GST 2A Reconciliation

GSTR Reconciliation in India

Reconcile your GSTR 2A/2B and Purchase Register with the guidance from experts throughout the process. We provide convenient and simplified filing services through 100% online process.

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Overview

Understanding the requirement of GSTR Reconciliation

For a regular GST registration, the business has to report the Purchases i.e., Input Tax Credit (ITC). If the businesses don’t claim eligible ITC in their GST returns, then it will have direct impact on their profits and also on their Working Capital. A business has to take care of their GSTR 2A/2B reconciliation with their Purchases in the timely manner in order to claim the maximum eligible ITC. GSTR 2A/2B reconciliation is the most important process every business has to conduct on monthly basis.

Problems

Problems in GSTR 2A Reconciliation:

Invoices accounted in Purchase Register but not uploaded in GSTR 2A

When we purchase the goods/services from a vendor, then he has to upload that invoice in his GSTR 1 to reflect it in the GSTR 2A. But not all the vendors will file their returns in time. So, we need to identify the invoices that are not uploaded in the GSTR 2A and have to follow up with the vendors. We should identify the vendors who are not uploading the invoices at all and have to stop purchasing from that vendor. Otherwise, our ITC will be blocked and we cannot claim it in the monthly return and we have to pay that amount from our funds which will block the working capital and if that vendor fails to upload the invoices, then it will result in losing the ITC from our profits. So, it is very important to conduct the reconciliation and identify the invoices which are available in the Purchase Register and are not uploaded in the GSTR 2A.

Invoices reflecting in GSTR 2A but not accounted in Purchase Register

It happens that we purchase the goods or services from the vendor but fails to submit the purchase invoice to the accounting department. When we do the reconciliation of GSTR 2A with the Purchase Register, then these types of invoices will be identified. These are required to reduce our Tax Liability and also do not burden the working capital. If we do not do the GSTR 2A reconciliation, then these types of invoices will never be able to identify by the business which will impact the overall profit of the business also. This will prove the efficiency of the accounting department also ensures some flags raised when the business purchase goods or services without receiving the Purchase Invoice.