2B ITC reconciliation

ITC / Input 280 views 1 replies
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42 Points Joined October 2024

Hi Sir/ Madam 

Suppose 10 Invoices are accounted in books on which ITC is eligible. On 10 Invoices is ITC 40,000

However only 8 invoices are appeared in 2B. On 8 Invoices ITC is 35000

In that case there will be mismatch in ITC reconciliation  between books and GSTR 2B (5,000)

How to handle this difference in month end/year end closing in books

Please advise

Thanks

 

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On 11 January 2025 at 13:37 Report
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Master in Accounts & high court Advocate
9060 Points Joined December 2011

A common issue in GST reconciliation! Handling ITC Mismatch To address the ₹5,000 mismatch in ITC reconciliation between books and GSTR 2B:

 1. *Verify the invoices*: Double-check the 10 invoices accounted in your books to ensure they are accurate and eligible for ITC.

 2. *Investigate missing invoices*: Identify the 2 missing invoices ( ₹5,000 ITC) that are not reflected in GSTR 2B. Check with your suppliers or vendors to confirm the invoices were indeed issued and dispatched.

3. *Check for errors in GSTR 2B*: Verify that there are no errors in GSTR 2B, such as incorrect invoice numbers, dates, or amounts.

 4. *Account for the mismatch*: In your books, create a provision or a suspense account to reflect the ₹5,000 ITC mismatch.

This will ensure that your financial statements accurately represent the ITC claimed. Month-End/Year-End Closing For month-end/year-end closing:

 1. *Reconcile ITC*: Reconcile the ITC claimed in your books with the ITC reflected in GSTR 2B. 2.

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On 11 January 2025 at 17:55


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