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

Neglecting to compare the reconciliation between GSTR 3B and GSTR 2A in an Excel format can adversely affect the Input Tax Credit (ITC) you claimed. It is important to verify the claimed ITC during the relevant period. Additionally, reconciling the GSTR-3B in Excel format before filing can help avoid show-cause notices from tax authorities. In this article, we will explain the difference between GSTR 2A and 3B to assist taxpayers in filing the correct form of GSTR.

GSTR-3B vs GSTR-2A

GSTR 2A and GSTR 3B are two different forms for GST return filing, and they require different methods of reconciliation. 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 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 GST ASMT-10 Form from GST authorities asking them to reconcile the Input Tax Credit (ITC) claimed in GSTR 3B with GSTR 2A. Failure to respond could result in 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.
• In case of any discrepancies, suppliers can be notified if GSTR 1 indicates that their outgoing shipments have not been adequately reported.

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 about the taxpayer’s excess claim of ITC, the taxpayer will be responsible for reimbursing the difference plus interest. Reconciling and comparing records regularly 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.