GSTR-2B ITC mismatched with TALLY Accounts ... how to adjust ???

Hi Sujit,

The mismatch between ITC shown in GSTR-2B and the raw material purchase entries in Tally is a common issue many face. Here’s how you can approach and adjust this discrepancy:

Why does ITC mismatch happen?

• GSTR-2B is auto-generated based on suppliers' GSTR-1 returns and may have timing differences.

• Supplier might have delayed or not filed their returns properly.

• Invoice might be missing, wrongly reported, or partially reported by the supplier.

• Differences in invoice dates, invoice numbers, or GSTIN between your purchase book and suppliers’ returns.

• Stock receipt date and invoice date may differ.

How to handle this mismatch in Tally and GST filing?

1. Reconcile Purchase Invoices with GSTR-2B

   • Use a reconciliation tool or manual matching to identify invoices missing in GSTR-2B.

   • Check with suppliers if they have filed their returns correctly.

   • Follow up with suppliers to correct or file pending returns.

2. Maintain Separate Ledger for Unmatched ITC

   • Create a ledger named something like “ITC Pending Reconciliation” in Tally.

   • For purchase invoices not appearing in GSTR-2B (thus ITC not available), book these purchases as normal expenses without ITC or classify separately.

   • Avoid claiming ITC on such invoices until supplier rectifies.

3. Adjust ITC Only on Verified Invoices

   • Match only the verified and reflected invoices in GSTR-2B for claiming ITC.

   • In Tally, use the purchase ledger linked to GST for these invoices.

   • For unmatched invoices, wait for supplier confirmation or use manual adjustments in subsequent periods.

4. Maintain Audit Trail for Adjustments

   • Maintain detailed records of mismatched invoices and follow-up communications.

   • This will help during GST audits or assessments.

5. Use Tally GST Reconciliation Features or External Tools

   • Latest Tally versions have GSTR-2B import and reconciliation tools.

   • Use these tools to import GSTR-2B data and match with your purchase ledger.

   • This makes identification of mismatches easier and reduces errors.

6. Regular Follow-up with Suppliers

   • Encourage suppliers to file accurate returns on time.

   • Sometimes, you may have to reverse ITC claimed on mismatched invoices and re-claim after corrections.

Summary of Steps: