Claim upto 99% input tax credit with AI-ML based Advanced reconciliation

GST reconciliation is the process of matching the data reported in the GST returns or GST statements with the data in the taxpayer’s books of accounts.

GST reconciliation is necessary for business. The main objectives are:
to identify and resolve errors or discrepancies, ensure that the data reported in the GST returns is accurate and complete and matches with the data of taxpayer’s books of accounts, and the tax paid and ITC availed are correct.

There are various types of GST reconciliation:

*GSTR-3B with books of accounts- to verify the accuracy of tax paid and ITC availed,
*GSTR-1 with books of accounts- to verify sales records,
*GSTR-2B with books of accounts- to verify purchase/expense records,
*GSTR-3B with GSTR-1 to ensure the sales recorded in GSTR-1 is paid in GSTR-3B
GSTR-1 Vs GSTR-3B Vs GSTR-9 to ensure that supplies are correctly recorded and tax has been correctly paid during the year and the same is reported in GSTR-9
GST-1 Vs GSTR-3B Vs Audited Financial Statement to reconcile the turnover of financial statement with GST monthly returns. This is done in specific format i.e., Form GSTR-9C

The key steps involved in Advance reconciliation are:

• Gathering the data reported in GST returns and of taxpayer’s accounting records
• Comparing two sets of data
• Identifying errors or discrepancies
• Resolving the errors or discrepancies
• Documenting the reconciliation process

The documents and records required for GST reconciliation include:

• GST returns and other relevant statements (GSTR-1, GSTR-3B, GSTR-2B)
• Accounting records. (Sales register, Purchase register/expense register)
• Invoices, Bills of supply, E-invoice, E-way Bill, Delivery challans.

There is no specific time limit for GST reconciliation.

However, it is recommended that reconciliation be performed on a regular basis, such as monthly or quarterly before filing of GSTR-3B to ensure that the information reported is correct and tax paid or ITC claimed is accurate.

Yes, GST reconciliation can be done electronically. There are a number of software and tools available to assist in GST reconciliation.

Yes, GST reconciliation can help in identifying errors or discrepancies in GST returns. By comparing the data reported in the GST returns with the data in the taxpayer’s accounting records, it is possible to identify any errors or discrepancies.

Advance reconciliation is important for claiming ITC. If there are any errors or discrepancies in the GST returns, it may affect the taxpayer’s ability to claim ITC.

Yes, GST reconciliation helps in the filing of GSTR-9. It ensures that the information in GSTR-9 (which is reported on the basis of GSTR-1 and GSTR-3B filed throughout the year) is correct and that any error or mismatch that remained in the filing of GSTR-1 and GSTR-3B can be rectified in GSTR-9.

GSTR-9C is the official reconciliation statement that needs to be reported to the department along with GSTR-9. It compares information on books of accounts and values filed in annual returns. Reasons for any mismatch and error can be reported in GSTR-9C.

ITC is the most important component of your GST returns as it holds greater relevance when compared to any other component of the GST returns. Taxpayers will be able to claim ITC only if the invoice is present as a part of their GSTR-2B. Due to this, taxpayers will need to do a reconciliation wherever the ITC as per their purchase register and GSTR-2B data is not matching.

A technological solution which can solve for all of the major pain points. This will add a lot of value to the business owner. Certain features that one must find in a powerful reconciliation tool or system for matching and reconciling GST returns data are:

• Software can handle a massive amount of data
• Software can provide deep reporting and insights
• Software must be extremely intelligent to handle any case of missing/wrong information. It can be wrong dates, wrong invoice numbers, missing items, wrong tax rate, wrong POS etc.

The consequences of not performing GST reconciliation accurately can include:

• Penalties and interest charges
• Incorrect payment of tax
• Ineligible ITC availment
• Audits by the tax authorities

No, there are no guidelines and instructions for GST reconciliation.

The common challenges faced during GST reconciliation include:

• The lack of required data
• The complexity of the GST laws and regulations
• The lack of clarity in the GST laws and regulations
• The lack of proper documentation
• The lack of training on GST reconciliation

Advance GST reconciliation is the process of matching the data to be reported in returns with data from the taxpayer’s accounting records. The reconciled data can be filed in GST returns to be reported to government authorities.

Here are some of the best practices for Advance reconciliation:

• Use a standardized format for reconciliation
• Document the reconciliation process
• Review the reconciliation results regularly
• Resolve any errors or discrepancies promptly

• Matched – Invoice is totally matched with GSTR-2A/2B.
• Matched by tolerance – Difference in the tax amount is within the tolerance limit defined in the settings. All other fields are totally matched.
• Near Match – Mismatch in the document number and other fields.
• Mismatch – Tax amount, GSTIN etc. is not matched but document number matched.
• PR Only – Invoice is not found in GSTR-2A/2B.
• GST Only – Invoice is not found in Purchase Data

• Counterparty GSTR-1 Return period (Month of GSTR-1 in which invoice uploaded by counterparty)
• Counterparty GSTR-1 Filing Date
• GSTR-3B filing status (Yes or No)
• GSTR-3B Filing Date
• Counterparty filing preference (Monthly or quarterly)

There are extra columns provided in the import format, so user can add his extra details while importing the purchase data on portal and those details are also reflected in the reconciliation report extracted from advance reconciliation module.

If any invoice has been amended by the counterparty, then reconciliation will be done with the amended invoice and the original invoice has been discarded in the system.

In the Reconciliation Report, one column is there (i.e., CPAvailableInGstr98A) in which it is mentioned that the particular invoice is reflected in Table-8A of GSTR-9 or not. So, user can see the reconciliation of ITC with GSTR-2A/2B or Table-8A of GSTR-9 by downloading one reconciliation report only.