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Comparison of GSTR-3B vs GSTR-2A : Importance & Report

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GSTR-3B vs GSTR-2A is an important exercise that businesses must not miss out. It helps businesses claim the full Input tax credit (ITC) and also reverse any excess ITC claimed. In turn, the reconciliation before filing GSTR-3B will help avoid any potential demand notices from the tax authorities.

Form GSTR – 3B is a monthly summary return filed by the taxpayer by the 20th of the next month. Taxpayers are allowed to take the input tax credit (ITC) based on the details declared by the taxpayer in Table 4 of Form GSTR – 3B:

input tax credit

 

Form GSTR – 2A is an auto-populated form generated in the recipient’s login, covering all the outward supplies (Form GSTR – 1) declared by his suppliers.

GSTR-3B vs GSTR-2A

When the supplier files GSTR – 1 in any particular month disclosing his sales, the corresponding details are captured in GSTR – 2A of the recipient.

While the filing of Form GSTR – 2 has been kept in abeyance, it is still important under the GST framework for the taxpayers to reconcile the ITC claimed in Form GSTR – 3B and Form GSTR – 2A.

GSTR – 3B is a summary return. Hence, the amount of ITC available as disclosed in Table 4(a) must match with tax details disclosed in Form GSTR – 2A.

Importance for GSTR-3B vs GSTR-2A

It is important to reconcile Form GSTR – 3B and Form GSTR – 2A on account of the following reasons:

  • GST authorities have issued notices to a large number of taxpayers asking them to reconcile the ITC claimed in a self-declared summary return Form GSTR – 3B with the auto-generated Form GSTR – 2A. Such notices are issued in Form GST ASMT – 10. The taxpayer would be required to reply to such notices or pay the differential amount.
  • Tax evaders claiming ITC on the basis of fake invoices have also been penalised in the past.
  • Reconciliation ensures that credit is being claimed for the tax which has been actually paid to the supplier.
  • Ensures that no invoices have been missed/recorded more than once, etc.
  • In case the supplier has not recorded the outward supplies in Form GSTR – 1, communication can be sent out to the supplier to ensure that the discrepancies are corrected.
  • Errors committed while reporting details in GSTR-1 by suppliers or GSTR-3B by recipients can be rectified.

Use the GST Health check tool to identify the differences between the GSTR-3B and GSTR-2A.

Reconciliation at the time of filing of Annual return:

Even at the time of filing an Annual return in Form GSTR – 9, reconciliation of ITC as per GSTR – 3B and GSTR – 2A is required to be done in Table 6 and Table 8 across months.

Reasons for non-reconciliation of GSTR-2A vs 3B

The details disclosed in Form GSTR – 2A and Form GSTR – 3B may not reconcile on account of the following reasons:

  • The credit of IGST claimed on the import of goods
  • IGST Credit on the import of services
  • The credit of GST paid on reverse charge mechanism, etc.
  • Transitional credit claimed in TRAN – I and TRAN – II.
  • ITC for goods and services received in FY 2017 – 18 but availed in FY 2018 – 19.

In the cases mentioned above, the figures will not reconcile as no corresponding Form GSTR – 1 is filed by the supplier or the ITC is being claimed at a later date.

After Identifying mismatches by GSTR-2A vs GSTR-3B

After considering the situations mentioned above, if any discrepancies are found in Form GSTR – 2A and GSTR -3B leading to any excess ITC claimed by the recipient, the same must be paid by the taxpayer along with interest.

It is, therefore, necessary that this reconcile exercise is done on a regular basis to ensure that only bonafide input tax credit is claimed.

How can ClearTax GST help you?

 

ClearTax GST offers easy import and download of GST data for preparation of GST returns.

It provides various options for a user to ingest data to prepare the GSTR-1, GSTR-3B or GSTR-4 in under minutes. Options like excel ingestion or direct integration with ERP are available for importing sales or purchase data onto the ClearTax GST software.

The best part is, you have to import the sales data for GSTR-1 just once. Based on this, the software auto-populates the details into GSTR-3B in a click of a button. Thus, one can avoid errors and ensure 100% accuracy in reporting of data with minimal manual intervention.

ClearTax GST also provides useful insights under the REPORTS section so you can speed through the journey of GST compliance in a hassle-free way!

Try ClearTax Health Check  that offers an all-in-one report of the insights.

2a vs 3b

 

 

2a vs 3b

 

Alternatively, the report ofGSTR-3B vs GSTR-2A ITC Comparison Report’ helps you compare GSTR-2A with GSTR-3B.

gstr-3b vs gstr-2a

 

This report helps you compare the ITC reported in GSTR-3B by you with the ITC reflected on the GSTR-2A.

Further, you can compare the data month-wise or for every financial year. You can also compare data at GSTIN level or cumulatively at PAN level.

 

gstr-3b vs gstr-2a

Advantages of GSTR-3B vs 2A report

  • Download GSTR-2A anytime across months from the GST portal to start comparing with GSTR-3B data. Verify GST login once using OTP, and continue to easily update data in a click, anytime and anywhere.
  • Check the difference for every field such as B2B other than reverse charge to compare ITC between GSTR-2A and GSTR-3B.
  • ITC comparison at PAN and GSTIN level is available.
  • Know the differences instantly at a monthly level or at a quarterly level, to take further action.

How to get GSTR-3B vs GSTR-2A Report?

– Health check Report gives a complete picture of GSTR-3B vs GSTR-2A both at a summary and monthly levels. Follow these simple steps to get a complete GSTR-3B vs GSTR-2A ITC comparison report:

Step 1: Login to the Cleartax GST Account. Go to the ‘Reports’ section, click on ‘view’ against the ‘Health Check Report’.

2A vs 3B

 

 

Step 2: Click on ‘Generate Report’ button on the dashboard. You can find that the health check dashboard readily gives the filing status of the GST returns for the GSTIN at a glance.

2a vs 3b

 

Verify GSTN credentials using OTP. The OTP is sent to the registered mobile and email with GSTN.

 

2a vs 3b

Click on the ‘Download report in excel’ link to download the complete Health check report for your use and to be shared with the team.

Excel report gives the GSTR-3B vs GSTR-2A across different months in a financial year and at a summary level too! Share it across your team and use it to carry out fixes.

2a vs 3b

 

– You can alternatively download the ‘GSTR-3B vs GSTR-2A ITC Comparison Report’ from the report dashboard to get a comparison of data at a glance. Follow the steps as mentioned below:

1. Choose Financial Year

Select the financial year for which you want the report to be generated.

gstr-3b vs gstr-2a

2. Generate Report

If the GSTR-1 and GSTR-3B are both filed using Cleartax GST, then the report is displayed for your use. But if you have not used the software before, just click on the button ‘Refresh Data from GSTN’ appearing on the right-hand side of the report section’GSTIN level’. The yearly return data from GSTN will be fetched after verification via an OTP based on login credentials.

gstr-3b vs gstr-2a

3. Download Report

Notice the difference displayed in the reports section. Click on link ‘Download report as excel’ to use and share the report offline in excel form.

gstr-3b vs gstr-2aThe Health Check Report also gives you the following results:

Try out the GST health check tool and check your GSTIN’s health now!