GST INPUT TAX
CREDIT RECONCILIATION
GSTR-2A
Under Goods and Services Tax (GST), reconciliation means recording every transaction that took place during a period while also ensuring that the data filed by the supplier matches with those of the recipients. This enables that no sales or purchases are missing or wrongly reported in the GST returns.
In order to claim the input tax credit (ITC), the taxpayers have to reconcile their data with that of the vendors on a regular basis.
What is GST Reconciliation?
The procedure of reconciliation and matching of GST returns is not new for taxpayers as it was prevalent in the previous VAT and excise regime. Before, the matching of data was done between the books of accounts and tax returns which was an easy task. In case of any discrepancy, the authorities would communicate the same to the taxpayer and accordingly further audits and scrutiny would be carried out.
How to do GST Reconciliation?
You may refer the following steps while reconciling your data:
- Firstly, you should reconcile within the GSTIN thoroughly.
- After which you should reconcile the data furnished to the PAN India level.
- Afterwards, you should consider doing supplier-wise GST Reconciliation; this will ensure that you avail any unclaimed ITC.
NOTE: In order to find out your ITC you have to compare your GSTR 2A with inward supplies.
- You can also reconcile the data in the E-way Bill and invoices. This will help you to raise a mismatch in the taxable amount to the supplier in case of any discrepancy.
Mismatches under GST Reconciliation
Here are the important inconsistencies you may face during GST reconciliation.
Inconsistencies in invoice details
Many errors can occur in the data set between you and the supplier. Incorrect invoice number, invoice date and / or invoice value are common mismatch invoice details.
Incompatibility in GST
This is the most common mismatch when it comes to GST reconciliation. Sometimes due to human error, the supplier punches the wrong GSTN. This may be matched when ITC claims.
