Recovering 18 months of leaked input credit for a D2C seller

The challenge

A marketplace-led D2C brand had never reconciled GSTR-2B against purchases. Vendor non-filing and wrong-GSTIN bookings had quietly locked up significant input credit over 18 months, straining working capital during their growth phase.

Our solution

We rebuilt the purchase register vendor-wise, ran a full 2B matching across the period, segregated recoverable credit (vendor follow-ups, amendments) from lost credit, and instituted a monthly reconciliation SOP with vendor scorecards before each GSTR-3B filing.

The outcome

Recoverable credits were claimed within the statutory window, vendor compliance became a payment-release condition, and the brand now closes its GST cycle by the 18th of every month with zero unmatched high-value invoices.

Results

• Substantial ITC recovered within statutory timelines
• Monthly reconciliation closed by the 18th
• Vendor default rate down sharply in two quarters
• Zero notices since SOP implementation