AP use case · GST compliance

Your ITC is only as good as
your vendor's filing.

Under Section 16(2)(aa), input tax credit exists only when the invoice appears in your GSTR-2B - and with IMS live and GSTR-3B's ITC table hard-locking to 2B data, there is no manual override left. Finnoto reconciles books ↔ 2B ↔ IMS continuously, and holds cash until credit is safe.

ITC control tower

Every invoice, matched to 2B -
every rupee of ITC, accounted for.

ITC control tower · Nov 2026 · GSTR-2B generated 14th Live recon
₹48.2L
ITC in books this month
₹45.1L
Matched to GSTR-2B & accepted in IMS
₹3.1L
At risk - missing / mismatched in 2B
Vendor invoiceBooksGSTR-2BAction
Acme Supplies · INV-2290₹18,990₹18,990Matched · IMS accepted
Verma Logistics · 8812₹42,300₹42,300Matched · IMS accepted
Kova Packaging · KP-104₹1,28,400-! Not in 2B · vendor chased · payment hold
Shree Traders · ST-77₹96,200₹69,200✕ Value mismatch · IMS pending
Auto follow-up → Kova Packagingsent 15th · 09:20
"Invoice KP-104 (₹1,28,400 · GST ₹19,586) is not reflecting in our GSTR-2B for Nov. Please file / amend in your GSTR-1 by the 11th. GST amount is on hold until it reflects."
Payment rule applied
Hold ₹19,586 (GST portion) on Kova Packaging until KP-104 appears in 2B.
312 invoices matched · 2 exceptions → tickets #GST-114, #GST-115 · IMS: 310 accepted, 1 pending, 1 rejected · next 2B: 14 Dec

Illustrative product behaviour - values shown are examples.

Why it's hard today

Mismatched ITC is no longer
a month-end nuisance. It's cash.

The rules tightened: Rule 36(4) tolerance is zero, IMS actions are live on the portal, and GSTR-3B's Table 4A is hard-locking to 2B. Whatever isn't in 2B, you fund from working capital.

Credit you can't claim

If a vendor doesn't file GSTR-1 - or files late, or fat-fingers your GSTIN - the invoice never reaches your 2B. That ITC is blocked, and the GST you already paid the vendor sits stranded.

A deadline every month

2B generates on the 14th; untouched IMS invoices are deemed accepted. Excel-based recon once a quarter can't keep pace with a portal that moves monthly and locks 3B automatically.

Interest & scrutiny on mistakes

Wrongly availed and utilised ITC attracts 18% interest, DRC-03 reversals and departmental scrutiny. Claiming from books instead of 2B is now a direct audit flag.

Where standalone GST tools stop: Clear, Cygnet and IRIS tell you what mismatched. Finnoto is the payment layer - it can chase the vendor, park the ITC, and hold the GST portion of the payment until your credit is secured.
How Finnoto runs it

Recon that ends in an action,
not a spreadsheet.

1
Pull & match continuously
2B/2A and IMS data fetched from the portal; matched invoice-by-invoice against purchase books - GSTIN, invoice number, taxable value, tax heads.
2
Classify every gap
Matched · missing-in-2B · missing-in-books · value/tax mismatch · vendor GSTIN issues - each with an owner and a ticket.
3
Chase vendors automatically
Follow-up emails with the exact invoices and amounts, escalation cadence, and a vendor-wise compliance score that feeds payment terms.
4
Act where the money is
IMS accept/reject/pending managed from Finnoto; payment rules hold the GST portion for non-reflecting invoices; ITC register stays audit-ready.
FAQ

Frequently asked questions

What happens if a vendor invoice never appears in GSTR-2B?

Finnoto keeps it in the ITC-at-risk ledger, keeps chasing the vendor on an escalation cadence, and - if you enable the rule - holds the GST portion of that vendor's payment until the invoice reflects. You decide vendor-by-vendor how strict to be.

Does Finnoto handle IMS accept/reject/pending?

Yes. Recommended IMS actions come from the match result - matched invoices are accepted, unknown or wrong invoices flagged for rejection, and disputed ones kept pending - before 2B generation on the 14th.

How is this different from a GST recon tool?

Recon tools produce a mismatch report. Finnoto is your payables layer, so the same mismatch drives vendor communication, tickets, payment holds and the ERP posting - the loop actually closes.

Stop funding your vendors' late filings.

See your books ↔ 2B ↔ IMS position, live, with every rupee of at-risk ITC owned by someone.

Talk to us