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Revealed: Comparison and Reconciliation of GSTR 3B and GSTR 2A

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

  1. About Comparison between GSTR 3B and GSTR 2A
  2. Importance of GSTR 3B & GSTR 2A Reconciliation
  3. Reasons for GSTR 3B & GSTR 2A Non-reconciliation

1. Comparison Between GSTR 3B and GSTR 2A

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:

Comparison between GSTR-3B and GSTR-2A

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.

2. Importance of GSTR 3B & GSTR 2A Reconciliation

Reconciling GSTR 3B and GSTR 2A is important because:

  • Notices in GST ASMT-10 Form have been issued by GST authorities to several taxpayers to reconcile claimed ITC in GSTR 3B with GSTR 2A. Either a reply from the taxpayer will be required or else he will have to pay the differential amount.
  • Tax evaders have also been penalized for claiming ITC based on fake invoices
  • Reconciliation makes sure that the claimed ITC is for the actually paid tax
  • Errors, like missing an invoice or recording it more than once, are eliminated
  • Rectification of errors committed in details disclosed in GSTR 1 or GSTR 3B is possible
  • If outward supplies have not been recorded in GSTR 1 then it can be communicated to the supplier so that any discrepancy is eliminated

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.

3. Reasons for GSTR 3B & GSTR 2A Non-reconciliation

In case the details reported in GSTR 3B and GSTR 2A do not reconcile, it may be due to the following reasons:

  • ITC was claimed for IGST on imported goods and/or services
  • ITC was claimed for GST paid on Reverse Charge Mechanism (RCM) basis
  • Transitional credit was claimed in TRAN-I and II
  • ITC was not availed in the financial year when goods and services were received

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.

Filed Wrong GSTR 3B. How Should I Correct This?

Form GSTR-3B has been made the soul of the GST Act, 2017 vide Notification No.56/2017-Central Tax, dt. 15-11-2017 that seeks to mandate the furnishing of return in FORM GSTR-3B till March 2018. So, it becomes very important to correctly file GSTR Form-3B. Vide Circular No. 07/2017 dated 01-09-2017 the detailed procedure for reconciliation of information … Read moreFiled Wrong GSTR 3B. How Should I Correct This?

GSTR-4A

GSTR-4A is an auto-drafted tax form related to purchases, for composition dealers. The details in this are auto-populated from the information provided/filed by suppliers against the GSTIN of the composition dealer. In this article, you will find: What Is GSTR-4A? Who Is A Composition Dealer? Source Of Information For GSTR-4A Contents Of GSTR-4A How To … Read moreGSTR-4A

GSTR-9B

The CGST Act, 2017 requires certain taxpayers to file annual returns. The annual return contains details regarding purchases and sales made during the year along with other information about CGST, SGST and IGST. There are different types of annual returns as per Rule 80 of CGST Rules 2017, namely; GSTR-9, GSTR-9A, GSTR-9B and GSTR-9C. In … Read moreGSTR-9B

Difference Between GSTR-9 And GSTR-9C

The Central Board of Indirect Taxes and Customs (CBIC) has extended the due date for filing GSTR-9 and GSTR-9C for the financial year 2018-19 to 31 December 2020. It is important to note that these are 2 different statements and are applicable in different situations. In this article, we will help you understand the differences … Read moreDifference Between GSTR-9 And GSTR-9C

File Nil GSTR-3B Via SMS

On 8 June 2020, the Central Board of Indirect Taxes and Customs (CBIC) rolled out the facility for GSTR-3B filers to file Nil GSTR-3B through SMS. That means Taxpayers with Nil liability need not log in to the GST portal to file their GSTR-3B. In this article, you will be able to understand: What Is … Read moreFile Nil GSTR-3B Via SMS

File Nil Form GSTR-1 Through SMS

The Goods and Service Tax Network (GSTN) has enabled the facility to file ‘Nil’ GSTR-1 through Short Messaging Service (SMS) using the registered mobile number from 1 July 2020. This return will be verified by a One Time Password (OTP) sent to the registered mobile number. The SMS filing facility is an effort to ease … Read moreFile Nil Form GSTR-1 Through SMS

Auto-Populated GSTR-3B

All taxpayers registered under GST are required to file Form GSTR-3B wherein, the net GST liability is calculated and then paid. The Goods and Services Tax Network (GSTN) has now made this process easier by auto-populating some values of Form GSTR-3B and presenting such data in the form of a PDF statement. In this article, … Read moreAuto-Populated GSTR-3B