GSTR-2B and Purchase Register Reconciliation Software

If you need to reconcile the GSTR-2B with the Purchase Register, you should think about using a software solution. We’ll go over how GSTR-2B reconciliation software can help you streamline and improve the process.

'GSTR-2B' and 'Purchase Register' Reconciliation using GSTHero Software

GSTR-2B Reconciliation Software: How do we reconcile GSTR-2B with the Purchase Register?

When the GST was first implemented in 2017, the primary goal was to make it a progressive tax. Hence, the GSTR-2B details are covered in this article.

GSTR 2B is an automatically generated statement for regular taxpayers (monthly).

Similarly, the GST input tax credit (ITC) is one of the most beneficial and justified features that distinguishes the GST as a “progressive and “uniform” tax system.

To claim the ITC, taxpayers must rely heavily on GSTR-2B. As a result, in this comprehensive article, we will examine the critical aspects of the GSTR-2B Form.

We will also go over eligibility, GST rules, and GSTR 2B due dates in depth.

GSTR-2B is an ITC (input tax credit) statement that is automatically generated on the 12th of each month. The report is static and does not change in response to the vendors’ actions. Because GSTR-2B is based on GSTR-1, GSTR-5, and GSTR-6 and the ICEGATE system (Indian Customs Electronic Gateway), it does not include TDS and TCS information. Therefore, GSTR-2B reconciliation software is required for every business.

GSTR-2B Reconciliation with the Books of Accounts: Preparations

GSTR-2B reconciliation with the books of accounts is required before filing GSTR-3B and should be kept on file at all times. There may be additional conditions and restrictions for the availment and reversal of ITC under the GST Law, but this article is solely based on the reconciliation of GSTR-2B with the books. As a result, other legal provisions must also be considered.

Because GSTR-3B filing is a monthly exercise and GSTR-2B is also generated every month, it is always recommended to prepare a reconciliation with books of accounts to avoid any notices from the GST department, in the event of a mismatch, and GSTR-2B reconciliation software can help you with this.

Excessive use of ITC may result in the payment of interest and penalties to the government. In contrast, insufficient use of ITC may result in a loss to the taxpayer because eligible ITC could not be claimed within the prescribed timeline under the GST Law. As a result, proper reconciliations should be performed before filing GST returns.

Differentiation between Forms GSTR-2A and GSTR-2B

Even though Forms GSTR-2A and GSTR-2B contain similar information, they differ in several ways. The distinction between the two forms is summarised below.

A. Type of statement (dynamic/static):

Form GSTR-2A is a dynamic statement. As a result, the details of inward supplies for input tax credit will be updated on a regular basis.

Form GSTR-2B, on the other hand, is a static statement. Therefore, the information will be updated periodically.

B. Basis for reflection of details:

In the case of Form GSTR-2A, the details of inward supplies will be reflected in the statement in real-time.

In other words, the information will be updated when the supplier provides information about outward supplies in Form GSTR-1 or through the Invoice Furnishing Facility (i.e., IFF).

For example, the registered person should have declared some supplies when filing Form GSTR-1 for January 2022. Instead, the registered person reported the missing supplies when filing Form GSTR-1 for February 2022. Similarly, the details of such missed supplies will be reflected in Form GSTR-2A in February 2022.

C. Bifurcation of eligible and ineligible Input Tax Credit:

Form GSTR-2A does not allow for separating eligible and ineligible input tax credits. Form GSTR-2B, on the other hand, briefly distinguishes between eligible and ineligible input tax credits.

D. Data source:

Form GSTR-2A collects/compiles data based on returns filed by suppliers in Forms GSTR-1, GSTR-5, GSTR-6, GSTR-7, and GSTR-8.

Form GSTR-2B, on the other hand, aggregates information from the supplier’s Forms GSTR-1, GSTR-5, and GSTR-6.

Reconciliation of GSTR-2B and Books

GSTR-2B is critical in facilitating ITC reconciliation. As previously stated, GSTR-2B reconciliation software is required for claiming the maximum and eligible Input Tax Credit.

Details of your purchases will appear in your GSTR-2B ONLY if your Supplier has filed his GSTR-1 correctly and on time for the purchase.

Businesses must review their GSTR-2B form before claiming the GST Input Tax Credit for the month, as GSTR-2B provides final confirmation of the eligible ITC.

But how are you going to reconcile your GSTR-2B?

i) The best way to identify gaps in your GSTR-2B statement is to compare it to your Purchase Records or Books of Accounts.

ii) This is the most effective method for determining which transactions are missing ITC from your GSTR-2B statement.

iii) For smaller volumes of transactions, manual reconciliation is an option. But what if the transaction volume is significant?

iv) The large volume of transactions will undoubtedly be a problem, and the clerical team will become engrossed in these reconciliations, wasting valuable business time and resources.

What are the advantages of using Software for GSTR-2B reconciliation?

The following are some of the most significant advantages of GSTR-2B reconciliation using a software:

i) Determine who your GST-defaulting suppliers are;

ii) Notify the GST non-filers of the mismatch and request that they file their GSTR-1;

iii) Avoiding ineligible ITC claims, which may result in a GST audit by the department;

iv) Minimal human intervention is required to eliminate errors;

v) Reports on detailed reconciliation; and

vi) You fully comply with the ever-changing GST laws when you use a GST Suvidha Provider like GSTHero.


GSTR-2B is the most important document to claim ITC for a month. As a result, businesses must promptly notify defaulting suppliers and request that they file their GSTR-1 returns.

In subsequent articles, we will discuss more essential details about GSTR-2B and the GST Input Tax Credit.

Try GSTHero GSTR-2B Reconciliation Software for 100% accurate reports for internal and departmental audits.

Stay aware; stay ahead!

Author Bio: GSTHero
GSTHero India is a provider of GST filing and E-Way Bill generation software. GSTHero, an authorised GST Suvidha Provider, assists businesses and tax practitioners with GST Compliance, E-Invoicing Integrated Solution, and E-Way Bill Automation.
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