Managing your GST filings and claiming Input Tax Credit (ITC) has always been straightforward with GSTR2B. The rate-wise tax break-up details of your inward supplies in GSTR-2B made it easy to reconcile your tax credits. The detailed breakdown was essential for automating the GSTR-2B reconciliation. This was achieved through the current version (API Version 3) of the GSTR-2B download process.
Recently, GSTN has upgraded the API to the newer version which impacts the way ITC reconciliation process works.
The change – GSTR2B API Version 4
Effective 1st October 2024, GSTN has introduced the newer version of GSTR-2B API. Starting 14th November, GSTR-2B downloads will use the new version to fetch the GSTR-2B details. The key change is that the GSTR-2B downloads from 14th November will no longer include the transaction-wise tax details of inward supplies, making difficult for invoice-wise reconciliation. This implies for GSTR-2B statements downloaded physically from the portal as well. Thus, the current process of reconciliation using GSTR2B, both auto-reconcile and other ways practiced by the business, will be impacted.
From November 14, 2024, GSTN will stop supporting the current version (3.0) of the GSTR2B API. However, businesses can download GSTR2B of previous months up to September 2024, with no changes to the current process.
The Impact - What does this change mean for you?
The details from GSTR2-B were crucial for reconcile and manage your tax credits. With these changes from GSTN, the way you handle this process will evolve starting October 2024. Here's what you need to know:
Up to September 2024
The newer version supports GSTR-2B download of past month up to September 2024 and reconcile invoices as usual, with no change in your process.
From October 2024 onwards
The GSTR2B of October 2024 and subsequent months, which will be made available from 14th November, will no longer provide detailed tax information for newer invoices. Instead, you’ll need to rely on GSTR2A for reconciling your invoices and managing input tax credit (ITC).
The current solution – How to manage in TallyPrime
Up to September 2024 GSTR-2B
TallyPrime will continue to reconcile GSTR-2B and calculate your ITC at risk based on GSTR2B, using the same reliable method you’re already familiar with. No changes here, so you can stay on top of your ITC just as you do today.
From October 2024 onwards
The GSTR2B of October 2024 and subsequent months, which will be made available starting 14th November, will no longer provide detailed tax information for newer invoices. Instead, you’ll need to rely on GSTR2A for reconciling your invoices and managing Input Tax Credit (ITC). The transactions will be marked as “Unreconciled,” in GSTR2B and you can manually update status using the details from GSTR2A to ensure everything matches.
The way forward
At Tally, we’re committed to adapting to every statutory change to make compliance easy for you. We are actively working on enhancements to TallyPrime, ensuring a smooth transition to this new change. In our upcoming release, we will support the new GSTR-2B API Version 4 and provide solutions to streamline your workflow.
Supporting the new API Version
Rest assured, we're fully prepared to support the new API version in our upcoming release. You'll still be able to download GSTR-2B for past months up to September 2024, ensuring seamless reconciliation of GSTR-2B, just like before.
Key changes expected
In our upcoming TallyPrime release, from October 2024 onwards, TallyPrime will switch to using GSTR2A for calculating your ITC at risk. Till September 2024, the ITC at risk will be derived based on GSTR2B, using the same reliable method you’re already familiar with.
We’re here for you
As always, our team is ready to assist you in navigating these changes. Whether you have questions or need support, don't hesitate to reach out — we’re just a call away!
