GST reconciliation primarily involves matching the data uploaded by the suppliers with those of the recipient's purchase data. This basically includes comparing the GSTR-2A auto-populated from suppliers data and the purchase data recorded by the receiver of the supplies.
Importance of reconciling under GST
It is very important to reconcile GST returns data because of the following reasons:
- As per new GST returns, the taxpayers can only claim ITC if the particular invoice is present in the GSTR-2A / supplier’s data. Therefore, all businesses need to reconcile and claim ITC correctly.
- If the vendor declared his GST liability, and the purchaser has not availed the credits in GST returns. Then the credits would be lost on those invoices. So, it is best to do data reconciliation on a regular basis so that you won’t lose the ITC claim. This reconciliation process will ensure no ITC loss on any invoices.
- To avoid duplication, taxpayers must consolidate and reconcile the values. This will ensure the correct declaration and maximize the credit of input taxes.
Procedure to be followed:
- Login on the GST Software Portal.
- Click on File GST Return.
- This is compliance landing page, Here Select Financial Year and Period - Monthly, Quarterly or Yearly and Tax Period.
- Click on Proceed.
- Once click on proceed, all data comes here from Portal Automatically according to the Period - Monthly, Quarterly or Yearly.
- Here you have import your Books data through - Import Books Data Option.
- Here you have Download the Blank excel template, Fill the excel sheet or import the same on same screen.
- Once Import the data here, All data shown in one screen only.
- In same type you have checked Invoice wise Reconciliation also.
This will Helps.