How to Generate ITC in GSTR-2B from October 2025

How to Generate ITC in GSTR-2B from October 2025?

Beginning October 2025, a major change is coming to the way businesses claim Input Tax Credit (ITC). Until now, your GSTR-2B was auto-generated every month or quarter, and ITC was automatically reflected in your returns. But with the new GST 2.0 reforms and amendments to Section 38 of the CGST Act, this convenience will no longer exist.

From October 2025 onwards, you must take explicit action on supplier invoices through the new Invoice Management System (IMS) before GSTR-2B can be generated. This means ITC will no longer be “auto-generated”; instead, it will depend on your confirmation of invoices.

So, how do you generate GSTR-2B and claim ITC under this new system? Let’s break it down step by step.

Step-by-step guide to generating ITC in GSTR-2B

Step 1: Log in to the GST portal and access IMS

Go to GST portal.
Navigate to: Services > Returns > Invoice Management System (IMS).

This is where you’ll find all inward supply documents uploaded by your suppliers.

Step 2: Review your inward supplies

On the IMS dashboard, you’ll see all B2B invoices, debit notes, and credit notes uploaded by suppliers. For each document, you must take action:

Accept – For invoices that are correct and eligible for ITC. (These will be included in your GSTR-2B.)
Reject – For invoices that don’t belong to you or have errors. (These will be excluded from your GSTR-2B.)
Pending – For invoices that need clarification from suppliers. (These won’t be part of GSTR-2B until acted upon.)

Note: If you do not act, the system may treat invoices as “deemed accepted” and include them automatically.

Step 3: Generate GSTR-2B for the October 2025 onwards

Once you’ve acted on all invoices, the system will generate your GSTR-2B:

For monthly filers → Available on or after 14th November 2025.
For QRMP filers (quarterly) → Available on or after 14th January 2026 (for Oct–Dec quarter).

Step 4: Use GSTR-2B to file GSTR-3B

Download your GSTR-2B and reconcile it with your purchase records.

Based on the actions you take in IMS until the 13th of the month, the system generates your GSTR-2B.
If you take any actions after the 14th but before filing GSTR-3B, you must click “Recompute” in IMS to update your GSTR-2B.
Once GSTR-2B is generated (either initially or after recompute), the eligible ITC flows into GSTR-3B.
You can then review and reconcile your ITC in GSTR-3B before filing.

Key point: The ITC now depends on user actions in IMS, not on an auto-generated statement, but once GSTR-2B is generated, it continues to feed into GSTR-3B for filing.

Key Changes and Considerations

No auto-population of ITC
- Earlier: ITC from GSTR-2B flowed directly into GSTR-3B.
- Now: Take action on supplier invoices in IMS up to the 13th of the month to generate your GSTR-2B. Any actions after this date but before filing require clicking “Recompute” to update GSTR-2B. Once generated, the eligible ITC from GSTR-2B flows into GSTR-3B, allowing you to review, reconcile, and file accurately.
Mandatory invoice action
- Every invoice requires “Accept / Reject / Pend.”
- Inaction = system may assume acceptance.
Higher compliance burden
- Greater responsibility on taxpayers to review inward supply data carefully.
- Any mismatch could lead to ITC reversal + interest.
Recompute option
- If a supplier amends GSTR-1 after your GSTR-2B is generated, you can use the “Recompute” button in IMS to regenerate a fresh GSTR-2B.
Consequences of inaction
- Failure to act could mean ineligible ITC being included.
- Wrong claims may result in tax notices and reversal with penalties.

IMS with TallyPrime: Smarter ITC, seamless compliance

TallyPrime’s Invoice Management System (IMS) is a connected GST solution that ensures you claim the right ITC at the right time. With real-time invoice visibility, instant reconciliation, and action-based controls, it eliminates last-minute mismatches and reduces compliance stress.

Key Benefits of using IMS in TallyPrime

Real-time visibility: See supplier invoices as soon as they’re uploaded—no waiting till GSTR-2B.
Action-based control: Accept, Reject, or keep invoices Pending for clarity and accuracy.
Auto-reconciliation: Match supplier invoices with purchase records in one click.
Bulk actions: Handle hundreds of invoices at scale—beyond the GST portal’s 500 limit.
Complete tracking: Single-view summary for pending, accepted, and rejected invoices.
Deemed acceptance: Flexibility where explicit action isn’t needed.
Predictable ITC & cash flow: Timely actions mean fewer reversals, smoother audits, and reliable compliance.

In short, using IMS in TallyPrime simplifies GST return filing, keeps your ITC accurate, and gives you unmatched control over compliance—all within your accounting system.