GSTR-2A reconciliation is an essential aspect of claiming input tax credit (ITC). Without proper reconciliation, you could miss out on ITC on your invoices.
TallyPrime allows you to reconcile GSTR-2A in a hassle-free manner. First, go to the GST Portal and download the GSTR-2A data as a JSON file. Now, go to TallyPrime, go to Statutory Reports, and then to GST Reports. Import the JSON file in TallyPrime and reconcile it with the reports on the portal.
If you need a detailed process, here’s a definitive guide to follow.
What Is GSTR-2A?
Form GSTR-2A is an auto-generated, purchase-related tax return that is generated when you file GSTR-1, GSTR-5, GSTR-6, GSTR-7, or GSTR-8, depending on your business model. When you file one of these forms, the GST portal captures the information and creates Form GSTR-2A. It’s a Statement of Inward Supplies and comprises information about the goods and services a B2B buyer has purchased in a month.
GSTR-2A is a dynamically-generated, read-only tax return used by GST-registered buyers for input tax credit (ITC) details while filing the forms GSTR-3B and GSTR-9. However, taxpayers need to refer to GSTR-2B, a static version of GSTR-2A, for filing GSTR-3B.
GSTR-2A Vs. GSTR-2B
Form GSTR-2A and GSTR-2B are both auto-drafted statements that provide ITC details to the recipient of goods and services. Both are monthly statements that serve a similar purpose. However, there are some differences between GSTR-2A and GSTR-2B that you should know.
- GSTR-2A is dynamic and changes daily based on the supplier’s action. GSTR-2B is static, and it doesn’t change depending on a supplier’s action.
- GSTR-2A can capture information from GSTR-7 and GSTR-8 as well, whereas GSTR-2B can’t.
- GSTR-2A doesn’t have an advisory on the action a buyer needs to take. GSTR-2B includes information on the action a taxpayer should take based on whether the ITC is eligible or ineligible.
- No cut-off date is applicable to GSTR-2A. In the case of GSTR-2B, it’s the 11th or 13th of next month.
What Is GSTR-2A Reconciliation?
GSTR-2A reconciliation is the process of matching GST data provided by the supplier with the data given by the recipient. It includes comparing the supplier’s data in the GSTR-2A form with the purchase data recorded by the buyer or receiver of the supplies.
Reconciling GST returns data is crucial, as it enables taxpayers to claim ITC. Here’s why GSTR-2A reconciliation is important.
- Taxpayers can pay ITC only if the invoice is present in the supplier’s data or GSTR-2A, which requires proper GSTR-2A reconciliation.
- Regular data reconciliation ensures that the vendor and buyer are on the same page. If the vendor declares their GST liability and the buyer doesn’t claim their GST returns, issues with claiming ITC can arise.
- GST reconciliation eliminates the risk of duplication and ensures correct declaration.
GSTR-2A Reconciliation in TallyPrime
TallyPrime by Tally Solutions Private Limited is a fully-featured business management system that allows you to manage all your operations, like accounting, finances, payroll, inventory, and more, in one place. You can integrate it with multiple companies/businesses and manage all tasks of all your businesses in one place.
One of the key capabilities of GSTR-2A is that it offers 5x faster GST reconciliation than traditional methods. Furthermore, it comes with intelligent auto-identification abilities to match entries with precision and assure hassle-free ITC claims.
TallyPrime streamlines the GST reconciliation process and allows you to reconcile GSTR-2A quickly and without any errors. Here are some benefits of GSTR-2A reconciliation in TallyPrime.
- Reconcile GSTR-2A quickly and effortlessly.
- Eliminate duplication by ensuring ITC credit isn’t claimed twice against one document.
- Eliminate common human errors associated with GST reconciliation.
- Ensure harmony between the vendor and the buyer, and avoid the risk of losing an ITC claim.
- Reverse the tax credit in the GSTR-3B.
How to Reconcile GSTR-2A with TallyPrime?
Having discussed the purpose of GSTR-2A reconciliation and why you should do it using TallyPrime, let’s look at a step-by-step process to reconcile GSTR-2A in TallyPrime. Here are the steps to follow.
Open GST Reports
To open GST reports, go to the Gateway of Tally. Now, click on Display and then on Statutory Reports to come to the reports section. Click on GST and then on GSTR-2. The GSTR-2 Portal will open, which will contain information about all the particulars, including your total inward supplies, invoices, uncertain transactions, and more.
