Supplier didn’t file GSTR-1? What happens to your input tax credit

Last reviewed: 27 September 2026 · By the GSTRisk team · General information, not tax advice.

You paid the supplier, including GST, and you have a proper tax invoice. But the invoice is not in your GSTR-2B because the supplier has not reported it in their GSTR-1. Here is what that means for your input tax credit (ITC) and what you can do.

Why the supplier’s GSTR-1 decides your credit

Section 16(2)(aa) of the CGST Act, in force from 1 January 2022, allows ITC only when the supplier has furnished the invoice details in their outward supply statement (GSTR-1 or IFF) and those details have been communicated to you. Rule 36(4) was amended at the same time, so credit can be taken only for invoices that appear in your GSTR-2B. The earlier provisional credit of 5% to 10% for invoices not yet uploaded no longer exists.

Since October 2024 the GST portal also has the Invoice Management System (IMS). Only invoices your supplier has saved or filed in GSTR-1, IFF or GSTR-1A appear there. You can accept, reject or keep them pending, and invoices you take no action on are treated as accepted into GSTR-2B. An invoice the supplier never reports simply never appears.

The other conditions still apply

• You must hold the tax invoice or debit note.
• You must have received the goods or services.
• The tax must actually have been paid to the government by the supplier.
• You must have filed your own return.
• You must pay the supplier within 180 days of the invoice date, or reverse the credit with interest until you do.

Deadlines you cannot miss

Under Section 16(4), ITC for an invoice cannot be taken after the due date of the return for November of the following financial year, or the date you file your annual return, whichever is earlier. If the supplier reports the invoice after that date, the credit may be lost.

There is also a hard stop on the supplier’s side. Following the Finance Act 2023 and a GSTN advisory, returns such as GSTR-1 and GSTR-3B cannot be filed once three years have passed from their due date. The portal began enforcing this in 2025. Once that point passes, the supplier cannot fix old missing invoices at all.

What to do, step by step

1. Compare every month. Match your purchase register with GSTR-2B (or IMS) each month and list invoices that are missing.
2. Check the supplier’s filing record. Use Show Filing Table on the portal to see whether they have filed GSTR-1 for that period.
3. Follow up in writing. Send the supplier the invoice numbers, dates and amounts that are missing and ask them to report them in their next GSTR-1 or amend through GSTR-1A.
4. Protect your payment. Many businesses hold back the GST portion of the payment until the invoice appears in GSTR-2B, and put this in their purchase terms. Discuss the approach with your accountant.
5. Keep evidence. Keep the invoice, proof of payment, proof of receipt and your follow-up emails.
6. Stop buying if it continues. A supplier who repeatedly does not file is a risk to your credit and may have their registration cancelled.

If the supplier’s registration is cancelled

Check the cancellation date on the GST portal. Invoices raised after cancellation are generally not valid tax invoices for claiming credit. Speak to your chartered accountant about invoices close to the cancellation date and about any recovery from the supplier.

Prevention is cheaper

Most of these problems can be caught before the first payment: verify the GSTIN, check that the status is active and look at the filing record. The GSTRisk supplier watchlist re-checks your suppliers’ registration status every 30 days and emails you when something changes.

Sources

• Vaish Associates: ITC limited to GSTR-2B (Section 16(2)(aa), Rule 36(4))
• GSTN advisory on the Invoice Management System (IMS)
• ClearTax: Section 16(4) time limit for ITC
• Taxmann: GSTN advisory on the three-year bar on filing returns
• ClearTax: how to check if a vendor has filed GST returns