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 rate-wise tax break-up details of inward supplies —instead, only the total tax amount will be available. As a result, existing reconciliation methods, including auto-reconciliation, 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 GSTR-2B of October 2024 and subsequent months, which will be made available from 14th November, will no longer provide detailed tax information for newer invoices. Most of the auto-reconciliation systems are designed to consume the rate-wise tax information of inward supplies. With these new changes, the reconciliation schema will have to be updated to accommodate the revised structure. As a result, GSTR-2B reconciliation from 14th November will remain impacted.
As Tally's commitment to ensure businesses stay up to date with the latest GST changes, the latest release of TallyPrime now supports seamless auto-reconciliation as per the new GSTR-2B API version 4.
TallyPrime now supports new GSTR-2B API changes
The latest release of TallyPrime is now enhanced to support the changes as per the new GSTR-2B API, hence, all reconciliation starting from November will stay unaffected, ensuring seamless reconciliation of GSTR-2B, just like before.
From November onwards, TallyPrime will reconcile GSTR-2B using the new API schema and for the September and previous months, it'll continue to use the older scheme. Upgrade to the latest release of TallyPrime and stay compliant!
