Input Tax Credit reconciliation required before September return to preserve credits and correct outward supply reporting errors.
Taxpayers must claim any unclaimed ITC for FY 2020-21 and reconcile ITC shown in GSTR 2A/2B with the inward register and books, following up with suppliers for missing invoices. ITC that relates to mixed taxable and exempt supplies must be apportioned and finalised for the year before the September filing, and ITC claimed where consideration remains unpaid must be reversed unless payment has been made. Outward supplies must be reconciled with returns so classification errors can be corrected and credit notes for FY 2020-21 issued by the September return. (AI Summary)