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 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.
GSTR 3B and GSTR 2A must be reconciled for the following reasons:
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.
The following are potential causes for discrepancies between GSTR 3B and GSTR 2A:
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.