GST Reconciliation
GST reconciliation involves matching data of purchase and
sales between different returns and purchase and sales registers. Under GST,
reconciliation helps taxpayers know if taxes are excess/short paid or not paid
at all.
Kinds of GST Reconciliation
· Inward
supplies and GSTR2A Reconciliation.
· GSTR
3B and the GSTR 2A Reconciliation.
· GSTR
3B and GSTR 1 Reconciliation.
These are some of the major reasons why GST
reconciliation is vital:
· To
validate data through the reconciliation of different GST returns
· To
keep a tab on the duplicity of data
· To
issue file amendments or CDNs if there is a mismatch because of duplicity of
data or human error
· To
claim accurate Input Tax Credit (ITC) for invoices raised in the previous
financial year