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What is GST Reconciliation & How it is Different from GSTR 2A Reconciliation

What are GSTR-2B and GSTR-2A statements?

GSTR-2A is a statement of inward supplies for the taxpayer. It contains information that is supplied when the suppliers upload the following statements; GSTR-1 (filed by a regular registered seller), GSTR-6 (filed by an input service distributor), GSTR-7 (filed by a person liable to deduct TDS), and GSTR-8 (filed by an e-commerce operator). GSTR-2A is a real-time statement as it reflects the changes that take place when documents are uploaded.

GSTR-2B is also an auto-populated ITC statement, similar to GSTR 2A. The only change is GSTR 2B is a static statement generated on 14th for the previous month. GSTR-2B is generated once a month and it does not change until the next month.


Difference between GSTR-2B and GSTR-2A

GSTR-2B

It is a static document that is generated on the 14th of every month and consists previous month’s data.

The statement for the previous month is generated on the 14th, so you can only view or download it from that day onwards.

GSTR-2A

It is dynamic as it constantly changes as and when the supplier uploads invoices or files GSTR 1

Being dynamic, the statement is always available for viewing or downloading whenever you need to see supply-related details.

Note: Both GSTR-2B and GSTR-2A statements cannot be filed as they are auto-generated and contain details of inward supplies.

What is GST reconciliation, and how is it different from GSTR-2A reconciliation?

GST reconciliation is an umbrella term that is used to describe any reconciliation that occurs in GST whereby two or more data sets are compared. Some of the common types of GST reconciliation are as follows.

  • GSTR-2A/GSTR 2B reconciliation is the process of matching your books with the details available on the GSTR-2A/GSTR-2B form generated by the GST portal.

  • Reconciliation between GSTR-3B and GSTR-2A/GSTR-2B to find the difference between how much input tax credit is shown.

  • Reconciliation between GSTR-1 and GSTR-3B to spot any errors and discrepancies in the sales details which lead to erroneous sales calculations.

  • Reconciliation between your books of accounts and GSTR-1 to check the sales details available in your books of accounts compared to the ones generated by the e-invoicing software.

  • Reconciliation between GSTR-3B and your books of accounts to match the tax payable to ensure the right amount of tax is being paid.

GSTR-2A/GSTR 2B reconciliation is a specific type of reconciliation that occurs whereby the generated GSTR-2A/GSTR-2B of a tax period is compared with the data in your purchase register. It is important to find whether some invoice data is missing from the statement because the suppliers did not file it timely. It can help find invoices that have errors in them. It can also help ensure the GST payment is done timely and accurately, preventing overpayment or underpayment of GST. The reconciliation also ensures you claim ITC once, preventing you from paying penalties due to incorrect practices.

Conclusion

Reconciliation under GST is a significant process that must be regularly performed to safeguard your ITC. Different types of reconciliation have their benefits and you must ensure you perform reconciliation that applies to you regularly. This ensures you are properly filing your returns, claiming the right ITC amount, and the data sets match without any errors. This will save you from penalties and suspension of GST registration. Generating GSTR-2A/GSTR-2B and performing GSTR 2B reconciliation is one of the most important reconciliation processes.

Additional capabilities of TallyPrime's latest version

The latest version of TallyPrime is filled with numerous features to cater to your GST as well as other business function needs. Simply upload your GSTR-2A/2B statement, and TallyPrime will automatically reconcile and provide you with a concise and detailed summary of the reconciled transactions and discrepancies. The best aspect is that all unreconciled transactions are identified in several categories, allowing you to determine the cause of the discrepancy and take the most appropriate action to correct it. Here is a quick list of things that you can do using the GSTR-2A/2B reconciliation feature of TalyPrime:

  • Recognize the unreconciled transactions

  • Identify invoices not uploaded by your supplier

  • Track invoices with mismatches in the return period

  • View reconciliation status summary

  • Identify probable matches

  • Use the intuitive design of reconciliation report easily

  • Manage multiple GSTINs for a single company.


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