- Need for matching of GSTR 2A with GSTR 3B
- Invoice mismatch cases between GSTR 2A and GSTR 3B
- How to reconcile GSTR 3B and GSTR 2A?
- Why GSTR 2A reconciliation becomes important?
Need for matching of GSTR 2A with GSTR 3B
The return in Form GSTR 2A is generated by the system on the basis of information received GSTR 1 (sales details). When the supplier of the assessee files GSTR 1 in any particular month, its details are captured by GSTR 2A thus providing the details of purchases of the assessee concerned.
And since ITC claimed in GSTR 3B should ideally match with ITC available on all the purchases made by an assessee, a mismatch can be detected by comparing the details in these two forms which necessitate a reconciliation process between these two returns to be carried out.
Invoice mismatch cases between GSTR 2A and GSTR 3B
Invoice mismatch between GSTR 2A and GSTR 3B may arise due to one of the following reasons understated:
|
Case 1 |
The supplier has not uploaded invoices for which the recipient have already claimed input tax credit by submitting the tax summary in his GSTR 3B return. |
|
Case 2 |
On account of the discrepancy of claim w.r.t., declaration by the supplier in his valid return. |
|
Case 3 |
On account of duplication of claim of ITC by recipient. |
How to reconcile GSTR 3B and GSTR 2A?
|
Mismatch |
Who has to rectify |
What action needs to be taken |
|
On supplier failing to upload the invoice or on account of discrepancy with respect to the declaration by the supplier in his valid return GSTR 1 |
The supplier has to rectify in GSTR 1 return |
Ideally, the receipt should follow-up with the supplier and ask him to upload
|
|
On account of duplication of claim of ITC by the recipient |
The recipient has to take action |
This needs to be rectified by the recipient in his subsequent return |
Why GSTR 2A reconciliation becomes important?
- What to reconcile?
The reconciliation process primarily involves matching the data uploaded by the suppliers with those of the recipient’s purchase data. This includes comparing the auto-populated GSTR 2A from the supplier’s data and the purchase data recorded by the receiver of the supplies.
- Why GSTR 2A reconciliation?
It is very important to reconcile GST returns data because under the new GST returns, the taxpayers will only be able to claim ITC if the particular invoice is present in the GSTR 2A or supplier’s data. This situation forces the businesses to reconcile and claim ITC correctly.
This matching concept also helps in verifying whether all the transactions which took place in a particular period have been recorded and posted in summary return GSTR 3B with correct values.
The latest release of TallyPrime
The latest release of TallyPrime introduces a connected GST experience, enabling businesses to handle a wide range of GST activities directly within TallyPrime. From uploading invoices to filing returns and reconciling data, this new release streamlines the entire process. Here's a list of features in the latest release of TallyPrime:
- One-click GST reconciliation: Automatically download and reconcile GSTR-2A/2B, GSTR-1, and GSTR-3B data for seamless reconciliation.
- Direct upload of GST invoices and Returns: Upload GST invoices and returns effortlessly via connected services.
- Direct filing and signing of GSTR-1: File and sign the GSTR-1 return directly from TallyPrime, simplifying compliance.
- Enhanced outstanding reports: Gain insights on ITC at-risk with improved outstanding reports.
- Automated ledger creation : Fetch, validate, and create ledgers using GSTN, ensuring accuracy and compliance.
