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GST Provisional Credit: Auto-Restore

Understanding provisional input tax credit in GST and how to restore credit after auto-reversal.

GetYourCA Team
1 March 2025·Updated 9 April 20261 min read12.5K views
"Provisional Credit""ITC""Auto-Restore""GST"

GST Provisional Credit: Auto-Restore

What is Provisional Credit?#

Auto-populated ITC from supplier's GSTR-1.

Process#

  1. Supplier files GSTR-1
  2. Recipient sees in GSTR-2A
  3. Auto-populated in GSTR-2B
  4. Claim ITC after verification

Verification Required#

  • Supplier filed return
  • Tax actually paid
  • No mismatch

Auto-Restore Provision#

If supplier doesn't file:

  • ITC auto-reversed in GSTR-3B
  • Re-claimed after supplier files

Steps to Restore#

  1. Wait for supplier to file
  2. File GSTR-3B with reversal
  3. Re-claim ITC in next month

Conclusion#

Provisional credit helps but requires verification.

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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