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

GSTR 3B vs GSTR 2A

GSTR 3B and GSTR 2A are different forms for filing GST returns, requiring different reconciliation methods. Taxpayers use Form GSTR 3B to declare their GST liabilities. The due date for filing GSTR 3B, a monthly summary return, is the 20th of the month following the return period. Table 4 of Form GSTR 3B provides information on the Input Tax Credit (ITC) for which taxpayers may be eligible.

Meanwhile, Form GSTR 2A, the Goods and Services Tax Return, is automatically populated by your suppliers’ outgoing invoices. The information from your supplier’s Form GSTR 1, which reports monthly sales, is automatically transferred to GSTR 2A. Taxpayers should reconcile their GSTR 3B and GSTR 2A returns to identify any discrepancies in ITC claims under GST.

Overlooking the reconciliation process between GSTR 3B and GSTR 2A in Excel format can lead to errors in claiming ITC. Timely GSTR 3b vs 2a reconciliation in Excel format and before filing the GSTR 3B can help taxpayers avoid receiving show-cause notices from tax authorities. To understand the difference between GSTR 2A and GSTR 3B, taxpayers must ensure that the ITC amount displayed in GSTR 3B Table 4(a) aligns with the tax information reported in GSTR 2A.

Importance of GSTR-3B & GSTR-2A Reconciliation

GSTR-3B and GSTR-2A must be reconciled for the following reasons:

• Several taxpayers have received notices in the GST ASMT-10 Form from GST authorities asking them to reconcile the Input Tax Credit (ITC) claimed in GSTR 3B with GSTR 2A. Respond to avoid the taxpayer having to pay the difference. Those who attempt to claim ITC based on fraudulent invoices may also face the consequences.
• Proper reconciliation of ITC will ensure that the claimed tax credit matches the paid tax. 
• Invoices can only be noticed or recorded once, preventing accounting errors. If there are any mistakes in the information provided in GSTR 1 or GSTR 3B, they can be corrected.
• If GSTR 1 indicates that suppliers’ outgoing shipments must be adequately reported, suppliers can be notified of any discrepancies

Note: While filing a GSTR 9 yearly return, you must additionally reconcile ITCs for each month according to GSTR 3b vs GSTR 2a in Tables 6 and 8.

Reasons for GSTR 3B & GSTR 2A Non-reconciliation

The following are potential causes for discrepancies between GSTR 3B and GSTR 2A:

• IGST was paid by submitting an ITC claim.
• GST paid through the RCM was submitted for an input tax credit.
• TRAN-I and TRAN-II were submitted for transitional credit.
• Goods and services were received throughout the fiscal year, but ITC wasn’t claimed.

If an accompanying GSTR 1 has yet to be submitted for the same or ITC has not been claimed by the due date, then GSTR 2a and 3b reconciliation will be possible. If differences between GSTR 3B and GSTR 2A are discovered regarding the taxpayer’s excess ITC claim, the taxpayer will be responsible for reimbursing the difference plus interest. Reconciling and comparing records ensures taxpayers claim the right amount of ITC.

Advantages of GSTR 3B vs 2A report

• To begin comparing with GSTR 3B data, download GSTR 2A from the GST site at any point across months. After you’ve verified your GST login using an OTP, making further updates is as simple as clicking a button.
• When comparing ITC on GSTR 2A and GSTR 3B, account for any relevant field differences besides reverse charge.
• Check your PAN or GSTIN to see how your ITC stacks up against others.
• Identify the variations on a monthly or quarterly basis in an instant and respond accordingly.