Summary: Learn how to reconcile GSTR 2B in Tally Prime easily. This step-by-step guide will help you quickly navigate the process and get back to running your business.
Goods and Services Tax (GST) is an indirect tax that has revolutionized the taxation system in India. It has replaced numerous indirect taxes with a single, comprehensive tax structure. One of the crucial steps in GST compliance is how to reconcile GSTR-2B in Tally Prime.
TallyPrime, one of the most popular accounting software in India, has made it easier for businesses to reconcile their GSTR 2B statements. However, many businesses still struggle with reconciling their GSTR 2B due to its complexity and technicalities. We will provide you with a step-by-step guide on how to reconcile your GSTR-2B using Tally Prime effectively.
Table of Contents
What is GSTR-2B?
Before moving into the step-by-step details, let’s first understand what GSTR-2B is.
GSTR 2B is a document that provides a summary of all the purchases made by a registered business from its suppliers. This document is generated automatically by the Goods and Services Tax Network (GSTN) portal.
The purpose of GSTR 2B is to help businesses reconcile their purchase data with that of their suppliers, thereby ensuring transparency in transactions.
GSTR-2B provides taxpayers with a clear view of the Input Tax Credit (ITC). This information is derived from the documents filed by their suppliers. The generation of GSTR-2B takes place on the 14th day of the following month.
What are the Features of GSTR-2B?
GSTR-2B offers a range of features to assist taxpayers. Here are some of the features to look at:
- Can not be Changed: One of the standout features of GSTR-2B is its constant nature, meaning it remains the same and cannot be changed once it has been generated. The deadline for submitting invoices is the 13th of each month, so they can be included in the following month’s GSTR-2B statement.
- Partition of ITC: GSTR-2B offers ITC, which is the segregation of ITC into two parts- available and not available. This allows taxpayers to easily identify the amount of credit they can claim against their tax liability.
- Action Advisory: GSTR-2B has a handy “view advisory” feature. You can click on this feature anytime to gain valuable insights. It helps you understand recommended actions, clarify things, reduce confusion, and minimize mistakes.
- Import Information: It offers a consolidated report that contains important information about imports from Special Economic Zones, ICEGATE, and Customs units. It helps streamline and manage import activities within the tax system.
- Highly Convenient: This return offers taxpayers extra features for added convenience. Users can quickly view and save the document in Excel or PDF format on their devices. Additionally, the GST portal provides advanced search options to sort, filter, and hide data easily.
- Offers Detailed Information: GSTR 2B simplifies and enhances readability by providing detailed information about supplies. It allows taxpayers to easily access and download specific documents like debit and credit notes, invoices, etc. This feature helps users better understand their supply transactions and makes record-keeping easier.
How to View & Download GSTR-2B Form?
Downloading GSTR-2B form is pretty easy. It is available on the GST portal. To download this, you need to:
- Visit the official gst.gov website and log in using your username, password, and captcha.
- Navigate to the Services section and select Returns. Then, choose Returns Dashboard and proceed to File Returns. Look for the option labelled GSTR 2B and click on it.
- Pick the Financial Year or Period that you want to view or download. Click the Search button. Fill out the provided consent form and submit it.
- Afterward, you will be presented with the option to either View or Download the GSTR-2B. Choose the appropriate option based on whether you want to view the document or download it later.
- You can download the form in Excel or Jason format and keep a copy of it for future reference.
TallyPrime GST Reconciliation Features
TallyPrime is one of the most used accounting software that simplifies the process of managing business operations. The software has various features that make it easy to track sales, purchases, inventory, and other financial transactions. Some of the features are:
- GSTR 2A and 2B Reconciliation: The GST reconciliation process in TallyPrime is designed to be user-friendly. Simply upload your GSTR 2B/2A statements, and TallyPrime will automatically compare the data in your books with the statements. It generates a detailed summary of the reconciled transactions and promptly identifies any errors.
- Automatically Identify Unreconciled Transactions: TallyPrime makes it easy to spot unreconciled transactions in different categories. This helpful feature helps users identify discrepancies and take necessary actions to fix them.
- Find Invoices Not Uploaded by Your Suppliers: It easily detects invoices that haven’t been uploaded by your suppliers. It ensures that you can keep a record of invoices that are missing from your books, have inconsistencies in the return period, or remain unreconciled. This feature is especially useful for effectively managing input tax credits.
