GSTR-9C Table 12: Reconciliation of Net Input Tax Credit

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Part IV reconciles credit in the books against credit in the return, and the two move on different clocks — booked when the invoice arrives, claimed when GSTR-2B allows. Two adjustment rows handle the gap, and a third difference has now appeared that nobody created.

Table 12A is "ITC availed as per audited Annual Financial Statement for the State/UT" — "ITC availed (after reversals)", derived GSTIN-wise for multi-State entities. 12B (+) is "ITC booked in earlier Financial Years claimed in current Financial Year"; 12C (−) is "ITC booked in current Financial Year to be claimed in subsequent Financial Years". 12D auto-totals; 12E is "ITC claimed in Annual Return" — specifically "Net ITC available for utilization as declared in Table 7J of GSTR-9"; 12F is the unreconciled difference, ITC 1.

12A: getting to a GSTIN-level figure

"Right in the beginning, information of all the tax account codes/ledger names should be obtained from the registered person in which he enters the ITC availed."

The split depends on how the ledgers are kept: "In case there are separate ledgers, the amounts are directly relatable to the GSTIN, the information shall be collated from the net of debits and credits (other than payments) of such account codes. However, in case a single accounting ledger is maintained for all the States, it will be a challenge for the registered person to identify the amount of ITC availed for any of the particular registration."

Validation: "The total of these columns should be reconciled with the balance of such accounts as they appear in trial balance of the particular GSTIN." And "The column is derived from the books of accounts and thus there is no need to revise the same."

Where one combined tax account exists, the Guide gives a seven-line reconciliation to unpick it — opening balance, tax payable, tax payable reversed (credit notes), ITC availed, ITC reversed, ITC reclaimed, tax paid by cash ledger, closing balance.

12B and 12C: the timing pair

12B adds "Any ITC which was booked in the audited annual financial statement of earlier financial year(s) but availed in the ITC ledger in the financial year for which the reconciliation statement is being filed. This shall include transitional credit which was booked in earlier years but availed during financial year 2017-18."

12C deducts "Any ITC which has been booked in the audited annual financial statement of the current financial year but the same has not been credited to the ITC ledger for the said financial year" — that is, credit "availed in the returns of FORM GSTR-3B of next financial year (i.e. upto 30th November of the next financial year)."

The two chain together: "From FY 2018-19 and onwards, this Table [12B] would have the same amount as reported in Table 12C of FORM GSTR-9C of the previous financial year."

And 12C ties across forms: "Value in this Table should be equal to the amount reported in Table 13 of FORM GSTR-9." GSTR-9 Part V, Tables 12 and 13 →

The Guide's illustration for 12C — of three amounts booked in the August 2022 GST receivable ledger, claimed in August 2022 (₹3,00,000), December 2022 (₹1,50,000) and May 2023 (₹2,00,000) — only the last, ₹2,00,000, goes in 12C. Credit claimed within the same financial year never enters the row.

Two exclusions to note:

• A credit neither booked nor claimed in the earlier year, then taken in both in the later year, does not go to 12B — "such cases would not be reported in this column, since this should be reported in Table 12A."
• Unreconciled GSTR-2A entries do not go to 12C — "The amounts appearing in FORM GSTR-2A could be for various reasons including vendor uploading transactions with the wrong GSTIN. This credit cannot be availed by the recipient since the purchase does not belong to him."

And for FY 2017-18, 12B "should ideally be zero" apart from transitional credit, drawn from "the claims of FORM GST TRAN-I which were booked in the earlier periods" — for example, the carry-forward balance of Cenvat Credit of Excise Duty. The Guide's worked case: of TRAN-1 comprising ₹15,00,000 carry-forward Cenvat and ₹4,00,000 credit on opening stock, only the ₹15,00,000 goes in 12B, because "TRAN-1 credit on stock not recorded in books and hence would not form part of this Table but the credit would be required to be disclosed at Table 12A."

With a caution: "One should be cautious of not adding all transitional amounts as filed in FORM GST TRAN-1", since it "may include certain transactions impacting output tax."

Both 12B and 12C were optional for FY 2017-18 to FY 2020-21.

12F, and the difference created by the FY 2024-25 change

"Table 12F… provides for the difference between the ITC as computed from the books of account in Table 12D and ITC as claimed for the financial year in Table 7J of annual return."

And then the new problem:

"Owing to the updated requirements in Table 6 of Form GSTR-9 — which now mandate reporting only the transactions pertaining to the current financial year — the Net ITC value in Table 7J does not gross up the full amount of ITC claimed as per Table 6.1A, even if that amount is already recorded in the taxpayer's books of accounts. Instead, any such discrepancy arising from this exclusion will be captured and reconciled as a difference in Table 12F of Form GSTR 9C."

This is the reconciliation-side consequence of Table 6A1. Preceding-year credit availed in the current year sits in GSTR-9's Table 6A1, is stripped out to derive 6A2, and therefore does not flow into 7J — while the books recorded it. The gap lands in 12F and must be explained in Table 13. Table 6A1 and its blind spot →

Table 13: reading the sign

"While Table 12F is the differential value and has no source, Table 13 seeks reasons."

If positive — books exceed the return — the reasons are:

• "the amount of ITC for the financial year claimed in Table 13 of the annual return" — credit taken in the next year's returns;
• "the amount of ITC available but not availed", being either "Ineligible ITC not availed in the return" or "ITC which has lapsed as not availed."

If negative — the return exceeds the books — "the matter is of concern as it is a clear indication of more than available ITC claimed":

• "ITC of another GSTIN claimed in returns of other GSTIN";
• "IGST on imported goods used as FOC replacement warranty (customs duty + IGST paid by Exporter of original equipment)";
• "Duplicate ITC availed";
• "ITC of subsequent year where goods/services were received later but their invoice was received prior was availed."

The fourth is the section 16(2)(b) failure — invoice in hand, goods not yet received — and is the commonest innocent explanation for a negative 12F.

Key takeaways

• 12A is ITC per the books, after reversals, derived GSTIN-wise; validate against the trial balance of that GSTIN.
• Where a single tax ledger serves all States, unpick it through the seven-line reconciliation.
• 12B adds last year's booked credit claimed this year; 12C deducts this year's booked credit claimed next year.
• This year's 12C becomes next year's 12B, and 12C should equal Table 13 of GSTR-9.
• Credit booked and claimed in the same year never enters 12B or 12C.
• Unreconciled GSTR-2A entries do not belong in 12C — wrong-GSTIN uploads are not the taxpayer's credit at all.
• For FY 2017-18, 12B holds only TRAN-1 credit booked earlier, such as carry-forward Cenvat; TRAN-1 stock credit goes to 12A.
• 12F now carries a structural difference because Table 7J excludes Table 6A1 credit that the books recorded.
• A negative 12F signals wrong-GSTIN, duplicate or premature credit — or an invoice received before the goods.

Read next

• GSTR-9C Table 14: Expense-Head-Wise ITC Reconciliation
• GSTR-9C Tables 15 and 16: Unreconciled ITC and Tax Payable
• GSTR-9 Table 6A and the New Table 6A1

Disclaimer: Positions stated as on 5 September 2026, based on Form GSTR-9C and its instructions, Form GSTR-9, section 16 of the CGST Act, 2017 and Form GST TRAN-1, as reproduced in the ICAI Technical Guide on GST Reconciliation Statement (Form GSTR-9C).