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Update as on 20th September 2019

As per the decision taken at the 37th GST Council Meeting, the new GST return system for all taxpayers and for all forms will be implemented from April 2020.

 

1. What is the Matching Tool under the New Return System?

The offline tool alongwith its prototype enables users to familiarise themselves with the workign capabilities of the new GST returns system. This tool has also been introduced to get feedback from the users. 

 

One of the features provided will be a Matching Tool which can be used by a taxpayer to match entries in the GST ANX-2 with the Purchase Register. The taxpayer can view and rectify differences between the Purchase Register and the data uploaded by the supplier.

 

2. When will the Matching Tool be available for use?

From July 2019 onwards, the new return system (i.e. GST ANX-1 & GST ANX-2) will be available on a trial basis for taxpayers. This trial will have no impact at the back-end on the tax liability or input tax credit of the taxpayer. 

 

3. How is the Matching Tool different from the present system of GSTR-2A vs Purchase Register?

GSTR-2A is an automatically generated return by the GST portal. When the supplier files his GSTR-1, the information is captured in GSTR-2A. The purchase register is maintained by the recipient. Thus, there could be cases of mismatch between the two and the taxpayer needs to do a reconciliation to figure out the differences and rectify the same. This process needs to be done manually.

 

However, under the New Return System, on upload of the purchase register, the Matching Tool will automatically compare the purchase register and data uploaded by the supplier. The recipient of supplies only needs to take action on the compared data as elaborated in detail below.

 

4. What are the different categories of Matches displayed to a user?

Below are the seven parameters on the basis of which the results will be populated: 

  1. GSTIN 
  2. Document type 
  3. Document number 
  4. Document date 
  5. Total taxable value 
  6. Total tax amount 
  7. Tax amount head wise 

 

There are six categories of matching results available to users, based on these parameters. 

 

Sr. No. Result Description
1 Exact Match If all of the above parameters match.
2 Partial Match When GSTIN and document type match but there is a mismatch in only one parameter among the below-listed parameters in GST ANX-2 and the Purchase Register:

  1. Document number 
  2. Document date 
  3. Total taxable value 
  4. Total tax amount 
  5. Tax amount head wise
3 Probable Match When there is a mismatch either in GSTIN or document type but the rest of the five parameters match then it will fall under this category.
4 Unmatched A record is said to be unmatched, if the following parameters match:  

  • GSTIN  
  • Document type  
  • Document number  
  • Document date 

BUT there is a mismatch on one or more of the following parameters, beyond the tolerance limit set:  

  • Total taxable value  
  • Total tax amount  
  • Tax amount head-wise  
  • Integrated tax  
  • Central tax  
  • State/UT tax  
  • CESS 

Hence, a matching score of 4/7 or 5/7 of the parameters.

5 In GST ANX-2 but not in Purchase Register All documents that are present in GST ANX-2 but could not be found in Purchase Register will be classified in this category.
6 In Purchase Register but not in GST ANX-2 All documents that are present in Purchase Register but could not be found in GST ANX-2 will be classified in this category.

 

5. How to use the Matching Tool in the GST ANX-2?

 

Note: The steps given below are applicable to both the offline tool and its prototype, unless mentioned otherwise. Certain functionalities, as mentioned below, is not be active on offline tool.

Step 1: Navigate and Login:

  • A user needs to navigate to https://demoofflinetool.gst.gov.in and click Proceed to Prototype, till such time it exists. Alternatively, user can download and install the offline tool.
  • Click on ‘Manage Profile’> ‘Add Profile’. 
  • A user then needs to input the GSTIN and click the ‘Add’ button. Once the Profile is created a user can modify the same.
  • After adding the profile select the GSTIN and then add Financial Year and Tax Period and then click on ‘Proceed’.  

matching tool (1)

 

Step 2: Open the Home Screen of the Offline Tool and fill details: 

A screen will pop-up with various functionalities available in the Offline Tool. The user shall click on ‘Take Action’ in order to take action on the documents in FORM GST ANX-2.

matching tool (2)

 

Step 3: Select the Matching Tool option: 

This tool enables the matching of entries between the GST ANX-2 and the purchase register.

matching tool (3)

Note: A user may download a template available on the GST Portal to maintain the purchase register in the specified Excel/CSV format. This will help the easy import of data and comparison of entries in the GST ANX-2.

