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?

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.
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.
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.
Maintain Audit Trail for Adjustments
- Maintain detailed records of mismatched invoices and follow-up communications.
- This will help during GST audits or assessments.
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.
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:

Step	Action
1	Reconcile Tally purchase invoices with GSTR-2B data
2	Identify missing/unmatched invoices and create a separate ledger for ITC pending cases
3	Claim ITC only on invoices appearing in GSTR-2B
4	Follow up with suppliers for correction of missing invoices
5	Adjust unmatched ITC in Tally as per supplier confirmation or subsequent periods
6	Maintain documentation for audit trails