GST Compliance – Tax Liability & ITC Comparison Report

Tax Liability Declared vs. ITC Claimed – Comparison Report

Edition: September 2025
Disclaimer: This manual is prepared for compliance facilitation. It does not substitute notifications, circulars, or statutory provisions. Users should cross-check with law and GSTN portal updates.

✍️ Preface

GST provides a digital tool for taxpayers to reconcile tax liability declared in GSTR-1/GSTR-3B with ITC claimed in GSTR-3B and accrued in GSTR-2A/2B. The Tax Liability & ITC Comparison Report available on the GST Portal is an analytical statement that highlights mismatches and provides corrective guidance.

This manual consolidates the law, portal process, FAQs with statutory references, and a compliance checklist for practitioners and trade.

📑 Table of Contents

1. The Law Governing Comparison

2. Purpose of Comparison Report

3. System Access Requirements

4. Step-by-Step Filing & Access Process (How Do I)

5. FAQs (with Basis)

6. Compliance Checklist (Fillable Format)

⚖️ 1. The Law Governing Comparison

• Section 37, 38, 39, CGST Act, 2017 – Furnishing of outward/inward supplies and returns.

• Rule 60, 61, 61A, CGST Rules, 2017 – Governs filing of GSTR-1, GSTR-2B, GSTR-3B.

• Rule 36 & 42/43 – ITC conditions and reversals.

• Purpose: Ensure ITC claims are matched with supplier declarations and liability is properly discharged.

📝 2. Purpose of Comparison Report

• Enables reconciliation of liability declared in GSTR-1 vs. GSTR-3B.

• Matches ITC claimed in GSTR-3B with ITC accrued in GSTR-2A/2B.

• Highlights mismatches in red for corrective action.

• Provides downloadable CSV/Excel reports for record-keeping.

Reports available:

1. Tax liability & ITC statement (summary)

2. Liability other than export/reverse charge

3. Liability due to reverse charge

4. Liability due to export & SEZ supplies

5. ITC claimed & due (other than imports)

6. ITC claimed & due (imports)

💻 3. System Access Requirements

• GST Portal Login ID & Password.

• Browser: Latest Chrome/Edge/Firefox.

• Internet connection for real-time report generation.

• Reports generated in near real-time based on GSTR-1, 3B filed, and GSTR-2B generation.

🛠️ 4. How Do I – Stepwise Filing & Access Process

Step 1: Login

• Go to www.gst.gov.in → Login → Services > Returns > Tax Liabilities & ITC Comparison.

Step 2: Select Period

• Choose FY → click Search.

Step 3: View Summary

• Portal displays summary with links to all six reports.

Step 4: Download Reports

• Click Download CSV under each report for individual data.

• Use Download Comparison Report (Excel) for consolidated reports.

Step 5: Interpret Results

• Mismatched liability/ITC → highlighted in red.

• If shortfall in liability → payment via Form DRC-03 can be initiated directly from report.

❓ 5. FAQs (with Basis)

Q1. What is the Comparison Report?
It compares liability declared in GSTR-1/3B with ITC claimed in 3B vs. accrued in 2A/2B. (FAQs Q1)

Q2. Where is it available?
Portal → Services > Returns > Tax Liabilities & ITC Comparison. (Manual)

Q3. Which returns are used?
GSTR-1, GSTR-3B, and GSTR-2A (till June 2020), GSTR-2B (from July 2020). (Manual)

Q4. Why are some values red?
When GSTR-1 liability > 3B liability or ITC claimed > ITC accrued. (FAQ 10, 21, 27, 32)

Q5. How frequently is report generated?
Near real-time after filing of GSTR-1, GSTR-3B, and generation of GSTR-2B. (FAQ 5)

Q6. Which liabilities are covered?

1. Outward supplies (other than export/RC).

2. Reverse charge.

3. Export & SEZ supplies. (Manual)

Q7. Which ITC is covered?

1. ITC on other inward supplies.

2. ITC on imports. (Manual, FAQs)

Q8. Can I file corrections through the report?
No. Report is advisory; corrections must be done in subsequent returns.

Q9. Can payments be made directly?
Yes, via DRC-03 option from report page. (Manual)

Q10. Can Nil report be generated?
Yes, report generates even if no mismatches.

✅ 6. Compliance Checklist (Fillable Format)