As a small or medium business owner or startup founder, you are probably aware of the importance of complying with GST regulations. One of the requirements under GST is the timely filing of GSTR-3B returns. However, to do so correctly, it is essential to reconcile the details in the GSTR-2B statement with the books of accounts. In this article, we will discuss GSTR 2B reconciliation with books for preparation of GSTR 3B.
GSTR-2B is an auto-populated statement generated for all regular taxpayers who file GSTR-1, GSTR-3B, or GSTR-4 returns. The statement contains details of inward supplies made by registered persons that are auto-populated from the suppliers' GSTR-1 and GSTR-5 returns. It also includes details of ITC (Input Tax Credit) available to the taxpayer.
GSTR-3B is a self-declaration return that summarizes the details of outward supplies, inward supplies, and ITC for a given tax period. It is a simplified return that taxpayers need to file on a monthly basis. The due date of filing GSTR-3B is the 20th of the next month.
Under GST, GSTR-2B reconciliation with books is mandatory to prepare GSTR-3B returns. It is essential to ensure that the ITC claimed by the taxpayer in GSTR-3B matches the ITC available in the books of accounts. If there is a mismatch, it can lead to penalties, interest, and even legal action.
The following steps can help you reconcile GSTR-2B with books:
The first step is to download the GSTR-2B statement from the GST portal. The statement is available for download on the 12th of every month. You can log in to the GST portal and download the statement in Excel or JSON format.
The next step is to consolidate the inward supplies from the GSTR-2B statement with the books of accounts. You need to ensure that all the inward supplies have been recorded in the books of accounts and that there are no discrepancies.
The next step is to match the ITC available in the GSTR-2B statement with the ITC available in the books of accounts. You need to ensure that the ITC claimed in GSTR-3B matches the ITC available in the books of accounts.
If there is a mismatch between the ITC claimed in GSTR-3B and the ITC available in the books of accounts, you need to rectify it. You can do this by adjusting the ITC claimed in the subsequent month or by making the necessary entries in the books of accounts.
GSTR 2B reconciliation with books for preparation of GSTR 3B is an essential requirement under GST. It is necessary to ensure that the ITC claimed in GSTR-3B matches the ITC available in the books of accounts. By following the steps outlined in this article, you can ensure that your GSTR-3B returns are accurate and comply with GST regulations.
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