GSTR-2A reconciliation under GST
A guide to GSTR-2A reconciliation
What is GSTR 2A?
The GSTR 2A is an auto-generated monthly statement of goods/services purchased from sellers GSTR-1 in a given month. Similarly, it auto-populates details about inward supplies and input tax credits (ITCs) using GSTR-5 and GSTR-6.
Basically, it allows you to view all invoices uploaded by your suppliers in a read-only document. You will receive a dynamic report when the suppliers upload invoices related to goods or services you purchased. It’s an important statement that defines how much ITC you’ll be able to claim in your monthly or quarterly GSTR-3B return. As a buyer, you can only claim ITC if it appears in the GSTR-2A/2B.
In other words, GSTR-2B is an automatically created statement like GSTR-2A; the only difference is that GSTR-2B is generated on a monthly basis and does not change.
What is GSTR 2A reconciliation ?
GSTR-2A reconciliation is the process of matching invoices on GSTR-2A with invoices in the company’s records. Business owners can use the GSTR-2A reconciliation process to find out whether any discrepancies exist between invoices.
Generally, ITC reconciliation takes place monthly or fortnightly, depending on the process.
Why is GSTR – 2A reconciliation important?
It is very important to reconcile GST returns data because of the following :
- In the new GST return, taxpayers will only be able to claim ITC if an invoice is included in GSTR-2A or the supplier’s records. Businesses must submit accurate ITC claims in order to reconcile their accounts.
- On their GST returns, consumers occasionally fail to claim credit when merchants submit GST obligations. Therefore, the data has to be continuously reconciled in order to maintain the ITC claim. No invoices will charge an ITC loss thanks to this reconciliation process.
- It is important for taxpayers to consolidate and reconcile their values in order to avoid any duplication.By doing this, the declaration will be accurate, as well as maximising the input tax credit.
Steps for GSTR-2A reconciliation
The main steps in the GSTR 2A reconciliation process and they are:
First Step: Downloading GSTR 2A
- Login into GST portal
- Click “Return Dashboard”
- Select the return period
- In “returns”, click “Auto Drafted GSTR 2A” click on Downloads
- You will get option to download the file as JSON or in Excel
- You will receive the file in 20 minutes after selecting the relevant type of download
- After 20 mins, click on “Click here to download the JSON/Excel File”
- Download will occur to the system’s required path
Note: Details of inward supplies in GSTR-2A, auto-drafted based on GSTR-1/IFF/5/6/7/8, can be downloaded either as a JSON file to view in an offline tool, or as an Excel file.
After uploading your GSTR-2A to the offline tool, it will show the invoice details.
- Fully Matched
- Partially Matched: When a partial match between invoices available in the books with invoices in the GST portal happens.
- Available only in Books: If your supplier did not upload some invoices.
- Available only in Portal: When the supplier uploads the transaction but you do not record it in your books..
Invoice No. Mismatch: Will display the invoice details if only the invoice number does not match the downloaded invoice details.
GSTIN Mismatch: Will display the invoice details if the invoice GSTIN does not match the downloaded invoice details.
Final step: Take action on mismatched invoices
In this case, it is worthwhile to check with the suppliers or correct/record the respective purchase invoices in the books after checking with the suppliers.
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