Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Three reconciliations
A clean GST position rests on three monthly checks: turnover in the books vs GSTR-1/3B; output tax in the books vs tax paid in 3B; and input tax credit in the books vs GSTR-2B. Doing these every month, rather than at year-end, keeps differences small and explainable.
Common reasons for differences
Most gaps are timing or classification: credit/debit notes booked in a different period, advances, income that isn’t a GST supply (like interest or dividends), ITC claimed when it appears in 2B vs when booked, and RCM entries. Tag each difference with a reason so it can be carried into GSTR-9C. Keep the working papers for audit.
A worked example
Example: the books show ₹50 lakh more turnover than GSTR-1 — on checking, ₹30 lakh is non-GST interest income and ₹20 lakh is invoices reported in the next month. Both are documented as reconciling items, and nothing is actually under-reported. Building this discipline monthly makes the annual return and any GST audit straightforward. Our team can run your GST-to-books reconciliation.