Compliance
Understanding GST ITC Reversal Rules (Rules 37, 42 & 43) in Purchase Matching
✍️ Published by CA Rajesh Kumar•⏱️ 7 min read•📅 2026-08-17
# Understanding GST ITC Reversal Rules (Rules 37, 42 & 43)
Not all invoices in GSTR-2B can be claimed as final tax credit. Specific CGST Rules mandate reversing credit in GSTR-3B Table 4(B):
- **Rule 37:** Reversal of ITC if supplier payment is not made within 180 days from invoice date.
- **Rule 42:** Reversal of common ITC used for exempt supplies or personal use.
- **Rule 43:** Reversal of credit on capital goods used for non-business purposes.
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