Index
- Why is GSTR-2A Reconciliation important?
- Process of GSTR-2A Reconciliation
- Books of Accounts and GSTR-2A Mismatch
- GSTR-3B and GSTR-2A Mismatch
GSTR-2A is an auto-populated return in the buyer’s account on GST Portal. It displays information of the Input Tax Credit, TDS credit, and TCS credit based on the returns filed by the seller i.e. GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8. Further, GSTR-2A reflects the data of invoices uploaded by the seller while filing GSTR-1. Thus, it is important to match the data of Input Tax Credit claimed in GSTR-3B with that of Input Tax Credit reflected in GSTR-2A. This is called GSTR-2A Reconciliation.
Why is GSTR-2A Reconciliation important?
It is necessary to reconcile GSTR-2A for the following reasons:
- GST authorities have issued notices to many taxpayers for mismatch in GSTR-3B and GSTR-2A. These taxpayers should either pay the differential amount or respond to such notice. It is thus important to reconcile GSTR-2A to avoid such notices in future
- To ensure that the buyer has not missed recording entry of a purchase invoice or has not recorded a purchase invoice more than once
- It is important to rectify the error of the seller in filing GSTR-1 and error of the buyer in filing GSTR-3B
- To ensure that wrong input tax credit is not claimed by the buyer on the basis of a fake invoice
Process of GSTR-2A Reconciliation
- Download GSTR-2A
The taxpayer can download GSTR-2A from his account on the GST Portal. You can refer the below article to understand the stepwise process to download GSTR-2A.
- Reconcile GSTR-2A with Purchases and take action for mismatch
Match the input tax credit as per purchases in the books of accounts with the input tax credit as per GSTR-2A. Evaluate the reasons for mismatch and take action to reconcile the input tax credit. The taxpayer should then file GSTR-3B with the correct amount of input tax credit.
- Reconcile GSTR-2A with GSTR-3B and take action for mismatch
If the GSTR-3B of the relevant period has already been filed, match the input tax credit as per GSTR-3B with the input tax credit as per GSTR-2A. Evaluate the reasons for mismatch and take action to reconcile the input tax credit.
Books of Accounts and GSTR-2A Mismatch
| Reason for mismatch | Action to reconcile | |
| ITC in GSTR-2A > ITC in Books | The buyer has not reported a purchase invoice in his books of accounts | The buyer should record the purchase invoice in his books of accounts |
| ITC in GSTR-2A > ITC in Books | The seller has mistakenly reported the invoice in buyer’s name | The seller should rectify his error while filing the sales return of next return period |
| ITC in GSTR-2A < ITC in Books | The buyer has mistakenly reported a purchase invoice in his books of accounts | The buyer should cancel the entry of purchase invoice from your books of accounts |
| ITC in GSTR-2A < ITC in Books | The seller has not reported an invoice in his sales return | The seller should report the invoice while filing the sales return of next return period |
GSTR-3B and GSTR-2A Mismatch
| Reason for mismatch | Action to reconcile | |
| ITC in GSTR-2A > ITC in GSTR-3B | * Seller has reported invoice in his sales return * Buyer has not recorded the invoice in his books of accounts and has already filed the GSTR-3B of the return period without claiming the credit of this invoice |
The buyer should claim the excess credit in the GSTR-3B of next return period |
| ITC in GSTR-2A > ITC in GSTR-3B | * Seller has mistakenly reported the invoice in buyer’s name * Buyer has not recorded the invoice in his books of accounts and has also not claimed input tax credit on it under GSTR-3B |
The seller should rectify his error while filing the sales return of next return period |
| ITC in GSTR-2A < ITC in GSTR-3B | The buyer has mistakenly reported a purchase invoice in his books of accounts and also claimed the input tax credit on the same while filing GSTR-3B | The buyer should reverse the excess credit while filing GSTR-3B of the next return period |
| ITC in GSTR-2A < ITC in GSTR-3B | * Seller has not reported an invoice in his sales return * Buyer has claimed the input tax credit on the invoice while filing GSTR-3B |
The seller should report the invoice while filing the sales return of next return period |
FAQs
If there is any mismatch in the actual input tax credit against the input tax credit in GSTR-2A, the buyer should intimate the seller. However, he cannot correct the seller’s mistake since it is an auto-populated return and cannot be edited.
No, you don’t have to file Form GSTR-2A. It is a read-only document provided with the record of all the sales from various suppliers in a given tax period. You can view or download GSTR-2A from your account on the GST Portal.
1. Seller uploads data and files GST Return on the GST Portal
2. GSTR-2A in the buyer’s account gets auto-populated
3. Buyer views or downloads the GST Return
4. Buyer reconciles input tax credit in GSTR-2A with the input tax credit in GSTR-3B
5. The buyer takes action for mismatch in reconciliation by communicating with the seller
One of my supplier has billed me material on 24/08/2022. His GSTR certificate is dated 10/08/2022. He did not file GSTR1 for August 2022. For september 2022 he has filed GSTR1 and the invoice is reflected in my GSTR2A. However invoice date mentioned is 07/09/2022. When I questioned him he said that this is due to some technical error. He said that he is willing to give in writing.
What is the process in this case ?