Every business that is registered via the GST portal in India, which is the goods service tax, is provided with the GSTR-2A document. This is a purchase-related document that is auto-generated when the seller uploads 5 forms and GSTR-1, and it describes the transactions made by a business in a particular month in the invoice.
How is GSTR-2A generated?
Once you fill the GSTR-1, GSTR-5, GSTR-6, GSTR-7, AND GSTR-8 forms and submit them on the GST portal, your GSTR-2A is auto-populated. Your GSTR-2A contains multiple details, including the taxpayer’s name, their GSTIN, invoice information on inward supply, IDS credits earned, etc., and is divided in Part A, B, and C. Part C, however, is applicable for companies that are engaging TDS transactions or are selling online i.e., e-commerce platform.
This is a read-only document that notifies the business about the invoice details made by their seller, and you need to go online, to the government GST site, to fill the form for the GSTR-2A reconciliation process.
Why is the GSTR-2A reconciliation process important?
To reconcile GST, the data uploaded by the suppliers have to be matched with the receipts that have been uploaded on the portal by the respective recipients. It is of utmost importance to reconcile because:
- According to the new rules, taxpayers can now claim their ITC only if that particular invoice is a part of their GSTR-2A.
- When declaring good service tax i.e., GST liability, vendors realize that the credit has not been availed by the purchaser in their returns. Here, if the data isn’t reconciled on time, the vendor could lose out on their ITC claim.
- The GSTR-2A reconciliation process will ensure that either party does not have to bear any ITC loss.
- Taxpayers need to consolidate their invoices and reconcile GST as that will help in avoiding duplication and help maximize input taxes.
How to view GSTR-2A?
Follow these few quick steps to know how to view this return form:
- Head to the official GST website (government site).
- Once you log in, find the ‘Services’ tab on the dashboard.
- Click on ‘Returns’ and then select the ‘Dashboard returns’ option.
- You will now be able to see the ‘File Returns’ page, where you can start filling in your return filing period and your financial year and then begin your search.
- Under GST download, click on the ’View’ option.
- Now you’ll be able to see GSTR-2A auto-drafted details page.
It is very important for both the buyers and the supplier to reconcile their data on time, to ensure smooth ITC filing and helps with bookkeeping too. If you need to know more about the GSTR-2A reconciliation process or understand how it will help you with claiming your ITC, then head to Finserv MARKETS. You will find exhaustive information and income tax, GST, and other related topics, and answers to all your doubts!