 

Step 4: Import and view Purchase Register: 

Click on ‘Import Excel/CSV’ to import the purchase register. 

matching tool (4)

Once imported, click ‘View Purchase Register’ to view the imported details. A user can view the details of Purchase Register supplier-wise or document-wise.

matching tool (5)

Note: A user can also remove all the entries imported from the purchase register by clicking on ‘Remove Purchase Register’. But, currently, this feature is not available on the demo tool.

A user can view the displayed data in two ways:

If the user selects supplier-wise details: A user can view the document details of each supplier by clicking on a particular GSTIN such as invoice, debit notes, credit notes etc.

matching tool (6)

If the user selects document-wise details: A user can view individual document-wise details. 

matching tool (7)

In both the views, a user can customize his view column-wise, GSTIN-wise, sorting the results or by inputting keywords. A user can also search for a GSTIN as well as sort the results. However, these features are currently not available in the prototype.

 

Step 5: Click on ‘Back’ and then click on ‘Match’ on the purchase register screen to compare the entries of Purchase Register with the entries of GST ANX-2:

matching tool (8)

The matching results will be displayed table-wise.

image 1 to add

Each Match Type will be hyperlinked to view the summary in Tabular Form. Note: Currently, this feature is not available in the prototype.

image 2 to add

By clicking on “Match” or “Mismatch” user will be able to view the below screen, to take actions.

image 3 to add

 

Step 6: Click Refine Matching Result to refine matching results for tax amounts or document number (currently this feature is not functional):

matching tool (11)

  • A user can set a tolerance limit in terms of value for matching the tax amount between Rs 0 and Rs 10.
  • A user can also select Yes to approximation logic which will ignore the below differences:
  1. Special characters not present or
  2. Prefix or suffix as zero

 

Step 7: Click Apply and Rematch in order to get the results matched again based on the refined matching parameters and the tolerance limits selected:

matching tool (12)

It will show:

  • Match with Tolerance: A match where there is a match on all parameters after applying tolerance on total tax amount and individual tax amount.
  • Match with approximation: When there is a match on all parameters after applying approximation logic on document number and tolerance on total tax amount and individual tax amount.

Note: These features are not available in the offline tool as well as its prototype.

 

Step 8: View the results and click the relevant Match type hyperlink to view the details:

On clicking the hyperlink the details of matching results are displayed. The sample results can be seen for only the following three Match types: 

1. B1(1) Exact match: Below is the sample.

On clicking the Show Purchase Register details option, all the entries from Purchase Register are displayed. The record in a grey coloured row in Italic format is the one from Purchase Register.

matching tool (13)

2. B2(1) Partial match: Below is the sample.

The mismatches are highlighted in red. The record in a grey coloured rows are the ones from Purchase Register.

matching tool (14)

3. B2(3) Partial match with approximation: Below is the sample.

The record in a grey coloured row is the one from Purchase Register. 

matching tool (15)

 

Actions that can be taken on the matching tool:

After the population of matching results the user can take the following actions:

    1. Accept: If the auto-populated details in GST ANX-2 are correct, the user can accept the details and the accepted status will flow to suppliers GST ANX-1.  
    2. Reject: If the auto-populated details in GST ANX-2 are incorrect, the user can reject the details and the rejected status will flow to suppliers GST ANX-1. 
    3. Pending: If the details in GST ANX-2 are not confirmed by the user as yet and hence marked as Pending. Documents with the Pending status will continue to appear in GST ANX-2 in the next period.

Note: If the document has not been marked as accepted, rejected or pending it will be deemed to be accepted.

 

The implementation of new GST return will make the tedious task of filing GST Returns simpler. The demo will familiarize users with the new return system and get feedback on the same. Thus, making the final product user-friendly.

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