Reconciliation between GSTR-2A and GSTR-3B
Reconciliation between GSTR-2A and GSTR-3B is an important task that businesses should not miss as it ensures that a taxpayer can claim an accurate input tax credit (ITC). Moreover, GSTR-2A and GSTR-3B reconciliation help a taxpayer to reverse the excess ITC claimed by him/her. So in this blog, we will cover all the aspects related to GSTR-2A and GSTR-3B reconciliation.
What is Form GSTR-2A?
GSTR-2A is an auto-populated return form that can be viewed or downloaded in Excel or JSON files by the GST Portal recipient. GSTR-2A covers all the details declared by the supplier in his GSTR-1.
What is Form GSTR-3B?
GSTR-3B is a type of GST return containing the summary of all outward and inward supplies that need to be furnished by taxpayers on monthly basis.
GSTR-2A and GSTR-3B Reconciliation Importance
Keeping the following reasons in mind, every taxpayer must make a routine to reconcile Form GSTR-2A and GSTR-3B:
- GST authorities have given notices to countless taxpayers requesting that they reconcile the ITC availed in GSTR-3B with GSTR-2A. In case if they fail to do so, they will need to pay the differential sum to the GST authorities.
- Reconciliation between GSTR-2A and GSTR-3B guarantees that ITC is being availed for the tax which has been paid to the supplier.
- To ensure that no invoices have been missed/recorded more than once, and so on
- To communicate with the supplier in case if he/she has not recorded the outward supplies in Form GSTR-1 so that the disparities are rectified.
- Errors if any, can be rectified in GSTR-1 filed by a supplier or GSTR-3B furnished by a recipient.
GSTR-2A and GSTR-3B Mismatch Reasons
Here is the reason when GSTR-2A and GSTR-3B may not reconcile:
- ITC is claimed on the import of goods
- Input Tax Credit (ITC) is claimed on the import of services
- ITC is claimed for the GST paid on the reverse charge mechanism.
- ITC for goods and services received in the previous financial year (2020-21) but claimed in the current financial year (2021-22).
Consequences of Mismatch of GSTR-2A and GSTR-3B
When a recipient takes an excess ITC claim due to any mismatch between GSTR-2A and GSTR-3B, he/she will have to pay the excess amount of ITC claimed with interest. So, to avoid such a situation a taxpayer must reconcile their GSTR-2A and GSTR-3B monthly or else opt for an automated solution like GSTrobo®.
One Reply to “Reconciliation between GSTR-2A and GSTR-3B”
NEED HELP 3B AND 2A RECONCILATION