Matching & Reconciliation under GST

Following Mismatches can be noticed by taking up following Matching and Reconciliation exercises:

-Differences between the amount of credit shown in GSTR- 3B and the GSTR 2A or/and

-Discrepancies between GSTR-3B and GSTR-1 or/and

-Differences in the provisional credit claimed and actual credit that is claimable. This situation arises usually during transition stages.

Any differences noticed between these returns will lead to scrutiny notices being issued to the taxpayers.

There can be several causes of mismatches. Popular ones are:

  1. The vendor has declared liability but credit is not availed in GST returns: Such credits should be availed at the earlier of the due date of September returns or Annual returns.
  2. The vendor has not declared liability on supplies made but businesses have availed credit on such procurements in the GST returns: Businesses should follow up with the vendor to ensure that the liability is declared. Else, risks of such credits being disallowed may arise.
  3. The mismatch between liability declared by the vendor and credit availed: The reasons for differences should be identified and reconciled appropriately at the earlier of, filing the return under section 39 for the month of September* following the end of the financial year to which a particular invoice pertains, or the furnishing of the relevant annual return.
  4. Mistakes in the details furnished: There can be a mismatch in the fields such as GSTIN of the supplier/recipient, number and date of the invoice/debit note, etc. Make amendments in the GST returns of the month following the relevant month when mistakes were committed.

Reconciliation under GST although seems to be a simple process due to automation but still consumes a lot of time and resources, as taxpayers are required to continuously communicate with vendors for making amendments in the returns filed by them or even to track. It would not be tasking for businesses having a handful of transactions to monitor. However, in case you have thousands of invoices in a month, then even a single-digit percentile will be a significant volume. Therefore, one must reconcile the returns data on regular basis under GST.

*due dates are subject to change as per notifications issued by the CBIC

To simplify such reconciliation for FY 2019-20 onwards, I have developed GSTR – 2A Reconciliation with Books in Excel Utility which will reduce your work by 80%

Before using this utility go through the Precautions note as available with Utility. And let me know if any further improvement can be made.

Use the utility wisely don’t misuse it.

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3 Comments

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    You can’t paste here because the Copy area and paste area aren’t the same size.

    Select just one cell in the paste area or an area that’s the same size, and try pasting again.

    And shown button “End” and “Help” vision.

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