In this post, we will discuss on the GSTR-2A reconciliation under GST.
We will cover the following topics in this post:
What needs to be reconciled?
GSTR 2A is a self-generated statement. Here you can view all incoming supplies made by the supplier in GSTR 1 is available to all recipients. The details will be available only after the submission of returns in the GST portal.
GST reconciliation is a data matching process. To elaborate, the supplier’s uploaded data is matched with the recipient’s purchase data. Therefore, it will help to file accurate returns and to compile GSTR 9 and GSTR 9C.
It includes the comparison between GSTR-2A which is auto-populated from the supplier’s data and the purchase data of the receiver of the supplies. GST reconciliation also ensures that all the transactions in a specific period are recorded.
Importance of reconciling under GST
It is very important to reconcile GST returns data because of the following reasons:
- As per new GST returns, the taxpayers can only claim ITC if the particular invoice is present in the GSTR-2A / supplier’s data. Therefore, all businesses need to reconcile and claim ITC correctly.
- If the vendor declared his GST liability, and the purchaser has not availed the credits in GST returns. Then the credits would be lost on those invoices. So, it is best to do data reconciliation on a regular basis so that you won’t lose the ITC claim. This reconciliation process will ensure no ITC loss on any invoices.
- To avoid duplication, taxpayers must consolidate and reconcile the values. This will ensure the correct declaration and maximize the credit of input taxes.
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 “Download link” (Note: You’ll find the new option to Download as Excel)
- Click on “Generate Excel File” and wait for 20 minutes
- After 20 minutes, click “Generate”
- Click on “Click Here to Download Excel”
After uploading your GSTR-2A, 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: If the transaction is not recorded in your books, but the supplier has uploaded it.
Final step: Take action on mismatched invoices
The registered taxpayer can take action on the invoices which are mismatched, available only in books, and available only in the portal. This can be done after checking with the suppliers or correcting/recording respective purchase invoices in the books.
With that, we have come to the end of this post. Share your queries with us in the comment section below.