Getting a job that perfectly matches your personality can play an important role in how your life works out. If you find a perfect job, the problem faced during your work can be resolved. But in a case, if you land up in a mismatched job then even daily job task becomes strenuous.
In a similar way, at the time of reconciling your invoices, a perfect match between your invoices with that of supplier’s invoices ensures you get accurate Input Tax Credit.
But, if in a case, any mismatch arises in the invoices then you need to make sure that the corrections are made.
Some of the conventional errors faced during GST Reconciliation is a mismatch in the taxable value, invoice date and number etc..,
This article deals with the following content:
Before discussing the errors faced during the GST Reconciliation, you must have a fair knowledge about what GST Reconciliation really mean.
Under GST, your eligible ITC is determined on the basis of the invoices uploaded by your supplier.
So, to claim 100% accurate Input Tax Credit you must carry out a comparison between your purchase register and GSTR 2A.
Where purchase register records all the inward supplies made by you during a particular period. Whereas, GSTR 2A is the record of all the outward supplies made by your supplier. Further, GSTR 2A auto-populates on the GST portal at the time when a supplier files his GSTR 1.
In a case if you find any mismatch in the invoices, contacting the suppliers for a few errors would not consume that much time. Whereas, assuming if the mismatched invoices are in the 1000’s, then reconciling such invoices would be a time-consuming process.
Here is the list of 12 conventional errors faced during reconciliation:
Error in the purchase register and GSTR 2A may consist of the following discrepancy:
1. Invoice Date Mismatch
If the Invoice Number is the same for the GST return period but the date is different for the same Invoice.
2. Note Date Mismatch
When the Note Number is the same for the GST Return period but the dates are different for the same Invoice then you may face this error.
3. Place of Supply Mismatch
You may face this error if there is a mismatch in the place of supply mentioned by you and the supplier.
4. Invoice Value Mismatch
When there is a mismatch between the Invoice Value mentioned by you and your supplier.
5. Taxable Value Mismatch
You may find this error when there is a mismatch in the mentioned Taxable Value of your supplier and your invoice.
6. CGST Mismatch
Sometimes, there is a mismatch in the value of the CGST between your purchase register and your supplier. Then in such a case, you may face this error.
7. SGST Mismatch
You can encounter such an error when there is a mismatch in the SGST value between you and your supplier.
8. IGST Mismatch
When there is an interstate supply, then there can be chances that your mentioned IGST does not match with that of the supplier. So, in such a scenario you may find such an error.
9. CESS Mismatch
You may encounter such an error when there is a discrepancy in the CESS value between you and your supplier.
10. Not Present in GSTR – 2A
As the name suggests, this is a situation when you have recorded the transaction in your purchase register but such entry is missing in counterparty (supplier) filed GSTR – 1 i.e. your GSTR 2A.
11. Not Present in Purchase Register
This is the exact opposite of not present in GSTR 2A situation. In this case, your supplier has recorded the transaction in their GSTR 1 i.e., your GSTR 2A but you haven’t recorded it yet.
12. Invoice Number Mismatch
This is a very special situation where all the above-mentioned things are matching but there is a discrepancy in the invoices number.
Whenever you find a mismatch you may contact your supplier to amend his invoices or you may change the invoices to match with that of the supplier. However, this is a time consuming and tedious process.
Imagine if there are thousands of invoices then reconciling such GST invoices becomes a sweat breaking task. In such a scenario autoTax GST software helps you to reconcile thousands of invoices in just a few clicks saving time and compliance cost.