Why your ITC keeps getting reversed (and what to fix upstream)

Reversals almost never start in your return. They start with a vendor who filed GSTR-1 late, or filed it with your GSTIN mistyped by one character.

What we check first

We match purchase register against 2B line by line every month, not at year end. The gap list goes back to the vendor while the invoice is still recent enough for them to care.

An ITC mismatch found in month one is a phone call. Found in month eleven, it is a write-off.

If you are carrying a large unreconciled balance right now, the first useful step is ageing it by vendor rather than by amount.

This note is general information current as at the date of publication. It is not advice on your specific facts — please speak to us before acting on it.