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Match & Reconcile in GSTR-2

Describes how to match data received from GST Portal with purchase data & take appropriate actions.


IMPORTANT: Click on the button on the right to view the purchase reconciliation process with GSTR-2A.

Octa GST support purchase reconciliation in GSTR-2 but this is intended to support GSTR-2 return filing. GSTR-2 return filing is suspended for now.


In order to avoid ITC reversal because of any discrepancies in data reported by supplier and receiver, it is very important for you to carefully match the data reported by your suppliers with your own purchase documents. Matching is also very important to ensure that you don't miss any ITC claim.

Depending on the nature of business, the number of purchase documents can be anything from few to thousands or even more. Even in a single document, there are many details like Place of Supply, Date, Reverse Charge applicability, Total Value etc. All these details have to be examined carefully so that any incorrect data reporting can be avoided.

As the number of purchase document increases, it becomes infeasible to manually compare all these details. That's why Octa GST provides auto-matching functionality, which can compare thousands of documents with-in seconds and presents the results so that you can take appropriate actions on any differences.

Auto-Matching

IMPORTANT: Auto-matching and reconciliation needs both GSTR-2 data on GST Portal and Purchase data. Without entering both, it is not possible to match & reconcile.

To match the purchase data with GSTR-2 data received from GST Portal, simply:

  • Open the GSTR-2 page
  • Click on Prepare button
  • Click Match & Reconcile button
  • Click Next button under To be Reconciled row.

Octa GST will automatically match the purchase documents and show the match results. Depending on the details, there are five possible match results:

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Match: Purchase data matches with data reported by your supplier.

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Almost Match: Purchase data matches with data reported by your supplier but there are minor differences. By default, a difference of less than or equal to one rupee is considered as minor difference but this limit can be configured by you. These type of differences normally occur in case of rounding issues in different accounting softwares.

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Mismatch: Purchase data does not match with data reported by your supplier. This means there are important differences which should not be ignored.

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Unknown: Reported by supplier but not found in your purchase data. This means either you have missed this invoice/document in your purchase data or supplier has incorrectly reported that invoice/document.

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Missing: Present in your purchase data but it is not reported by your supplier. This normally means either your supplier has not filed his GSTR-1 return or missed this invoice/document in his return. It is very important to report these invoices/documents in your return so that you can claim ITC on these documents.

Note: When the background colour of above symbols is shown as grey, the meaning of match result is same but it indicates that your supplier has reported that invoice/document but has not filed his return.

Reconciliation

Octa GST supports bulk actions so that you can reconcile a large number of documents in few clicks only. At the same time, it provides fine controls so that you can analyse individual documents if needed and take appropriate actions. This design puts you in control without compromising the productivity.

Important: It is required to reconcile each document before you proceed to next steps in GSTR-2 preparation. If you don't reconcile a document, you cannot claim ITC on it and it will not be included in return data.

Depending on the match result, you have to take appropriate actions on each purchase document. Please note that all actions are not always available. Octa GST does not show the actions which are invalid and which might end up getting rejected by GST Portal.

It is important to correctly select the action on each document because each action has a different meaning and implication.

Accept: This action means you agree with the data reported by your supplier. If eligible, ITC amount will be as per data reported by your supplier.

Reject: This action indicates you don't agree with the sales transaction with that supplier. This action should only be used if you have not received the goods/services from supplier and invoice/document is meant for someone else.

Modify: Select this action if you have received the goods/services from supplier but you don't agree with data reported by your supplier. You should request your supplier to correct the data for all such invoices.

Keep Pending: This action indicates you would like to reconcile this invoice/document later. This normally happens when you have received the invoice from supplier but still haven't received the goods (which may still be in transit). In such cases, you may keep the invoice pending.

Add Missing: If you supplier hasn't filed the return or forgot to report your invoice in his return, you may mark such documents as Add Missing. It is important to ask your supplier to add these invoices because if these are not reported, ITC claimed by you may be reversed.


Continue reading: Octa GST Guide