All purchases made by a business reflect in the GSTR-2A generated on the GST Portal. The details in this return are captured from the GSTR-1 filed by your sellers. A registered taxpayer is required to reconcile this GSTR-2A with their purchase invoices.
However, GSTR-2A can be downloaded from GST Portal only in JSON format. In this article, we will cover the following:
The CBIC has notified that taxpayers can claim input tax credit in the GSTR-3B return from February 2020 to August 2020, without applying the rule of capping provisional ITC claims at 10% of the eligible ITC as per GSTR-2A.While filing the GSTR-3B of September 2020, the taxpayers must cumulatively adjust ITC as per the above rule from February 2020.
Update as on 1st Jan 2020
The CBIC has revised the extent of provisional input tax credit claims from 20% to 10%.
Update as on 9th October 2019
The CBIC has notified that the input tax credit that can be availed by a registered person in respect of invoices or debit notes, will be restricted to 20% of of the eligible credit available in respect of invoices or debit notes as per details uploaded by the suppliers.
The conversion of JSON file into Excel to be able to match and reconcile invoices with GSTR-2A is not required if you are using the ClearTax GST Software. The matching and reconciling is inbuilt in the software that makes your return filing process easier.
1. When using the GST Portal, here is a step-by-step guide to convert JSON to Excel:
Step 1 – Login to the GST PortalStep 2 – Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’
Step 3 – Select the ‘Financial Year’ and ‘Return Filing Period’ from the drop-down
Step 4 – Click on ‘DOWNLOAD’ button under GSTR 2A.
Step 5 – Click on ‘GENERATE FILE’ and download the JSON file.
Step 6 – Upload the JSON file and convert it to Excel format using a JSON to Excel converter available online.
There you have it. Excel file ready for matching with purchase invoices.
2. Easy Matching and Reconciliation on ClearTax GST without any format change
You do not have to follow the six tedious steps mentioned above to convert JSON to Excel and then reconcile if you using the ClearTax GST Software. All you have to do is:
Download suppliers invoices from GSTN with a single click
Upload all your purchase invoices
ClearTax GST Software will automatically compare the data and prepare the mismatch report.
Once this is done the software will show you a summary of the matched status as shown below:
The possible outcomes are:
Matched – Invoices uploaded by you that match with the details uploaded by the suppliers can be seen here.
Mismatch in Values – When you and your supplier both have provided the invoice details in the GST return but there is a difference in date, taxable value, tax amount, total invoice amount.
Missing my Side OR Supplier Side -If the supplier has filed invoice and you have not included it in the return or vice-versa the mismatches are shown here. Also, any difference due to GSTIN mismatch, Invoice number mismatch is listed in this row.
You need to take appropriate action at this stage to avail ITC on the purchases:
Matched invoices – You need to accept the values to claim ITC in your GSTR 2 return.
Mismatched invoices – If you ‘Keep your values’ you will get provisional ITC. Full ITC is received if the Vendors values are accepted.
ITC will not be claimed in the return if no action is taken in the reconciliation process. You can also reset the reconciliation changes if you think you have made a mistake.
Here is a video of the entire matching and reconciliation process on ClearTax GST software:
This is how you can use ClearTax GST software to easily reconcile and match invoices without having to download and convert the JSON file.
ClearTax GST offers many such features that simplify your GST Billing and Filing process!
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