Overlooking the comparison and reconciliation between GSTR 3B and GSTR 2A may hamper the Input Tax Credit (ITC) you have claimed. Along with this, you can verify the claimed ITC during a relevant period. Moreover, reconciliation of GSTR 3B before filing will help you to avoid show-cause notices from tax authorities.
The following topics have been discussed in this article like how to reconcile GSTR 2a with GSTR 3b, the difference between GSTR 2a and GSTR 3b, GSTR 3b and GSTR 2a mismatch etc
Under Goods and Services Tax (GST), GSTR 3B and GSTR 2A both are GST return filing forms GSTR 2a vs GSTR 3b. Where form GSTR 3B is a self-declaration form used by the taxpayer. Further, GSTR 3B is a monthly summary return that is filed by the 20th of the month succeeding the one for which return is being filed. ITC is made available to taxpayers depending on the details entered in Form GSTR 3B Table 4:
On the other side, Form GSTR 2A is an auto-populated GST Return that shows outward invoices entered by your suppliers. The details in GSTR 2A gets auto-filled by the Form GSTR 1 which is filed by your supplier disclosing monthly sales.
Under GST, ITC reconciliation between forms GSTR 3B and GSTR 2A is important for taxpayers. As the available ITC amount disclosed in GSTR 3B Table 4(a) is eligible after being reconciled and matched with the details of tax disclosed in GSTR 2A.
Reconciling GSTR 3B and GSTR 2A is important because:
Further, Annual return filing in GSTR 9 also requires ITC reconciliation according to GSTR 3b vs GSTR 2a in GSTR 9 Tables 6 and 8 across months.
In case the details reported in GSTR 3B and GSTR 2A do not reconcile, it may be due to the following reasons:
GSTR 2a and 3b reconciliation in such cases will not be possible because a corresponding GSTR 1 will not have been filed for the same or ITC will not have been claimed in due time.
In case discrepancies related to the excess claim of ITC are found in GSTR 3B and GSTR 2A, then the taxpayer will have to pay the excess amount along with interest. Therefore, regular reconciliation and matching are important to ensure that only the correct amount of ITC is claimed by the taxpayer.