Procedure to Reconcile GSTR-2A/GSTR -2B Data with GST ITC Reconciliation Register (The Manual Way)
Step 1) Keep track of invoice statuses as “Submitted” or “Not Submitted.”
Step 3) Determine the reasons for any ITC register entries that do not match GSTR-2A/2B
Step 4) Use GSTR-2A /2B to correct the mismatched entries in the ITC register caused by your error.
Step 5) Identify the entries that do not match due to vendor error.
Step 6) To understand the status, divide the entries into mismatched, unmatched, or entries with a few particulars missing.
Step 7) Determine how to contact such vendors to communicate the error.
Step 8) Communicate with the vendor about the mismatched and unmatched entries in GSTR-2A /2B caused by vendor error.
Step 9) Locate and claim any unused ITC in GSTR-2A /2B.
Step 10) Taking necessary actions such as retaining email trial, issuing debit notes, or delaying payment until the vendor corrects all incorrect entries.
Procedure to Reconcile GSTR-2A /2B Data with GST ITC Reconciliation Register (The Connect2Business Way)
Step 1) Login into Connect2Business.in
- If you use connect2business Tally, the same credentials will work for the ITC reconciliation account.
- If you are new to the platform, you must create an account.
Step 2) Authenticate Your GSTN
- The authentication will allow Connect2Business to fetch GSTR-2A /2B details and integrate them automatically with its interface. (updating the data every 24 hours)
Step 3) Import your Purchase Register
- If you are a connect2business Tally user, your records have been automatically configured with GST data
- If you use any other platform for maintaining your Books, you can import the data by uploading a CSV file.
Step 4) Automation Process
- In this step, all the data will be automatically arranged systematically, with all the entries’ real-time status divided into
- Probable Match
- Missing in GSTR-2A/2B
- Missing in Books
- The data is filtered to analyze the reconciliation situation quickly and straightforwardly. All vital information such as the supplier’s name, GSTN, address, contact information, and so on, and the tax amount segregation and status are displayed in tables and charts to make everything simple to understand.
The Finishing Line (Take-aways)
Compliance with GST ITC reconciliation is critical, and as previously stated, when the process is performed and results are obtained manually, it takes a significant amount of time. Obtaining data, organising and labelling each entry according to their status, deciding on the steps to be taken, locating the supplier and the supplier’s contact information, and finally coordinating with the supplier by communicating the corrections to be made is a time-consuming and tedious process.
Connect2Business not only automates the entire reconciliation process, cutting the number of steps required in half, but also makes data segregation and compliance accurate, quick, and understandable.
To avoid penalties due to the inherent complexities of ITC reconciliation and to make your time-consuming monthly task of managing ITC reconciliation to GSTR-2A /2B simple.