- Track Invoices with Errors: Sometimes, transaction dates may cause confusion and result in them being assigned to different return periods for you and the other party. You can simply adjust the ‘GST Return Effective Date’ in your records to resolve this issue. This adjustment ensures that the transaction is accurately reflected in the correct return period for both parties involved.
- Provides Reconciliation Summary: The reconciliation status summary gives a summary of unreconciled, reconciled, and unknown transactions. It provides an overview of the numbers involved, so you can easily understand the situation. You can further investigate each subsection to get more detailed information about the transactions.
How to Reconcile GSTR-2B in TallyPrime?
Reconciling GSTR-2B and GSTR-2A is easy and simple. All you have to do is download the statement from the GST portal and import it into TallyPrime. With the latest version of TallyPrime, the software will automatically reconcile GSTR-2B / 2A data. Here’s how to do it:
- Import the statement into TallyPrime
- TallyPrime will automatically reconcile the data
- Any entries that haven’t been reconciled will be highlighted
- TallyPrime will provide reasons for the discrepancies
How to Import GSTR 2B Data in TallyPrime?
Importing the GSTR-2B data is the first step of reconciliation process. This process captures all the relevant data from the portal with great precision and flexibility. To import data, you need to:
- Press Alt + O and select “Import”> “GST Returns.”
- The Import GST Returns screen will appear.
- Fill in the required information: GST Registration, Return Type (GSTR-2B), Path, and File.
- Press Ctrl + A to confirm and proceed.
- A summary will be displayed, showing the processed transactions, successful imports, and failed imports.
Return View of GST Details as per GSTR 2B Form
The Return View section serves as your personalized guide within the GSTN portal. It provides a comprehensive overview of every section and table found in Form GSTR-2B, allowing you to easily access and compare the values.
Once you import the GSTR-2B data, you can easily view the portal’s values alongside the corresponding values in your own records within the appropriate sections.
To improve visibility, the data from the portal will be highlighted in blue. When comparing data from the books and the portal, the blue values will be shown as zeros.
Can I import GSTR-2B in Tally Prime?
Yes, you can import GSTR-2B in Tally Prime by using the built-in functionality to import the file provided by the GST portal.
How to enable GSTR-2A reconciliation in Tally Prime?
To enable GSTR-2A reconciliation in Tally Prime, navigate to Gateway of Tally, click on “Display More Reports,” select “Statutory Reports,” then “GST Reports,” and finally, “GSTR-2”, and press Enter.
How to reconcile GSTR in Tally Prime?
To reconcile GSTR in Tally Prime, go to the GSTR Reconciliation screen, choose the relevant options, and follow the prompts to reconcile your GSTR data with Tally transactions.
How to export GSTR-2B from Tally Prime?
You can export GSTR-2B from Tally Prime by downloading it. Access the GSTR-2B Export feature and follow the steps to generate the file (Excel or Jason).
What is the difference between GSTR-2A and GSTR-2B reconciliation?
GSTR-2A is a read-only document showing all purchases, while GSTR-2B is a summarized view of the input tax credit available. GSTR-2B is generated by the GST portal and provides a specific period's information.
How to compare GSTR-2B with the Tally?
To compare or match GSTR-2B with Tally, import the GSTR-2B file into Tally Prime, and it will automatically scan and reconcile the data with your Tally transactions.
What is the importance of GSTR-2B reconciliation?
GSTR-2B reconciliation is important as it helps you ensure that the purchases reflected in GSTR-2B are correctly captured in your Tally records. It allows you to identify any discrepancies or missing transactions.
Why do you need to reconcile GSTR 2A and 2B?
Reconciling GSTR-2A and GSTR-2B is necessary to verify the accuracy of the transactions and claim the correct Input Tax Credit (ITC) while filing GST returns.
What is matching with GSTR 2B?
Matching with GSTR-2B means comparing the automatically generated GSTR-2B details with the taxpayer's Purchase Register using the Matching Offline tool. This process enables the taxpayer to generate a matching report. It ensures precise adherence to GST regulations and accuracy.
What is GSTR-2B in simple words?
GSTR-2B is a read-only auto-drafted statement generated by the GST portal containing details of inward supplies received from registered suppliers. It helps taxpayers reconcile their purchase data and verify the ITC claims.
Check our other articles on GSTR Filing