GST – ITC Recon (GSTR 2A Reconciliation)
Paul & Aravind’s GST – ITC Recon offers the most easiest Reconciliation between GSTR 2A and ITC as per books. GST – ITC Recon is the only and best available stand-alone Reconciliation tool for GSTR 2A Reconciliation. The intelligent matching system has been highly lauded by reputed corporates.
1. What is GST ITC Recon?
This tool will be very useful for GST ITC Reconciliation between GSTR2A(GSTN DATA – JSON) & GSTR2(ASSESSEE DATA – ITC AS PER BOOKS). It is a very easy to use software that works based on JSON file downloaded from GSTN portal and a simple CSV template to be made ready from the books. Reconciliation of GSTR 2A with books is a very crucial exercise to be undertaken by every GST registered assessee.
2. Why is GSTR 2A Reconciliation Important?
As per the provisions of Input Tax Credit as contained in Sec. 16 of the GST Act, Input Tax Credit has to be claimed before –
1. Actual filing of annual return or
2. Due date for filing of return for the month of September following the end of financial year
Therefore, if Input Tax Credit has been missed to be claimed for any invoice pertaining to FY 2017-18, then the Input Tax Credit has to be claimed atleast in the GSTR 3B to be filed for the month of September 2018. Input Tax Credit NOT claimed will be a direct cash loss to any assessee. This tool will easily and effortlessly identify invoices on which ITC is yet to be claimed.
Effective from the month of April 2019, it is expected that a new system of return filing will be implemented wherein Input Tax Credit will be eligible ONLY based on invoices uploaded by Supplier. In such a scenario, it is pertinent for business entities to identify their Suppliers who are correctly filing their GST returns and those Suppliers who are NOT filing / incorrectly filing their GST returns. This is also easily and effortlessly provided by this tool.
3. Working of GST ITC Recon
The tool does the reconciliation at invoice level. The tool takes into consideration the B2B, CDN and B2BA transactions uploaded by Suppliers. The invoices are reconciled and categorized into –
1. Matched Entries
a.) All Matched
b.) Inv No. Matched – Tax Matched
c.) Probable Matched
2. Mismatched Entries
a.) No. Matched – Tax Mismatch
b.) Mismatch GSTR 2A (ITC Not Claimed by Assessee)
c.) Mismatch GSTR 2 (Not Uploaded by Supplier)
d.) Invalid GSTIN or Date Format in Books
The Probable Matched entries as captured by the Reconciliation Tool has been highly lauded by reputed corporates. In this entire schema of matching entries based on Invoice No., there may be many instances where the Invoice No. has been captured in the books of accounts incorrectly. Example –
| Inv. No. given by Supplier | Inv. No. in Books |
| GST/14 | 14 |
| 101/17-18 | 101 |
| GST/1512/17-18 | 1512 |
| 15121718 | 15121710 |
These entries would be indicated as Probable Matched in Paul & Aravind’s GST – ITC Recon Tool.
The tool facilitates reconciliation for multiple months in a consolidated manner. The user can upload json files relating to any number of months and a consolidated csv file relating to all the months together. Note : It is advisable to reconcile for multiple months in a consolidated manner because there may be many practical situations where the invoice uploaded by Supplier in the month of the July 2017 is claimed by the recipient in any of the subsequent months.
The tool is completely FREE for reconciliation of data irrespective of the number of invoices.
Invoice wise download of reconciled data is charged at Rs.500/- per json file.
Frequently Asked Questions
How To Reconcile?
Step : 1 – Download GSTR 2A json file from GST portal.
Step : 2 – Prepare simple csv format of ITC claimed as per Books
Step : 3 – Upload json files and csv file in Paul & Aravind’s GST – ITC Recon Tool
Step : 4 – Once you have uploaded csv file, the entries with Invalid GSTIN and Invalid Date format will be available for download. You may choose to correct the csv file and upload again.
Step : 5 – Click on Match & Reconcile. The entire data will be reconciled at Invoice Level and an elaborate calculation will be made available to you for further process.
Can I Use GSTR 2A Excel File Instead Of JSON File?
No. There are chances that the user may alter or make changes in the the GSTR – 2A excel file. The ultimate objective of this tool is to reconcile with GSTN data i.e. uploaded by supplier and the ITC claimed in books. Therefore, the tool has been designed to accept only JSON file.
What Is The Format Of Csv File To Be Uploaded?
The format of the csv file can be downloaded from the link – Download csv format
The GSTIN of the Supplier has to be a valid GSTIN. It has to be carefully ensured that the Invoice Date is entered in the format dd-mm-yyyy . If there is a format mismatch, such entries will be immediately shown as Invalid Entries once the csv file is uploaded. The user can download the excel file free of cost to identify the entries with invalid GSTIN / date format. After correcting the errors, the user can reset the specific line in the tool and upload csv file again and proceed to Reconciliation.
How To Enter Credit Notes Issued By Supplier In The Csv File?
Each Credit Note issued by the Supplier corresponds to a particular Invoice No. For entering a Credit Note issued by the Supplier, it is important to enter the corresponding Invoice No. and Invoice Date of the original transaction in the csv file. The Taxable Value and Tax Amounts for the Credit Notes issued by Supplier have to be entered as negative values (minus) in the csv file.
Is There Any Rounding Off Limit In The Reconciliation Tool?
The tool does not carry on any rounding off process. However, any difference from -1 to +1 will be considered for All Matched and Inv No. Matched – Tax Matched. In respect of Probable Matched, a liberal matching has been provided to accept differences from -5 to +5.
What Further Process Should I Do After Reconciliation?
The user has to claim all unclaimed (and eligible) Input Tax Credits relating to FY 2017-18 before filing the return of September 2018. The user has to direct the purchasing department to follow-up with Suppliers for mismatches and invoices not uploaded suppliers.