system is wrong: Provide a detailed explanation. For example: “The ITC of ₹10,000 relates to an Import of Goods (ICEGATE), which often takes 2-3 extra days to sync with GSTR-2B.”

6. Portal Workarounds for Technical Glitches

Sometimes, it’s just the GST portal being difficult.

• The “Incognito” Trick: Always open the GST portal in an Incognito/Private window. The portal’s heavy cache often shows outdated data.
• Refresh B2B Tables: Go to the GSTR-1/IFF section of the supplier (if you have access) and then check your “View GSTR-2B.”
• Off-Peak Hours: Try downloading reports before 9:00 AM or after 10:00 PM. The server load in 2026 is still a challenge during peak filing windows (18th–20th).

[Screenshot: GSTR-2B download section and IMS dashboard view]

Prevention Tips for 2026 Onward

The 2026 GST regime rewards the proactive and punishes the reactive. Here is a checklist to ensure you never face a massive GSTR-2B ITC mismatch fix situation again.

Monthly Compliance Checklist

New 2026 Rules to Watch

• Real-time IMS Alerts: You now get SMS alerts when a supplier “deletes” or “amends” an invoice you previously accepted. Act on these immediately.
• Hard Blocks: The portal now prevents the “Offset Liability” button from working if the GSTR-3B vs GSTR-2B variance exceeds a specific threshold (currently 0% for most, with a tiny ₹1-10 rounding tolerance).

What If Nothing Works? Escalation Steps

You’ve reconciled, you’ve talked to the supplier, and you’ve cleared your cache—but the ITC is still missing. What next?

1. Raise a Grievance Ticket: Use the GST Self-Service Portal. Attach your purchase register and the supplier’s GSTR-1 filing proof (if they provided it).
2. Contact the Jurisdictional Officer: If the amount is large (e.g., >₹5 Lakhs), write a formal letter to your Range Superintendent. Explain the mismatch and provide the “Good Faith” evidence (payment via banking channels, E-way bills, etc.).
3. The High Court Route: In recent 2025 and 2026 cases, several High Courts have ruled that ITC cannot be denied to a genuine buyer solely because of a supplier’s default, provided the buyer can prove the transaction occurred. While this is a last resort, it is a powerful shield against mechanical rejections by the portal.

Frequently Asked Questions (FAQs) on GSTR-2B ITC Mismatches (2026 Guide)

Reconcile Early, Save Cash Flow

The “ITC not reflecting in GSTR-2B” error is more than just a nuisance; in 2026, it is a direct threat to your business’s liquidity. The GST portal has evolved into a rigid, validation-heavy system. The only way to survive is to be more organized than the system itself.

The Golden Rule: Never wait until the 20th to check your ITC. By then, it’s too late to fix supplier errors or handle IMS actions. Start your reconciliation on the 14th, act on the 15th, and file by the 18th.

Struggling with a complex ITC mismatch or a DRC-01C notice? Don’t let penalties pile up. Drop your GSTIN or your specific query in the comments below, or reach out to us at taxgst.in for a professional consultation. We’ve helped hundreds of businesses navigate these hurdles—we can help you too.

C.K. Gupta

Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.