Data Reconciliation in GSTR 2

What is GSTR 2?

GSTR 2 return signifies accrual of ITC (input Tax credit) from the inputs acquired at some point of the preceding month.

GSTR 2 is auto-populated from the GSTR-1s filed by way of the corresponding suppliers of the Taxpayer except for a few fields like imports, and purchases from unregistered suppliers.

GSTR 2 desires to be filed by the fifteenth of every month on the subject of components received at some point of the preceding month.

This is a solidified return. It should be recorded by the twentieth of consistently. It merges the accompanying subtle elements like Outward Supplies (Auto-Populated from GSTR-1), Inward Supplies (Auto-Populated from GSTR-2), ITC benefited, Tax Payable and Tax Paid (Using both Cash and ITC)

Importance of GSTR 2

GSTR-2 contains details of all the purchases transactions of a registered dealer for a month. It will also include purchases on which reverse charge applies.

The GSTR-2 filed by a registered dealer is used by the government to check with the sellers’ GSTR-1 for buyer seller reconciliation.

What is Data Reconciliation?

Data reconciliation is a technique that targets at correcting measurement errors that are due to any errors. From a statistical point of view the main assumption is that no systematic errors exist in the set of measurements, since they may bias the reconciliation results and reduce the robustness of the reconciliation.

In simple words it’s a process which Aims at checking errors that might’ve been left unnoticed. Now let’s finally talk about the Data Reconciliation in GSTR 2.

Data Reconciliation in GSTR 2

Data Reconciliation in GSTR 2 is basically between buyer seller or we can simply call it invoice matching. While in small companies or shops it can be easily done manually but in Big companies it can be very high time consuming in doing this manually so for that purpose we’ve some tools out there in the market that can easily do the same. These tools automatically detect if there’s any error in the invoices making it really less time consuming for the companies and also cost efficient as doing it manually would time consuming and will require more man power as well leading to a rise in the cost of doing the same.
GSTR 2 is what needs to be filed after finding errors in GSTR 2A and after Reconciliation the addition, modification and rejection can be done easily.

Simple solution to file GSTR 2 : Avalara TrustFile GST

Filing of GSTR-2 is a complex task, requiring amalgamation and reconciliation of sales and purchase data, but Avalara TrustFile GST is an automated automation solution that has simplified this process through the use of cloud technology:
– Retrieving Data: GSTR-2 requires businesses to submit accurate sales and purchase data each month. Avalara TrustFile GST can either directly extract this sales & purchase data from an established ERP or accounting system, or gives a business a mechanism to upload a simple CSV file.

– ITC issues: In the GSTR-2, it’s important to enter the ITC claim amount for each invoice or C/D notes individually. Avalara makes this very easy through GSTR 2 input template in the CSV file.

– Reconciliation issues: GSTR-2 requires accurate reconciliation of invoices between businesses, including all debit/credit notes. Avalara TrustFile offers an auto reconciliation feature and matching of invoices in GSTR2A.

Coupled with an additional advantage of prior GST experience (in Brazil and Canada) and Avalara’s experience in serving more than 20,000 clients globally, Avalara TrustFile GST is a cloud based solution that helps with complete automation of GST compliance. TrustFile GST provides a huge array of benefits, including timely compliance, report generation, comparison of reports, decision making, cost-effectiveness with reduced staff, technical and online support, and more.

Avalara is an experienced application service provider (ASP) and partner of authorized GST Suvidha Providers (GSPs). To understand how our cloud-based application Avalara TrustFile GST can help you with GST compliance automation, contact us through



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