Eliminate Mismatch and Corrections
In the GST portal, head to the Total Vouchers section. Under the Included in Return tab, you’ll see two options:
- Invoices ready for returns
- Invoices with a mismatch in information
Be sure that you don’t have any invoices in the “Invoices with mismatch in information” section.
Similarly, you should have 0 entries in the following sections:
- Uncertain transactions (Corrections needed)
- Incomplete Information in GSN/SAC Summary (Corrections needed)
If there’s any mismatch, it could lead to problems with GSTR-2A reconciliation. So, ensure that there are no mismatches or uncertain transactions.
Load the JSON File
In the GSTR-2 Portal, select the month for which you want to reconcile your GSTR-2. Now, press ALT + O. The Import drop-down menu will appear. Click on Load JSON. Enter the File Path and the File Name to download the JSON file.
If you don’t have the JSON file, you can log into the GST India portal and download the GSTR-2A JSON file for the desired month. To download the file, head to the Auto-Drafted Details (GSTR2A) section on your GST portal and click on Download. Then, click on Generate JSON File to Download, followed by Click Here to Download JSON - File 1.
The JSON file will be downloaded to your system in a ZIP format. Now head back to TallyPrime and load the JSON file. You don’t need to extract the ZIP file or change it in any way. TallyPrime will load the JSON file in the ZIP format. After selecting the JSON file, click Enter.
You will see a pop-up stating that the file has been loaded successfully. The pop-up will also tell the total number of invoices loaded and ask you whether you want to update the reconciliation of invoice status. Click on Yes. The reconciliation status may take a few seconds.
Compare the Invoices
Once the reconciliation is complete, you’ll see the reconciled invoices in the Particulars section in the GSTR-2 Portal. You’ll see two types of invoices: “generated by portal” and “as per books.” The invoices generated by the Portal will be in blue color, while the invoices as per books will be in black italics. Your Portal could have numerous categories of invoices, like B2B Invoices - 3 - 4A, B2BUR invoices - 4B, Import of Services - 4C, and more.
In the Particulars section, you’ll be able to compare the Voucher Count, Taxable Amount, and Tax Amount of the invoices generated by the Portal and books. You can click on any invoice category generated by the Portal (in blue) to see all the parties (or suppliers) and their respective number of invoices. If you want to see all invoices separately, you can go to the voucher view by clicking on F5.
Alternatively, you can press ALT + A from your GSTR-2 Portal after the reconciliation process to view the status of your invoices. All your invoices will be divided into four categories:
- Fully Matched: The parties and amounts in the Portal and books matched fully without any discrepancies.
- Partially Matched: The parties exist in both the Portal and books, but there is a mismatch in the amount.
- Available in the Books Only: These parties are found in the books only and not in the Portal. This could mean the supplier missed a buyer when filing their return.
- Available in the Portal Only: These parties are found in the Portal only and not in the books. This could indicate that the purchases made by the buyer have not been recorded.
What Are the Next Steps?
Once you complete GSTR-2A in TallyPrime, you will be able to see discrepancies in the Tax Amount. If you have claimed extra ITC, you can reverse it by showing the differences.
It’s better to export your voucher register into Excel or another spreadsheet. This enables you to calculate the differences and customize your reporting. To export the voucher register, press ALT + E and click on Current.
By default, TallyPrime will select the File Format to XML (Data Interchange). You can change it by clicking on Configure, then on File Format, and then on Excel (Spreadsheet). You can also export the voucher register as ASCII (Comma Delimited), HTML (Web Publishing), JPEG (Image), and PDF (Read-Only Document) files.
Now, name your file, select the file path and location, and click on Send to begin the exporting process. The process could take a few seconds. After the exporting is complete, the Excel file will open automatically, and you can customize it as per your needs.
Wrapping Up
The importance of GSTR-2A reconciliation can’t be overstated. It helps you claim ITC and also reverse ITC if you have claimed extra. Reconciling your GSTR-2A allows you to eliminate any discrepancies between the invoices in your Portal and books.
There are numerous reasons to use TallyPrime for GSTR-2A reconciliation. It allows you to reconcile the Form GSTR-2A quickly in a few clicks instead of spending on complex spreadsheets.
Need help with GSTR-2A reconciliation? Contact Logic Fusion for GSTR-2A reconciliation and other Tally support services.