The Hidden Issues with GST Reconciliation

Prakash Matre
Prakash Matre at November 22, 2022

Let' Reveal GST Reconciliation Hidden Issues

The hidden issues with GST Reconciliation are similar to ignoring the daily chores. This might look ok in the beginning but after some time you start realizing the importance of it.

For instance, if you do not bring groceries for a month, your groceries start getting out of stock. Similarly, not reconciling your purchase register with your GSTR 2A, you might lose your ITC. This may look fine when the amount is less but when the amount is high you might regret not doing reconciliation.

In this article, we will discuss the hidden issues with GST Reconciliation software and their possible solution.


The Hidden Issue with GST Reconciliation

The hidden issues with GST Reconciliation between GST returns are:

Invoices Number Mismatch

It is a situation where the invoice numbers that you have recorded are different from the supplier’s invoice number received in the GST Return 2A.

GSTIN or HQ Mismatch

In a case, if you have a different business unit, there can be a scenario when the supplier mentioned another GSTIN or HQ instead of actual GSTIN of your business unit.

For instance, if you have two business units Delhi and Mumbai and you have purchase machinery under the name of Delhi unit. But the supplier has mentioned the GSTIN of Mumbai business unit.

Invoice Date Mismatch

You may also face such an issue where the invoice date recorded by you are completely different from the supplier invoices date.

Different Return Period

You have recorded the invoices in different Return period than that of a supplier or vice-versa.

Different Methods of Rounding Off

There can be a situation when your recorded invoice value may differ from the supplier's invoice value by minor value. This can happen because you both follow different methods of rounding off. In addition to this, there can be a situation or you had taken some figure in round off or discount but the supplier didn't do the same

Different Nomenclature

This is one of the hidden issues with GST Reconciliation you might have used different nomenclature then that of a supplier.

For instance, if you have used a different pattern of invoice number as Inv 01/2018 than that of the supplier Inv 01.


GST Reconciliation Solution to Claim 100% ITC

You might be looking for a solution to cover all the hidden issue with GST Reconciliation to claim 100% ITC. Here is the list of features that GST Software should include to cover all the above-mentioned teething problems:

Existing ERP Integration

The GST software that you have chosen must integrate with your existing ERP quickly. This ensures that your cost and manual work does not increase while complying with GST.

Handling Massive Data

You must ensure that such GST software is able to handle massive invoice data so as to reconcile GST Return quickly.

Easy Uploading and Extraction

While choosing GST software make sure that the data easily upload into your system for reconciliation. Also, after carrying out the reconciliation process it should be able to extract the file from your system within no time.

Deep Insight Reporting

At the time of selecting GST software, you check out whether it supports deep insights in the reconciliation reports.

Seamless Sharing

The GST software should have a seamless sharing feature. This will helps you to enable your accountant to have a gist of your reconciliation result.


This is the major hidden issue while selecting GST software you must keep this point in mind. The GST software that you choose is dynamic that should be able to evolve fast and in-line with Govt. changes.

Smart and Intelligent

The GST software that you select for GST Reconciliation shall be smart and intelligent enough to categorize all missing and wrong information. The wrong information might include wrong Invoice number, date, taxable value etc., and also the details missing in your purchase register or GSTR2A.

Less Human Intervention

Once you integrate GST software into your system, there will be less human intervention. This integration will ensure that there will be less human error by automating your GST Reconciliation process.


Considering all the above points, the GST Software shall be able to make the GST Reconciliation process hassle free over the period of time so that you do not feel the burden of GST compliance.

So, Masters India provides autoTax GST software that is packed with all the above-mentioned features. In addition to this autoTax GST software cover is smart enough to auto-identify and match all the entries to ensure that you claim 100% ITC.

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