GSTR 2A Reconciliation has become increasingly important since the implementation of GST in 2017.
GSTR 2A is an autogenerated read-only form that is related to B2B purchase tax returns. The GSTR 2A captures information from your suppliers’ GSTR 1, 5, 6, 7 and 8. This information constitutes details about all the purchases you have made and the GST charged by them. On account of this, you are eligible to claim Input Tax Credit (ITC) against your suppliers.
WHAT IS GSTR 2A RECONCILIATION?
GSTR-2A Reconciliation helps to narrow down the most precise amount of ITC that a taxpayer is eligible to claim. This process helps to reduce the tax liability of a business.
WHY IS GSTR 2A RECONCILIATION IMPORTANT?
GSTR 2A Reconciliation is one of the most crucial processes in the compliance framework since it ensures that taxpayers do not have to pay the same taxes twice.
- The Input Tax Credit aids in reducing the cascading impact of taxes on business. Availing ITC on the basis of GSTR 2A has been made mandatory.
- Businesses can save a good amount of their working capital in the process by reconciliation.
- Reconciliation guarantees that credit is only claimed for the tax that has been paid to the supplier in full.
- It makes sure that no invoices are missed/recorded twice.
- If the supplier has failed to file Form GSTR – 1, you can send correspondence to the supplier to ensure that the discrepancies are resolved.
- Errors made by suppliers when providing details in GSTR-1 can be amended.
WHAT ARE THE CHALLENGES FACED DURING GSTR2A RECONCILIATION?
The reconciliation process poses its own challenges which make it practically a tedious and time-consuming task. You may face problems with regards to-
- Website- It can be hard to overcome the bugs and glitches sometimes.
- Manual check- When there is a discrepancy, you’d have to go back and forth from the website to your books and this will cost a huge chunk of your time.
- Errors- While reconciling large numbers of entries, you may fill in the wrong details or miss out on some invoices and this would double your work.
- Limited insight- There’s a lack of valuable filters that might help draw insights from the reports for running analysis.
These challenges call for an automated reconciliation solution that would save a lot of time and effort that goes into maintaining compliance each month.
HOW CAN REALBOOKS HELP?
RealBooks is an Easy and comprehensive cloud-based accounting software that allows you to manage Compliances efficiently while maintaining your Books of Accounts. With RealBooks, you get robust features and a supportive backend that caters almost all your accounting-inventory related requirements.
We aim to eliminate the cumbersome tasks of GSTR 2A reconciliation process and assists in increasing the productivity of your accounting department by automating the entire matching process. So, users won’t have to manually match the entries from the website with books; we do it for you!
- All you need to do is upload your GSTR 2A JSON into our system, sit back and relax, while we do the Auto-Matching of the entries.
- Based on the fulfilment of Matching criteria, we assign a particular status to the entries, as follows:
> Not found- This implies that the supplier hasn’t yet filled his GSTR 1
> Pending- This implies that the entry is available in the GST portal but isn’t reflected in your books.
> Matched- When the GSTIN, Invoice Number and Date and GST Amount as per books matches with that of Portal.
> Mismatched- This implies there is a mismatch in either Date or GST amount against an Invoice Number. In this case, we identify the discrepancy in a tabular format. This, again, eliminates the hassle of manually checking any miscalculations or omissions that have occurred in books.
- We provide add-on reports apart from the standard report that helps with the reconciling process and further analysis. These reports are all filtered from the standard report and provide specific insight such as the Party-wise report will show details regarding a particular party, All Amendment report will show the entries that have been amended and their matching status for the month, Unclaimed Input report which shows the input amount yet not claimed, and many more.
Days of troublesome GSTR2A Reconciliation are now over. With our smart matching techniques we make this task a single click process for you. Forget all your worries and switch to a new digital future. Choose RealBooks – the best cloud-based online accounting software and enjoy hassle-free data management. Switch to RealBooks!