Reconciliation between Purchase Register and GSTR-2B

To avoid input tax credit reversal due to any mismatch in information detailed by provider and recipient, you must cautiously reconcile the data in the purchase register and GSTR-2B. So, in this blog, we will talk about the importance of reconciliation between the purchase register and GSTR-2B.

What is Purchase Register? 

A purchase register shows the data of the purchases made by a business concern during a period. In simple words, the purchase register fundamentally rattles off the details about the purchases with seller name, invoice date (chronological order), invoice value, place of supply, and so forth.  

What is GSTR-2B? 

GSTR-2B is a newly introduced return that gets auto-drafted every month. GSTR-2B consists of all the data related to eligible and ineligible ITC for each month. It is available for all normal taxpayers, SEZ and casual suppliers. GSTR-2B auto-populates based on the following returns filed by the counterparty: 

Type of GST Return	Furnished by
GSTR 1	Normal Taxable Person
GSTR-5	Non-Resident Taxable Person
GSTR 6	Input Service Distributor

In addition, Form GSTR-2B also contains information on import of goods from the ICEGATE system including inward supplies of goods received from SEZ Units / Developers. 

Importance of Reconciliation between GSTR-2B and Purchase Register 

It is important to carry out reconciliation between GSTR-2B and purchase register because: 

1. The taxpayers will not be allowed to claim input tax credit, if it over and above the eligible ITC limit mentioned in the GSTR-2B. So, reconciliation between GSTR-2B and purchase register has become the need of an hour. 
2. To prevent ITC loss that happens when the suppliers declare his GST liability but ITC is not claimed by the purchaser in his GST returns. Hence, it is important to reconcile GSTR-2B and purchase register so that you do not lose the ITC on any missed purchase invoices. 
3. To avoid any duplicity of ITC availed against the same document. So, taxpayers must match and reconcile the values mentioned in GSTR-2B and purchase register. 
4. To maximize the input tax credit claim by matching the GSTR-2B and purchase register data. 

Bottom Line 

Organizations can save working capital through by reconciling GSTR-2B with purchase register data. However, the problem arises when the purchase register data is in bulk and manually reconciling this data with GSTR-2B becomes impossible. That is why GSTrobo®, an industry-leading GST Suvidha Provider (GSP), has created an advanced GST reconciliation software that reconciles thousands of data with-in seconds and reports real-time mismatches so that you can take appropriate actions to claim 100% eligible input tax credit (ITC). This reconciliation software will not only eliminate the scope of error due to human intervention but also lower the time-taken for GST reconciliation by 99% when compared with the manual reconciliation.