Under GST provision any dealer can take input of ITC if same has been shown in their 2A. If taken input not shown in their 2A than they have to reverse the ITC and pay tax with interest.
Any dealer can take ITC of previous year prior to filling the Annual Return. Normally the Date declared by Government is Sept of next financial Year.
so prior to filling the annual return, It is important to know that there ITC is shown in 2A is equal to their Books. Means no difference between books and 2A.
So It is compulsory for every dealer to reconcile there ITC with 2A on end of every Quarter of F.Y.
Now there are some questions raised in our mind.
How can we reconcile our Books vs 2A?
How can we get rectify the error of ITC?
here we try to solve these type of question which normally raised at the time of GST Reconciliation.
Step 1 – First make a details in excel from your books of Accounts, with below details like . GST No. , Bill No , Date , Party Name , Taxable Value, IGST, CGST, SGST, Month , Remarks
Step 2 – Match the Total of this excel details with your books of accounts that IGST , CGST and SGST total matched with respective Tax Ledger.
Step 3 – Login to your GST site . Go to Respective month Return and Download 2A.
Step 4 – Remove the Total line and not submitted details from 2A by formatting the sheet.
Step 5 – Match the 2A total with GST Portal Summary sheet that respective month total is equal to summary sheet.
Step 6 – Take all details in single sheet. Like As per Books and As per 2 A . Remember Both Format should be same. Like GST No, Bill No, Date, Vendor Name , Taxable Value, IGST, CGST, SGST, Remarks (As per Books, or As per 2A)
Step 7 – Select the Sheet and take Pivot.
Step 8 – Get GST No, Bill No in Row, As per Books and As per 2A in Column Format.
Step 9 – Go each GST No. , make equal their Bill No , Draw differences in Las column of Taxes.
Step 10 – When You complete this task each GSTN wise difference sheet will be shown in your Pivot . You can call to respective vendor and get rectified your ITC if not paid by him.
Step 11 – This Pivot Sheet is your Primary Sheet for whole F.Y. , only you have to add new raw and select Pivot area, rest details automatically shown in Pivot Sheet.