Reconciliation of GST Returns/Invoices is a recurring event and needs to be performed periodically to claim the maximum credit as well as to avoid mismatches on a larger scale.
But as a fact, mismatch in GST Returns and/or invoices has always been one of the most tedious tasks in the GST regime. Most of the businesses usually talk about the problems faced in terms of this issue.
Reconciliation under GST is all about matching the data filed by the supplier VS the buyer respectively in their GST returns and further recording of all the transactions that have been made during that particular period. The whole process for reconciliation ensures that no sales or the corresponding purchases are omitted or wrongly reported in the GST Returns. Significant financial losses and compliance breaches can be eliminated if these reconciliation process are made regularly and compulsory within the organization.
All the taxpayers should reconcile their data regularly with that of the vendors to claim eligible ITC (Input Tax Credit). Although the process of reconciliation is not too much difficult but can be time-consuming, as the taxpayers are required to keep an eye on any discrepancy or mismatches regularly otherwise it may affect the ITC claim.
Here in this blog, we will know how to avoid GST return/invoice mismatches by following these 5 easy steps:
N.B. – Please ensure that you pay adequate attention while matching the purchase register with GSTR 3B (uploaded on monthly basis) and with GSTR-2A details (data populated form the GSTR-1 filed by supplier). It is important to arrange the books of accounts, the GSTR-3B return, and GSTR-2A form properly to get the right ITC on the relevant purchases; alternatively, the taxpayer will lose the ITC claim and will lose the game with paying extra taxes.
N.B. – Any taxpayer who has not claimed ITC in a previous month can get benefits of the same in the subsequent months, but not later than the filing of annual return i.e GSTR -9 or filing of GST returns for the month of September of the subsequent financial year, (whichever is earlier). Any sort of correction or changing to the previously filed returns can be executed within the prescribed timeline.
GST reconciliation is an important activity and thus, needs to be performed by time to time to claim optimum credit and to avoid unnecessary complications due to mismatches. All the taxpayers shall communicate the queries with his /her recipients or vendors at the soonest and file errorless returns.
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