☐ Is GSTR-2B reviewed monthly by 14th? ☐ Has reconciliation with own purchase register been done? ☐ Have supplier defaults been identified? ☐ Are restricted-credit categories under sub-s. (2)(b) being applied? ☐ For mismatches, has…
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☐ Is GSTR-2B reviewed monthly by 14th? ☐ Has reconciliation with own purchase register been done? ☐ Have supplier defaults been identified? ☐ Are restricted-credit categories under sub-s. (2)(b) being applied? ☐ For mismatches, has…
Section 38 GSTR-2B / IMS compliance — checklist (19 items)
Section 38 GSTR — 2B / IMS compliance — checklist (19 items)
☐ Is GSTR-2B reviewed monthly by 14th?
☐ Has reconciliation with own purchase register been done?
☐ Have supplier defaults been identified?
☐ Are restricted-credit categories under sub-s. (2)(b) being applied?
☐ For mismatches, has supplier engagement been initiated?
☐ Has Rule 88C/88D IMS discipline been complied with?
☐ For supplier defaults, has bona-fide-recipient defence framework been built?
☐ Has coordination with s. 16(2)(aa) + (ba) been done?
☐ For pre-October 2022 periods, has historical framework been applied?
☐ For post-October 2022 periods, has FA 2022 substituted framework been applied?
☐ Has Bharti Airtel substance-over-form discipline been applied?
☐ Has Mafatlal procedural-fairness framework been observed?
☐ Has Mohit Minerals constitutional framework been applied?
☐ Has Vatika prospective-operation been applied?
☐ Has Whirlpool framework been considered for disputes?
☐ Has Suncraft Energy / D.Y. Beathel framework been applied for bona-fide defence?
☐ Has documentary trail been preserved?
☐ Has coordination with broader compliance framework been done?
☐ Has the file been reviewed for audit-defensibility?
Worked examples — five live scenarios
Example 1 — Standard GSTR-2B reconciliation
Facts: Recipient's GSTR-2B for August 2025 matches purchase register entries.
Analysis: Sub-s. (2)(a) eligible ITC. Recipient claims ITC subject to s. 16 conditions. Standard compliance.
Result: Compliant ITC claim.
Example 2 — Supplier non-filing default
Facts: Recipient paid supplier in full + received supplies. Supplier did not file GSTR-1. GSTR-2B does not reflect.
Analysis: s. 16(2)(aa) breach — supplier reporting missing. Recipient's ITC vulnerable. Bona-fide-recipient defence (Suncraft Energy / D.Y. Beathel HC line) + Bharti Airtel substance-over-form framework. Documentary trail of payment + receipt + supplier engagement.
Result: Bona-fide-recipient defence framework operative.
Example 3 — Restricted-credit category supplier
Facts: Recipient's supplier falls in sub-s. (2)(b)(ii) — supplier defaulting in tax payment for prescribed period.
Analysis: ITC restricted under s. 38. Recipient cannot claim ITC. Practitioner advice — supplier-engagement; explore substitute suppliers; for ongoing supplies, restriction discipline.
Result: Restricted-credit framework operates.
Example 4 — Pre-FA 2022 transition
Facts: FY 2021-22 ITC claim. Rule 36(4) framework (10% cap).
Analysis: Pre-October 2022 framework. Rule 36(4) ITC cap applies — ITC limited to 10% over GSTR-2A reflected amount. Practitioner discipline — for past periods, historical framework. For ongoing FY 2024-25, GSTR-2B / IMS framework.
Result: Transitional framework.
Example 5 — IMS mismatch + reply
Facts: Supplier and recipient have invoice mismatch (different amounts). IMS flags.
Analysis: Rule 88C/88D framework. Recipient must reply within prescribed period + comply with discipline. Either accept supplier's version, or pay differential. Practitioner discipline — periodic mismatch review.
Result: IMS framework operative.
Planning and litigation strategy
Litigation defence
Cross-references