Reconciliation facility for ITC shown in books of accounts and ITC as per GSTR-2A:
Government has introduced a facility that will allow taxpayers to reconcile amount of Input Tax Credit shown under GSTR-2A with amount availed by tax payers as input tax credit in Books of Accounts – specifically Purchase register.
Goods and Service Tax Network i.e. GST portal has enabled the reconciliation tool where in amount of Input Tax Credit shown under GSTR-2A can be reconciled with amount availed by tax payers as input tax credit i.e. credit taken as per purchase register.
Tax payers can download (Matching_Offline_Tool) zip file which will contain GSTR2B_Matching_Tool_v1.0.exe (Application), Purchase Register Excel Template and other user manual documents.
The following step will be required to be followed for reconciliation:
- Tax payers will be required to download the utility from GSTN Portal,
- Then Tax payers will be required to download auto-drafted input tax credit (ITC) statement – GSTR-2B from GSTN Portaland Tax payers will be required to open such file for review under offline tool downloaded under step-1
- The main thing which will require exercise from Tax payer’s end is, he will be required to maintain/prepare his business purchase registration in the CSV file downloaded in step-1 and then he will be required to Importing the purchase register in the Offline Tool for matching with GSTR-2B downloaded in step-2.
- After the above steps data will be ready for the comparison and for Comparing the auto-drafted ITC statement – GSTR-2B, downloaded from the portal and the purchase register; he will be required to use ‘Matching’ tab provided in the tool to identify documents which are fully matched, partially matched or not matched.
- This will allow Tax payers to reconcile the credit and to analysis the variances if any in most efficient manner. Such steps by government will increase more transparency and ease of doing business.