CGST Rule – 36 now limits taxpayers from availing Input Tax Credits (ITC) if their suppliers have not reported the invoices in GSTR 2A. Recipient can take credit only up-to 20% above eligible ITC reflecting in GSTR 2A.
We see that many Taxpayers face issues while claiming their ITC. Such as:
At GSTZen, we aim at producing simpler solutions for all your GST needs. Here’s what we have come up with to help you stay complaint while filling Input Tax Credit (Table 4) of your GSTR 3B.
|Steps Taxpayers need to follow||How GSTZen will help|
|Download and Review GSTR 2A for the financial year||Through GSTZen, you can download full year GSTR 2A all at once|
|Reconcile Books (Purchase Register) with GSTR 2A to identify which invoices present in GSTR 2A are meant for the taxpayer and exclude the invoices that suppliers have uploaded by mistake.||In GSTZen’s Books vs GSTR 2A reconciliation, you can upload your Purchase Register through Excel or Tally. GSTZen Intelligent Matcher will compare all invoices between your Books and the Govt. Portal and match the invoices based on Invoice number, Invoice date, Tax value etc.|
|Identify eligible credit from invoices in GSTR 2A||GSTZen enables you to mark the invoices as Ineligible due to Personal Use, Exempted Use, Blocked Credit etc.|
|Ensure that you are not claiming credit for the same invoice twice||You can mark the invoice as Accepted and provide the GSTR 3B period in which you are claiming credit|
|Ensure that you are not claiming credit for goods that have not arrived before the filing date||You can mark invoice as Pending Accept and claim in a future period|
|Claim credit for old invoices that the supplier has uploaded late||You can mark the invoice as Accepted and provide the GSTR 3B period in which you are claiming credit|
|Alert vendors to invoices in your books that are not present in the Govt. Portal||GSTZen offers an Email to Suppliers option through which GSTZen will send an automated email to your suppliers requesting to upload their invoices in the Govt. Portal|
Through the GSTZen Advanced Purchase Reconciliation Dashboard, you can Take action on your GSTR 2A and Track status of your ITC all from GSTZen's Excel Report. This system enables you to be aware of your ITC compliance and take charge accordingly.
GSTZen ITC Reconciliation Dashboard
Here's an example of the excel output where you can choose the reconciliation status, ITC eligibility etc.
GSTZen ITC Reconciliation Excel
Invoice update - You can upload the filtered invoices directly to GSTZen server.
Credit/Debit Note upload - Upload Credit/Debit notes into GSTZen directly from the excel file.