GSTR 2A Reconciliation : Process, Mismatch, Action

Index

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:

  1. 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
  2. To ensure that the buyer has not missed recording entry of a purchase invoice or has not recorded a purchase invoice more than once
  3. It is important to rectify the error of the seller in filing GSTR-1 and error of the buyer in filing GSTR-3B
  4. 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

  1. 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.

  2. 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.

  3. 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

What if my supplier has not filed GSTR1 and invoices are not reflecting in my GSTR 2A?

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.

Do I as a taxpayer have to file GSTR-2A?

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.

How does the process of GSTR-2A Reconciliation work?

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

GSTR 2A : Meaning, Input Tax Credit, Return Filing

What is GSTR 2A?

GSTR-2A is an auto-populated return that contains details of the input tax credit on purchases, TDS credits, and TCS credits of a buyer. It is auto-populated based on the invoices uploaded by the seller on filing his GST Return. The GST Return data will be auto-populated from data uploaded in the following returns:

GST Return Nature of Seller
GSTR-1 Regular Dealer
GSTR-5 NRTP i.e. Non-Resident Tax Payer
GSTR-6 ISD i.e. Input Service Distributor
GSTR-7 TDS Deductor
GSTR-8 TCS Collector i.e. E-Commerce Operator

How are invoices auto-populated in GSTR-2A?

  • Seller uploads data and files GST Return on the GST Portal
  • GSTR-2A in the buyer’s account gets auto-populated
  • Buyer views or downloads the GST Return
  • Buyer reconciles input tax credit in GSTR-2A with the input tax credit in GSTR-3B
  • The buyer takes action for mismatch in reconciliation by communicating with the seller

What information is displayed in GSTR-2A?

Part A

  • B2B Invoices – details of invoices uploaded by the seller on filing GSTR-1 or GSTR-5. Click on the GSTIN hyperlink to view the uploaded invoices. Click on the Invoice hyperlink to view the invoice details.
  • Amendment to B2B Invoices – details of invoices amended by the seller on filing GSTR-1 or GSTR-5. Click on the GSTIN hyperlink to view the uploaded invoices
  • Credit / Debit Notes – details of credit note or debit note uploaded by the seller on filing GSTR-1 or GSTR-5
  • Amendment to Credit / Debit Notes – details of a credit note or debit note amended by the seller on filing GSTR-1 or GSTR-5

Part B

  • ISD Credits – details of invoices uploaded by ISD on filing GSTR-6
  • Amendments to ISD Credits – details of invoices amended by ISD on filing GSTR-6

Part C

  • TDS Credits – details of amount paid and TDS deducted on it by TDS Deductor on filing GSTR-7
  • Amendments to TDS Credits – details of amendments in the amount paid and TDS deducted on it by TDS Deductor on filing GSTR-7
  • TCS Credits – details of amount received and TCS collected on it by TCS Collector on filing GSTR-8

FAQs

How is GSTR 2A different from GSTR-2?

GSTR-2 is the return for reporting of purchases that needs to be filed by a regular dealer. However, the GST department later discontinued this return due to increased complexity and portal issues.
GSTR-2A is an auto-populated return in the buyer’s login on GST Portal which is automatically generated once the seller files his GST Return (GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8)

How can I correct my seller’s mistakes in GSTR-2A?

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.

GSTR 2A : View or Download on GST Portal

GSTR-2A is an auto-populated return that contains details of inward supplies (purchases), TDS credits and TCS credits. It is auto-populated based on the return filed by seller. The buyer can view and download GSTR-2A from his account on the GST Portal.

How to Download GSTR 2A?

  1. Visit GST Portal

    Log in to your account on GST Portal.

  2. Navigate to Services

    Click on Returns > Returns Dashboard.

  3. Select the Financial Year and Return Filing Period i.e. the month for which you want to view or download GSTR-2A

    Click on Search. The File Returns page is displayed.

  4. Download GSTR-2A – Click on the Download button

    Click on Generate JSON file to download – to generate data in JSON format
    Click on Generate Excel file to download – to generate data in Excel format
    Note: If the number of invoices is more than 500, then you need to download the invoices in Form GSTR-2A

  5. View GSTR-2A

    Click on the View button. Part-A, Part-B and Part-C are displayed with auto drafted details.

  6. Part A – B2B Invoices, Amendments to B2B invoices, credit/debit notes, amendments to credit/debit notes

    This tab contains details of invoices and credit/debit notes uploaded by the seller on filing GSTR-1 or GSTR-5. To view the details, click on the relevant tab, GSTIN hyperlink and invoice/note hyperlink

  7. Part-B – ISD Credits, Amendments to ISD Credits

    This tab contains details of invoices and credit/debit notes uploaded by an ISD i.e. Input Service Distributor on filing GSTR-6. To view the details, click on the relevant tab and GSTIN hyperlink

  8. Part C – TDS Credits, Amendments to TDS Credits, TCS Credits

    This tab contains details of invoices and credit/debit notes uploaded by a TDS Deductor on filing GSTR-7 and TCS Collector on filing GSTR-8. To view the details, click on the relevant tab.

FAQs

Do I as a taxpayer have to file GSTR-2A?

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.

Can I correct my seller’s mistake in GSTR-2A?

No, the taxpayer cannot edit GSTR-2A. It is an auto-populated return based on the returns filed by the sellers. The buyer can view and download GSTR-2A. If there is any mismatch in the data reflected in GSTR-2A and the taxpayer’s purchases, the taxpayer can inform the respective seller to make corrections in the Sales Return.

Impact of GST on E-Commerce Seller

As per the GST Act, an Electronic Commerce Seller i.e. E-Commerce Seller is a person who makes the supply of goods or services through a digital or electronic platform owned and managed by an e-commerce operator. The impact of GST on e-commerce seller is summarised in the table below:

Provision Impact
Conditions 1.Person sell goods or services through the e-commerce platform owned and managed by e-commerce operator
2. Payment on sales is collected by the e-commerce operator
Registration 1. E-commerce seller of goods – Compulsory Registration irrespective of the turnover
2. E-commerce seller of services – Compulsory registration only if the turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states)
Taxability Liable to charge GST on the goods or services sold to the customers at the applicable GST Rate
Tax Collected at Source (TCS) Receives payment from the e-commerce operator after deduction of TCS @1% on the value of goods or services sold through their platform
TCS Rate 1. Inter-state supplies – IGST @ 1%
2. Intra-state supplies – CGST @ 0.5% and SGST @ 0.5%
TCS Credit Can claim credit of TCS collected by the e-commerce operator by filing GST Return on the GST Portal
GST Return 1. GSTR-2A – auto-populated return that reflects the TCS credit. The TCS credit is added to the e-cash ledger on the GST Portal
2. GSTR-3B – file on or before 20th of next month for payment of GST charged on sales
3. GSTR-1 – file monthly or quarterly based on the turnover of sales
4. GSTR-9 – file on or before 31st December of the next financial year

FAQs

Is it mandatory for e-commerce seller to obtain registration?

* E-commerce seller of goods – Compulsory registration irrespective of turnover
* E-commerce seller of services – Compulsory registration only if turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states)
[Notification no. 65/2017 dated 15.11.17]

Can an e-commerce seller avail the benefit of Composition Scheme under GST?

No. E-commerce seller cannot avail the benefit of Composition Scheme under GST. They must register as regular taxpayers, collect and deposit GST, file GSTR-3B and GSTR-1 on GST Portal.