Auto Reconciliation Of GSTR-2A

GSTR 2 is a return containing the details of purchases/ inward supplies of taxable goods and services. It also includes the supplies on which taxes need to be paid on reverse charge basis.

Every registered taxable person is required to file GSTR 2 within 15 days following the end of a particular month/ quarter.

GSTR 2A is a return automatically generated by GST portal when the supplier files his GSTR 1.

A supplier files GSTR 1 giving the details of outward supplies; the buyer gets intimation of the same in the form of GSTR 2A.

It is a read-only document comprising of accept/ decline option against each invoice.

A taxpayer filing GSTR 2 need not fill all the details of inward supplies. The taxpayer needs to reconcile inward supplies shown in GSTR 2A with his books of accounts and find out modifications and deletions of invoice. Once he accepts any invoice, the details get auto-populated in GSTR-2. 

It is essential to reconcile these two GST returns as the taxpayer can claim an Input Tax Credit (ITC) against an invoice only if it is present in GSTR 2A. It is possible that the supplier has declared GST liability in GSTR 1, but the buyer has not availed credit for the same. Matching helps to ensure that there is no discrepancy in data reported by the buyer and supplier; otherwise, it will lead to ITC reversal.

This is the process of reconciliation is, and it is difficult to check a large number of invoices manually. It is probable that certain invoices are appearing in GSTR 2A but not recorded by the buyer in his books of accounts, and vice versa. Even for invoices appearing in both GSTR 2A and buyer’s books of accounts, there can be a mismatch in invoice value or tax amount or date of invoice. , and they need to contact suppliers to make necessary amendments in the returns being filed by them i.e., GSTR 1.

To check the returns filed by suppliers at the invoice level on GST portal is next to impossible. While there are many software available today to ease out the compliance burden of GST, there is just one software that covers the feature of Auto Reconciliation of GSTR2 and GSTR2A.

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