goods and service tax

Reconciliation of Goods & Services Tax (GST) data

What is the Reconciliation of Goods and services tax (GST) data?

  • Reconciliation of Goods and services tax (GST) data is not a new concept which is devised under the Goods & Services Tax (GST) law rather this was done in the earlier tax regimes as well.

  • Reconciliation under Goods and services tax is all about matching the data of the suppliers with that of the recipients and records all the transaction which has occurred during that financial period. 

  • Reconciliation also ensures that all the sales and purchase transactions between the supplier and the recipient are recorded and there is no mismatch in GST return filing.

Why Reconciliation of Goods and services tax (GST) data?

  • Input tax credit: Under the Goods and services tax (GST) regime, taxpayer can claim Input tax credit (ITC) only if the particular invoice receipt is being mentioned in GSTR-2A and this can be done with the proper reconciliation procedure in place.

  • Avoid duplication: To avoid any duplication in your Goods and services tax (GST) data, ensure correctness of the data and consolidate the values & make the declaration requires reconciliation of the Goods and services tax (GST) data.

Read Other Blogs: Impact of GST on Export of Goods and Services

How to go ahead with Goods and services tax (GST) Reconciliation?

  • Periodic GST return filing: Under this new Goods and services tax reconciliation process a taxpayers has to comply with all periodic GST return filing. Even if you have missed the due date of periodic GST return online, it is strongly recommended to file the same along with the interest or the late fees whichever is applicable. It is impossible to take the advantage of GST reconciliation & Input tax credit (ITC) until periodic GST return filing is done.
  • Annual GST Return filing (GSTR-9): Once you have filed all your periodic GST return online, then at the end of the financial year it is compulsory for every taxpayer to file Annual GST return online (GSTR-9). Filing GSTR-9 will make the process of GST reconciliation convenient. It will be easy to compare the periodic GST return online with annual GST return (GSTR-9).

Rectification (in case of any mismatch): In case of any mismatch between the sale & purchase account or periodic GST return online & annual GST return filing, a taxpayer must rectify the same at the earliest since it will create mismatch in the books of accounts. This mismatch will also have a cascading effect in the long run.

GSTR-1 & GSTR-3B: GSTR-1 is a monthly/quarterly return which is to be filed by every taxpayer. It reflects details related to outward supplies i.e. sales.


GSTR-3B is a monthly self-declaration form which is to be submitted by the registered dealer. A taxpayer must file the GSTR-3B for each GSTIN they possess.

Avoid penalties in case of short-payment of tax

Avoid any duplicity of invoices

Allow to claim ITC.

GSTR-1 & E-way bill: It is electronically generated bill for a specific consignment which helps in smooth movement of goods. Many times there are various mismatches which arise on account of E-way bill, some of them are specified below-

Job challan generated but it is not reflected in GST return.

Sale without IGST, E-way bill generated under IGST.

Non-generation of E-way bill below a threshold limit.

Tax invoice cancelled but E-way bill cannot be cancelled.

Prepare a debit/credit note in case of any mismatch in rate.

GSTR-2A & GSTR-3B: GSTR-2A is an automatically generated form from the seller side based on GSTR-1. So at the primary stage it reflects the congruity between your sales and the automatically generated form. When a seller files GSTR-1 it automatically records the data for GSTR-2A of the purchasing party.

Consistency in Books of accounts & GST return online: The congruity between the books of accounts and the GST return is crucial for claiming ITC. However, a taxpayer can only avail credit of taxes paid under reverse charge mechanism only if the goods and/or services are used or will be used for the purpose of business.

Effective communication: Communication is the key, especially amongst the vendors and customers. This will ultimately lead to uniform reporting in the GST return online. Chances of any mismatch/incorrect entries are minimal when there is synchronization between suppliers and recipient’s data. Identify non-compliant vendors, interact with them, and resolve the queries; this will help the recipients maximise ITC.

Read more: ALL YOU SHOULD KNOW ABOUT GST REGISTRATION

Conclusion: In case of any mismatch between GST & books of accounts or any delay is filing of GST returns might attract some penalty, which the taxpayer is compulsorily liable to pay. This amount is generally higher than the previous amount since it also includes a part of interest charged thereon. So it is always advisable to consider an advice from a Chartered accountant, Tax consultant and Legal expert.

CAONWEB providing a helping hand to all your business related queries. Whether it is about GST return filing, Income tax return, and company registration, our experts are there to take care of all your business needs.

GST registration

HOW HAS GST REVOLUTIONISED INDIA’S ECONOMY

With the dawn of 30th June, 2017, ended the earlier regime indirect taxation where we had different tax rates for every state. With the broad day sunlight of 01st July, 2017 started the era of GST in India. It not only removed the multiplicity of various indirect taxes prevailing in various states of the country but also made “One nation one tax” a reality. Any nationwide revolution will take a considerable amount of time for successful implementation of GST all over the country.

Government’s big push to make such a revolutionary tax reform since independence has brought in various non-taxpayers under the ambit of taxation. On one hand it seems to be a good indirect taxation amendment law while on the other hand some class also face some issues in terms of implementing GST software, GST registration procedure and also they are not able to align their structure as per new GST reform.

Yet GST positives outlaw its negatives. GST registration has a long term benefit of organizing our economic structure and strengthens the base of the Indian economy. While some of our businessmen are facing issues in implementing GST which is a short term issue.

Now we will further understand how GST has actually revolutionised Indian economy.

