Reconciliation is a crucial step that you, as a taxpayer, need to undertake to avail ITC. For every month’s GST filing, you need to reconcile your purchase data with all your suppliers’ sales data that they have uploaded on GSTN. Upon reconciliation, if the data on both the ends match, claiming ITC can be a walk in the park. However, an account of mismatch can put you on an arduous journey, exploring through huge piles of invoices for one simple error.
So what can you do?
Well, to put it simply, the reconciliation can be attained in three 3 simple steps: Identify Mismatches, Review the same and Communicate with your vendors for rectification!!
To begin your venture into the world of a hassle-free reconciliation, the very first step is to identify the discrepancies occurring in your records and your suppliers’ sales data. Let’s analyse the above-mentioned scenario to identify possible discrepancies.
A. Mismatching Invoice No.
A discrepancy can occur if the invoice number in the data filed by your supplier to GSTN does not match with your records. This can happen if:
D. Missing Invoice
Finally, when all your data match, the last step is to ensure that the total number of inward invoices at your end match with the total number of invoices by the supplier. For instance, your record tallies to 134 invoices, however, the data reflected on form GSTR 2A shows 150 invoices.
A. Invoice data
Ensure no data was omitted, duplicated, or erred while recording the same in your accounts books. If you find any error, you can rectify the same while filing the subsequent GSTR 3B.
The discrepancies occurring due to mismatching ‘Place of supply’ can not be modified, thus leaving the taxpayer with two option:
The final stage in reconciliation is to communicate with your suppliers for all the discrepancies and ask for edits/changes if any. And as per the communication, you can accept the changes reflected in GSTR 2A (if the mismatch has been identified on your end) or reject the changes and let your supplier rectify the given mismatch.
However, going by the organizational structures and number of inward supplies, manually tracing the discrepancy across multiple invoices and further rectifying it with your vendors (probably spread across the country) can be a tedious task. So is there any better way to process your reconciliation without any hassle?
Reconciliation with IRIS Sapphire
Yes, courtesy to IRIS Sapphire, the preferred GST solution of top organizations across the country, reconciliation can be easier than you think. Built-in with advanced algorithm and fuzzy logic, IRIS Sapphire helps you reconcile all your data, with no-hassles guaranteed. It swiftly scans through your purchase and the suppliers’ sales data and points out the discrepancies. Furthermore, its smart assistance can help you to rectify the discrepancies (if any), on the go.
IRIS Sapphire Reconciliation has been built considering the requirements of various industries such as manufacturing, pharmaceuticals, automobiles etc. and has market tested logics to reconcile the buyer-supplier data across various parameters to reduce manual intervention. To schedule a demo, visit GST Reconciliation or write to firstname.lastname@example.org