Are you struggling to reconcile GSTR 2B with the books? With recent changes in GST, GTSR 2B is implemented to ensure transparency of credits availed by the dealer. GSTR 2B, along with it brings some complexities. Read the following article where such issues are addressed.

Before we start with the possibilities & possible solutions, please note the following:

1. For period April 2020 to December 2020 – Reconcile everything with GSTR 2A

2. From Jan 2021 Onwards – Reconcile everything with GSTR 2B

GSTR 2B

Auto drafted ITC statement that is generated on every 13th of next month for the period Irrespective of the Invoice Date.

Example – for invoices submitted between 12th Jan 21 till 11th Feb 21 will reflect in you 2B for Feb 21

Now, while reconciling the GSTR 2B with books, following are the situations & possible solutions for them:

Sr. No Situation Possible Solution
1. Invoices found in 2B but not in Books 1. Claim the ITC in the same period;

2. Ensure booking the invoice in books before claiming such GST;

3. For TDS compliance, ensure you pay the liability with interest for previous month, if any

4. Also, collect the physical invoice from the supplier

2 Invoices found in books but not in 2B 1. List out the supplier have applied for

Monthly compliance – Send reminders for uploading invoices in next cycle

Quarterly compliance – Send reminders for using IFF

2. Keep updating the cumulative list of such supplier. On reflection of specified invoice, MARK them as reflected in the sheet & follow-up with the balance supplier

3 Invoices reported by supplier already claimed in previous months Don’t include such invoices while claiming credit as you have already claimed ITC on same
4 Mismatch in Invoices Share the report with the respective supplier

For more information regarding reconciliation of 2B, kindly glance to the link : GSTR 2B Reconciliation Excel Template

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(This article represents the views of the authors only and does not intent to give any kind of legal opinion on any matter)

Authors:

CA Shreyans Dedhia |Partner   | +91-9870925375 | Email: [email protected]

CA Prashant Taparia | Partner   | +91-9029507606 | Email: [email protected]

Kiwa Shah |Associate Consultant   | +91-9833941248| Email: [email protected]

Author Bio

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3 Comments

  1. Saroj Kumar maharana says:

    All the accounting entries are made through tally software. I need a software for incometax purpose & GST Purpose purely which will enable for reconciliation of ITC

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