GST Reconciliation
What is GST reconciliation and matching?
In general, reconciliation means comparing two sets of data entries to identify any differences or variances. It is done to correct the unintentional errors earlier committed or any omissions.
Under taxation, reconciliation holds importance because it can give rise to tax short paid or not paid or excess paid as well. Following mismatches or differences can be noticed by taking up following matching and reconciliation exercise:
Differences between the amount of
input tax credit shown in GSTR-
3B and the GSTR 2A/ GSTR-2B
Differences between the amount of input tax credit shown in GSTR- 3B and the GSTR 2A/ GSTR-2B
Differences in sales details
between the books of accounts and
GSTR-1 as auto-populated from
e-invoicing system.
Differences in sales details between the books of accounts and GSTR-1 as auto-populated from e-invoicing system.
Discrepancies in sales details
between GSTR-3B and GSTR-1
Discrepancies in sales details between GSTR-3B and GSTR-1
Difference in tax payable upon
comparing the auto-populated
GSTR-3B with the books of
accounts.
Difference in tax payable upon comparing the auto-populated GSTR-3B with the books of accounts.
Differences in the provisional
credit as claimed under CGST Rule
36(4) and the actual credit that
is claimable as per GSTR-2B across
return periods.