GST2A Reconciliation

 Documentation for GSTR2A reconciliation for India’s leading Retail Chain

Reason for the development of the module:

 

The module has been developed for chartered accountants and end clients to help resolve the GSTR2A reconciliation issues.

Why is this module required?

·         The data been handled for GSTR2A reconciliation can be very large. With excel handling of the data could be very cumbersome

·         There are a large number of conditions by which GSTR2 might not make a match between the client purchase invoices and the client buyer sales invoices. The reasons for the variations could be with regards to document number, document date, Recepient GSTIN, buyer GSTIN and even the transaction amounts. In order to handle the mismatches between these types of invoices there are a large number of join conditions involved.

·         The developed solution can be a standalone module for Chartered accountants not involving the complete GST extraction and services from various data providers

·         Benefits with regards to ERPs:

o   The solution is based on Azure cloud. It uses the high processing power of Azure cloud for faster data processing

o   The solution offers web and mobile access for GSTR2A reconciliation

o   The client can also share with the vendors using whatsapp and email any discrepancy details

o   The development team is bringing with itself automated extractors from Tally and other ERPs.

o   The development team is bringing with itself specialized Chartered  accountants with experience is GST 2A reconciliation(https://www.linkedin.com/in/sharad-maheshwari-688b733/)

o   The data should be secure(on Microsoft Azure cloud) and there should be facility for each company to see its own data(row level security)

o   The business logic should be auditable.

 

The following are the steps followed for the GST2A Audit process:

 For the GSTR2 A reconciliation the sample client is using the following composite keys

·         Document number

·         Document date

·         Supplier GSTIN

·         Company GSTIN

·         Taxable Amount

·         Total GST amount

 

There can be some variations in the Taxable amount and the total GST amount. That logic has to be incorporated into the final audit report.

Supplier GSTIN and Company GSTIN have to match. However there can be discrepancies in Document Number and document date because of different ERP systems.

The client’s logic entailed that match shall include all 6 criteria. Alternatively, if 4(supplier GSTIN, Company GSTIN, taxable amount and Total GST amount) criteria match but there is discrepancy in the remaining 2 criteria (document number an document date) then it should still be considered matched.

Methodology of the development of the solution:

·         The solution was developed in Powerbi for the following reasons:

o   Consolidate the data from different data sources

o   Incorporate the client logic

o   Easy and secure viewing through the Azure portal

o   Standardization of the formulae.

o   Reduce the handling times for GSTR2A reconciliation with large and varied data.

o   No row limitations as far as the processing of the data is concerned

Attached is the methodology for the same:

1.       Find the exact match for the entries:

1.       Find those entries where the client has filed the returns but the returns are not in GST audit-sample code

3.       Find those entries where the client’s customer has filed the data but client has not filed the data

3.       Find those entries where the client’s customer has filed the data but client has not filed the data

 3.) Find those entries where the document number is not matching:

4.) Document date mismatch data

Once  the above analysis has been done then specific matching criteria can also be done by GST number, document number and document date

Other reports: Based on the analysis after steps 1 ,2 and 3 it is possible to divide the data to find the exact mismatch

Custom variations based on Total tax amount and total amount are also possible. A sample case study is attached herewith:

4.       Match  the ERP and the GST data . The ERP data shall come from any ERP(including Tally). The GST data shall come from the GST portal as part of the GSTR2 reconciliation).

1.       Exclude the entries not in the exact match

5.       Extract those entries that have matching Taxable amount, Total amount, recipient GSTIN, Supplier GSTIN but not matching document number and document date

5.       Extract those entries that have matching Taxable amount, Total amount, recipient GSTIN, Supplier GSTIN but not matching document number and document date

Please contact the following for automating your GST 2A audit process

 

Apoorv Chaturvedi(Phone: +91-8802466356, email: support@turbodatatool.com, support@mndatasolutions.com)

Website: https://mn-business-intelligence-india.business.site/