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GST Reconciliation

Get GST Reconciliation done by experts and thus avoid errors and issues in taking credit.

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    GST Reconciliation

    Under GST Act, Reconciliation means matching up of the transactions as entered from the supplier’s end with that as entered by the receiver’s end. GST Reconciliation is a very important process when it comes to claiming Input Tax credit so that we do not end up claiming more than that available to us.

    Process of GST Reconciliation:

    For starting with GST Reconciliation, firstly we should start reconciling at the GSTIN level and then move to the PAN level. Instead of doing it at the end of the year, it should rather be done at regular intervals.

    We need to do the following reconciliations:
    • Reconcile transitional ITC
    • Claim ITC belonging to earlier financial years, if not claimed earlier or reverse the ineligible ITC, if not identified and done earlier.
    • Match Table of exports at 6A of GSTR-1 vis-a-vis Corresponding declaration in GSTR-3B
    • Matching Table of exports at 6A of GSTR-1 vis-a-vis details of shipping bills submitted on ICEGATE
    • Comparison between Annual Income Tax Return with Annual GST return
    • Comparing Purchase register vis-a-vis GSTR-2A for the entire year
    • Compare GSTR-1 vis-a-vis GSTR-3B
    • To Compare the ITC in GSTR-3B vis-a-vis GSTR 2A for the entire year

    Common mismatches encountered during Reconciliation:

    • Mismatch in Invoice details
    • Mismatch in GSTIN

    Major issues faced during GST Reconciliation:

    • The invoice number that the purchaser has recorded does not match with seller’s invoice received in 2A. Both follow a different convention.
    • The purchaser may work in multiple states, and the seller has raised invoice with another GSTIN/HQ GSTIN instead of the actual purchaser GSTIN. In this case it might not reflect completely at a GSTIN level.
    • The invoice date by purchaser doesn’t match with seller. Difference because of date of recording the invoices is different at both places. Mostly purchaser at fault here as they should’ve entered the same date as in Sales invoice.
    • The purchaser and supplier have recorded invoices in different return periods.
    • Invoice value from Supplier and Purchaser differs by a minor value because both parties have different conventions of rounding off.
    • The invoice value differs at supplier and purchaser’s end in case a CN/DN is issued and it fails to match in a recon row.
    • When invoice number and date do not match while only the invoice value matches between two parties.
    • There are multiple invoices between a purchaser and supplier where every invoice is of same value at different dates and one of the parties has recorded invoices higher than the other. This happens in case of regular fixed supply business.