Updated on: Jun 10th, 2021
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3 min read
ClearTax GST offers the most powerful and Advanced Reconciliation Tool that comes packed with 5X faster GST reconciliation and intelligence to auto-identify, match entries and assure 100% ITC claim.
GST reconciliation primarily involves matching the data uploaded by the suppliers with those of the recipient’s purchase data. This basically includes comparing the GSTR-2A auto-populated from suppliers data and the purchase data recorded by the receiver of the supplies. This matching concept also ensures that all the transactions which took place in a particular period have been recorded.
It is very important to reconcile GST returns data because :
Follow these steps for reconciliation in ClearTax GST using its advanced reconciliation tool:
Step 1: Log in to ClearTax GST and click on the ‘Reconciliation’ tab.
Step 2: After clicking on the reconciliation tab, the screen below appears. Select the financial year and the tax period you want to reconcile for.
Step 3: Download GSTR-2A from GSTN for all periods in one go.
Step 4: Import the purchase data either in ClearTax/government/custom templates.
Step 5: Then, click on ‘Start Reconciliation’, the process of the match and reconcile will start. A consolidated invoice data appears supplier wise in the next screen.
Here one can view and act on either of the following:
Click on ‘View all’ against :
All Suppliers – To view the complete list of invoices
Individual Suppliers – To view the list of the invoices issued by each supplier
Step 6: On clicking ‘View All’ appearing against all invoices, ‘Match & Reconcile’ window opens:
Here one can,
After matching and reconciling, the status of each and every invoice as reconciled or not is shown under the column ‘Recon Status’.
Step 7: Apply filter on ‘Reconciliation Status’ to view all the results appearing in the ‘Recon Status’ tab.
The following results will appear –
Following are the actions which can be taken once you filter the above results one-by-one –
Then, ClearTax GST compares and bifurcates invoices in four simple sections to check and reconcile:
Matched Invoices
Considering these are matched invoices (identical invoices), you can take the following actions on these invoices:
In case an invoice has to be de-linked, it will shift to missing in supplier data or missing in my data respectively.
Mismatch In Values
The following actions can be taken on the invoices with high tax difference:
Missing In My Data
These are the actions that can be taken in this case :
Missing In Supplier Data (Not In 2A)
These are the actions that can be taken in this case :
Further, click on ‘+link an invoice’ to link a particular unmatched invoice with the suggested invoices with the respective supplier.
ClearTax GST offers powerful reconciliation tool for faster GST matching and ITC claims. Reconciliation is crucial for avoiding ITC loss, correct tax declaration, and maximum credit claim. Steps to reconcile are clearly outlined, from downloading GSTR-2A to filtering results for matched and mismatched invoices. Various actions can be taken based on reconciliation results to ensure accurate GST data.