As per Revenue Department’s analysis in March 2018, 34% of businesses paid Rs. 34,400 Cr less tax between July-December 2017 while filing initial summary return (GSTR-3B). GST officers have started sending scrutiny notices to companies where tax payment did not match the final sales return.
Mismatch between GSTR-2A and the details recorded in purchase register can impact the cash-flow and input tax credit of an organization with the organization’s reputation is at stake.
What is GSTR-3B & GSTR-2A?
GSTR-2A is auto populated in GSTN portal where the user can view/download the list of all of the invoices from the various supplier’s during the month.
GSTR-3B monthly summary return also requires the consolidated values of inward supplies (purchase details).
What is the need of Reconciliation?
Reconciliation under GST is required to correct the mismatches between the details of invoices captured in GSTR-2A and the details recorded in purchase register & ensure that Input Tax Credit (ITC) can be availed.
In the process of reconciliation mismatches arises due to various errors in invoice details auto populated in GSTR-2A & your purchase register, some are as follows:
• Invoice date,
• Invoice/tax value
• Item details
• Place of supply & many others
• Missing invoices in GSTR-2A or purchase register.
The process of reconciliation requires coordination with the suppliers & invoice wise scrutiny to identify the corrections and to rectify it.
Manual reconciliation is a tedious & time consuming task if the invoices are high in numbers, and even it can’t guarantee 100% accuracy. This calls for a robust controls & organized system on the part of taxpayers to fill out the return form correctly without any error.
GSTSTAR is a robust technology solution with robust feature of reconciliation which helps in saving your manual efforts & time which you can devote in growing your business.
How GSTSTAR helps you in reconciliation?
- Get the GSTR-2A data in just one click
2. Upload your multi GSTIN purchase records in one shot
3. Go to Reconciliation tab & choose the businesses/GSTINs for which reconciliation has to be done.
4. Results are shown in summary form & helpful for user to apply filters accordingly to view invoice level wise reconciliation results.
5. User has options to take various actions (Accept, Reject, Modify & Keep on-hold) in bulk as well as invoice level wise.
6. Download all reconciliation related reports in excel for your internal record.