GSTR 2B/3B Reconciliation
GSTR 2B/3B Reconciliation - User Guide
1. Introduction âī¸
The GSTR 2B/3B Reconciliation (Reco) module is a specialized audit tool designed to ensure that the Input Tax Credit (ITC) claimed in the books matches the credit shown in the government portal. This process is critical for preventing GST notices and interest penalties due to misaligned credit claims.
Purpose of this Report:
- ITC Verification: Confirm that your vendors have filed their GSTR-1 and that the credit is visible in your GSTR-2B.
- Portal Alignment: Link portal dates (2B/3B) to internal purchase invoices.
- Identify Missing Credits: Locate bills entered in the system but missing from the portal, or vice-versa.
- Statutory Compliance: Automated validation for “Eligible” vs. “Ineligible” ITC.
This module is restricted to GST-Registered Units and is primarily used by Tax Accountants and Compliance Officers.
2. The Reconciliation Workflow đ
The system uses a semi-automated “Export-Import” loop to reconcile thousands of transactions efficiently.
Step 1: Download Internal Baseline
- Download the GSTR Reco report (Option: All) for your desired month and unit.
- This file contains all your internal purchase bills and debit/credit notes.
Step 2: Extract Portal Data
- Download your GSTR-2B or 3B data from the GST Portal in Excel format.
Step 3: The Upload Process âŦī¸
Navigate to the Upload section from the Reco screen.
- GSTR-2B Reco: Upload a file specifically named
ShownIn2B.xlsx.- Requirement: The last column must be named
Shown In 2B.
- Requirement: The last column must be named
- GSTR-3B Reco: Upload a file specifically named
AvailedIn3B.xlsx.- Requirement: The last column must be named
Availed In 3B.
- Requirement: The last column must be named
Step 4: Automated Matching & Database Update
The system matches the uploaded file against internal records using the DocId.
- Success: The system automatically updates the internal
Reconciliation Datein the database. - Failure: If a record cannot be matched (e.g., incorrect Bill ID or Number), the system will provide an error file for your review.
3. Report Types & Filters đ
| Report Type | Purpose |
|---|---|
| Option: All | Provides a comprehensive list of all taxable purchase documents, filtered by the internal entry date. |
| Option: Unreconciled | The Action List. Shows only documents that have NOT yet been matched with the portal data (Missing 2B/3B Date). |
| 2B Reco | Focuses on inward supplies reported by your vendors. |
| 3B Reco | Focuses on the set-off and actual availment of credit in your monthly returns. |
4. Understanding Error Codes â ī¸
If an upload fails or contains errors, the feedback file will include the following codes:
- Code A: Invalid Document ID or Bill Number (The document does not exist in the system).
- Code E: Reconciliation Date is in the future (Logical date error).
- Code F: Invalid Debit/Credit Note ID (DNCN reference mismatch).
5. Source Transactions đ
The reconciliation engine integrates data from:
- Purchase Bills: Invoices registered in the system.
- Debit/Credit Notes: Adjustments for returns and price corrections.
- Party Master: Verification of Vendor GSTINs and registration status.
6. Best Practices / Tips đĄ
- Batch Reconciliation: Perform GSTR-2B reconciliation monthly after the 14th (once the government generates the final 2B).
- Strict File Naming: The upload will fail if your file isn’t named exactly
ShownIn2B.xlsxorAvailedIn3B.xlsx. Do not add dates or prefixes to the name. - Unreconciled Audit: At the end of the quarter, run the Unreconciled 2B Reco and follow up with vendors whose invoices are missing from the portal to prevent ITC loss.
- Check Eligibility: Ensure the
Input Tax Credit Namecolumn shows “Is Eligible” for all significant claims. If it shows “Not Eligible”, the credit will be blocked internally.