GSTR 2A Reconciliation

GSTR 3B is a summary return. So, the amount of Input Tax Credit available as disclosed in Table 4(a) should match with the tax details disclosed in Form GSTR-2A.

It is very important to reconcile Form GSTR-3B and Form GSTR-2A on account of the following reasons:

• A large number of taxpayers have received notices from the GST authorities asking them to reconcile the ITC claimed in a self-declared return GSTR-3B and system generated Form GSTR-2A. Taxpayers have to reply to such notices else have to pay the differential amount.
• Actions have been taken against the evaders claiming ITC on basis of fake invoices.
• Reconciliation ensures that credit is being claimed only in respect of the tax which has been actually paid to the supplier.
• It ensures that no invoices have been missed/ recorded more than once.
• In case the supplier has not recorded the outward supplies in Form GSTR-1, communication can be sent out to the supplier to ensure that the discrepancies are corrected.
• Errors committed while reporting details in GSTR-1 by suppliers or GSTR-3B by recipients can be corrected.