GST is a complex law requiring lots of compliance. Previously, businesses were required to face so many under various laws.

Now, since most of them are abolished and integrated into one single law i.e., GST, compliances are more under GST.

All the transactions taking place into a business is entangled with GST. And this is the reason, even small mistake in any transaction, whether or not because of GST can make a difference.

This is the reason; reconciliation is a need in every area on accounting.

In this article, we are going to see the difficulties that are faced in an organisation while reconciling GST.

But before that we must understand the term reconciliation.

What is Reconciliation?

  • To reconcile means to compare two sets of data. One of them is source data, and the another one is the data that is entered using such source data.
  • The purpose of doing reconciliation is to check that there is no difference between both the sets of data.
  • Also, to find out that there is no error in any of the data. Because even a small mistake may lead to big difference and series of problem will occur.
  • Therefore, reconciliation is important before any return or finalisation.

Various types of Reconciliation under GST

Reconciliation of Sales Register with GSTR-1 where we have to check whether all the sales details are correctly entered.

Reconciliation of Sales Register with GSTR-3B where we have to check that whether total sales and taxes are accurate or not.

Reconciliation of Purchase Register with GSTR-2A/2B where we check purchase details that are in our books with that of purchase details entered by the suppliers.

Reconciliation of Purchase Register with GSTR-3B where we check details of purchase and total purchase details.

Reconciliation of GSTR-1 with GSTR-3B where we check the sales details entered invoice by invoice and total in the return.

Reconciliation of GSTR-2A/2B with GSTR-3B where we check the purchase details entered invoice by invoice by every supplier and total in the return.

Reconciliation of GSTR-1 with E-invoices. All the e-invoices generated gets reflected under GSTR-1

Reconciliation of GSTR-1 with E-way bill. E-way bills are generated when there is movement of goods involved in any transaction.

Apart from the above-mentioned reconciliations, there are various other reconciliations that are needed to be done.

So, it is obvious that when there are so many reconciliations, errors are bound to happen.

Errors faced during GST reconciliation

Missing invoice

It is possible that while filing any return, or even at the time of data entry, some invoice remains unentered. While reconciling, such invoice might come to the notice of the person checking it.


When same entry is entered twice, it is known as error of duplication. We need to check that there is no such clerical mistake taken place.

Date / Period

If the entry is made on an incorrect date which does not match with invoice date, then the entry will get added to that period and will be shown in that period’s return.

Incorrect invoice number

Sometimes the invoice number at both the places do not match, while doing reconciliation, it may come to the notice of person checking it. Invoice number play an important role under GST because under GST, invoice-wise details needed to be entered.

Incorrect GSTIN of Customer

Details are uploaded invoice by invoice under GST. Customer will get the credit of GST paid by them only after uploading correct details his supplier. While reconciling, we can come to know

Incorrect Amounts

In every single invoice, there are multiple amounts involved such as, Net Taxable amount, GST amount, Total amount etc., so if any single amount does not match, problem will arise and to resolve such problem, one has to search that where the problem is.

Incorrect Rate GST

Different goods have different rates, and rates are required to be correctly mentioned, otherwise, if correct rate is not mentioned, more or less GST will get imposed. And it is not good to pay more or less GST.

Apart from this there are so many difficulties

Difficulties Faced During GST reconciliation:

Non-availability of efficient staff

Employees are the backbone of every organisation. Appropriate staff should be placed at appropriate position. Person making invoice, entering data into enterprises system, filing returns etc. all the staff should perform their duties correctly. In case, an organisation is not having appropriate staff, a greater number of errors will take place and correcting them will not be easy. Therefore, human resource department is given very importance because appointing correct person at correct position is very important.

Misplacement of physical invoices

Documentation plays a vital role in accounting. Preparing correct document and preserving it at a safe place is duty of an organisation. It is possible that sometimes, physical invoices get misplaced. In that case, it will not be possible to reconcile that whether correct document is entered or not.

Mismatch of Books and Returns

Books and returns must tally. Sometimes, it is possible that at the time of reconciliation, some previous periods figure in books and return do not match. In that case we need to first correct and match the mistakes and then move ahead.

Incorrectly entered data

If any particular type of data is entered incorrectly, for example rate of GST, then entire accounting will become erroneous. Therefore, we need to update and correct such mistake and error first, and then start reconciliation.

Voluminous transactions

When in an organisation, volume of transactions is high, entering all the transactions on time is itself very difficult. Reconciling it on time in such a situation becomes more tough. Therefore, an organisation must set up such a structure reconciliation takes place on real time. This will help the organisation to correctly move ahead.  Otherwise, it will be very tiresome to check and find any mistake when we reconcile after a long time.

Insufficient training

Staff require proper training before they are handed over with any particular job. Insufficient training may lead to incorrect work. Which may cost to an organisation a lot. Therefore, providing proper training to staff is important. An organisation must take all requisite measures to give proper training to its staff. For entering data, for filing returns and also for reconciliation, staff should be adequately trained and examined.

Reconciliation is a very important task in every aspect of an organisation. It should be given appropriate attention.

Keeping in mind above points, a management of the company shall put perform the task of reconciliation accordingly.

This is it from my side. Please share your feedback

Thank You.

CA Hema Pandey

About the author

Hema is a Chartered Accountant who is having about Eight years of experience in taxation and accounting. She is in practicing as a Chartered Accountant since 2020. She is a writer by passion and thus shares her experience and knowledge through her articles at various platform.

Predominantly her area of interest is GST. Since GST is a very new concept for India, every practitioner is looking for clarity in this area. She likes to share her experience with everyone and therefore tries to put them in form of articles.
Apart from this, she is also well-worsed in Financial market.

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  1. super .business man can do business if he started focusing the laws only he cannot grow.
    laws must be simple to easy to understand.

    140 cr public 5 cr assee only. Incomtax dept take steps only on assasees. if they increase the incomtax payers

    go to the market find out non gst holder doing more unaccounted business.

    even today 90% unaccounted business in india.

    No CA representing the matter. I am not saying all gst holder pay tax properly atleast he pays.
    but abount non gst holders.
    what gst officers doing

  2. if the supplier is not shown in the gist 1 why should the buyer affect. He purchased and paid the tax but he cannot

    claim the tax.

    dept should tax action not to the buyer.

    if the dept find buyer not shown in the gst stop him immediately for next month sales

    now everything is computerasid.

    every month gst1 and gst 3 filled. What is the need of gst9 . unwanted work. business man can focus business and pay tax.

  3. if the gst & incomtax dept start finding the Non Gst holder then every month tax collection come more than 3 Lakh crores

    without increasing any GST . dept is sleeping and putting burden on existing gst holder.

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