  1. Increase in tax base: Higher collection as compared to earlier tax regime and ease of trade are some benefits that come with increasing tax base. The indirect tax base has doubled since the introduction of GST some 2 years ago. The number of registered business under GST is doubled from 4.5 lakh to 8.16 lakh (approx.).

Read other blog: Impact of GST on Export of Goods and Services

  • Formalising Indian economy: Since we all are aware of the fact the unorganised business sector in India outnumber organised sector which is a grave cause of concern for the economy as a whole. GST registration will help to bring them in the organised sector.
  • Removal of multiple taxes: In the earlier tax regime, multiple numbers of taxes at central/state was a grave cause of concern since it created a lot of confusion among the potential tax payers leading to “tax evasion”. GST has introduced just 4 tax slab rates viz. (5%, 12%, 18% & 28%).

Related Blog – INCOME TAX EXEMPTIONS/DEDUCTIONS

  • Minimum government Maximum governance: GST will reduce the face to face interaction between the taxpayers and the tax authorities since under this new regime; everything is being taken to an electronic mode except under some cases a face to face interaction is required. This will make the whole process more transparent.
  • Ease of compliance: GST is taxpayer friendly regime, since it offers various categories of service for different class of taxpayers. For example: Small taxpayers can get rid of periodic GST Return filing up opting for Composition scheme which includes onetime lump-sum tax payment on the basis of estimated annual turnover.
  • Promote MSME: Small businesses that were earlier reluctant to start their business because of tax complications are now ready to establish Micro, small & medium enterprise (MSME) because of various benefits the government is offering to such industries under GST.
  • Buoyancy rate: Tax buoyancy is measure by which one could easily identify the effectiveness & efficiency of the revenue growth. After two years of GST there has been a growth of 22% (approx.) in the revenue and the buoyancy ratio of 1.20 which means that there is progressive revenue growth of rising tax to GDP ratio.
  • Prevent GST evasion: With minimal government interference and much transparent GST registration procedure, tax evasion has come down to minimum. Now, new businesses are not reluctant to get themselves registered because of the ease in GST registration procedure.

Source: https://www.caclubindia.com/articles/how-has-gst-revolutionized-india-s-economy-40099.asp

GST REGISTRATION

ALL YOU SHOULD KNOW ABOUT GST REGISTRATION

Nowadays we have information pouring form everywhere regarding the process, requirement, need, eligibility for GST Registration. We at CAONWEB have compiled all the important questions that arise while doing the GST Registration.

  • How do I apply for a GST number?

1.    The GST registration procedure is as follows:

2.    The whole process is online, one needs to go to the GST Login Portal

3.    Fill up the Part-A form and provide the required details such as PAN, mobile number and email address.

4.    The portal would send the OTP to verify the mobile number and email id.

5.    Once verified, a Temporary Reference Number (TRN) will be generated and sent on both the e-mail and mobile.

6.    Next Step is to fill Part-B of the GST registration form also attach the required documents using the received TRN after submitting the same the GST officer would verify the application and approve it within the stipulated time period.

7.    In case the GST officer does not approve the application and asks for more documents in support of claims made in the application, one needs to provide the required documents within seven working days.

8.    Once approved, the GST registration certificate will received on the registered email id.

Read more blog: 37th GST Council meeting: After restructuring Corporate tax structure now a big relief for GST Taxpayers.

  • What are the documents required for new GST registration?

A) Details Required – 

  •  Business Name
  • Email Id & Mobile Number of Proprietor/Authorized Signatory on which OTP will be sent by the Department.

B) Documents Required – 

9.    Photograph of Proprietor/Directors/Partners

10. PAN Card of Proprietor/Directors/Partners

11. Aadhar Card/Voter Id/Passport/ DL of Proprietor/Directors/Partners

12. Bank Statement of the Company/Partnership/firm

13.List of 5 Main Goods/ Product /Services

14.Utility bill -Electricity Bill/ Property Tax Receipt

15.Rent Agreement-If rented property

16.NOC of Principal Place of Business from the owner- If owned property  

17. Proof of Additional Place of Business, if any 

Read other blog: Impact of GST on Export of Goods and Services

  • Is GST registration free?

 There is no government fee, but there is professional fee involved for the GST registration procedure.

  • When GST registration is mandatory?

-Individuals registered under the previous tax regime (i.e., Excise, VAT, Service Tax etc.)

-You have an annual turnover limit above Rs.40 lakh for your intrastate business

-for business having an annual turnover of Rupees Ten Lakh located in any of the listed special states such as Assam, Jammu & Kashmir, Himachal Pradesh, etc.

-If you own an e-commerce business

-Persons making inter-state supply of goods

-If tax has been paid through reverse charge

-Non-resident liable to pay tax

Related Blog – INCOME TAX EXEMPTIONS/DEDUCTIONS

  • How much does it cost for GST registration?

GST registration is a tedious process. We provide the GST registration at competitive prices alongwith other CA services.

  • Is NOC required for GST registration?

Yes, NOC is a No Objection Certificate which needs to be signed by the owner of the property giving permission to use their address for GST registration procedure

  • Can I do GST registration myself?

It is advisable to take help from an expert as new GST registration requires specific HSN codes relating to the business, various important details, supporting documents, appropriate resolution if any query is raised by the department.

  • What is GSTIN?

GSTIN is an abbreviation for Goods and Service Tax Identification Number. It consists of 15 alphanumeric digits. It is generated once the whole GST procedure is completed.

Related Blog – Advantages of GST