GST reconciliation is the process of comparing the data reported in a taxpayer's GST returns with the data automatically uploaded by their suppliers in their GSTR-2A. It ensures that the input tax credit (ITC) claimed matches the tax liability, reducing errors and ensuring compliance.

To prepare GST reconciliation:

• Gather all GST-related documents, including returns and invoices.
• Compare sales and output GST with filed GSTR-1 and GSTR-3B
• Reconcile purchases and input GST with GSTR-2A and GSTR 2B
• Identify and rectify discrepancies in data.
• Update GST returns, maintain records, and ensure compliance.

Yes, GST reconciliation is mandatory for businesses to ensure accurate compliance and claim Input Tax Credit (ITC) properly.

The reconciliation process of GST input involves matching the Input Tax Credit (ITC) claimed in GSTR-3B with the ITC available in GSTR-2A. This helps ensure that the ITC claimed matches the tax paid on eligible purchases and is reconciled accurately for compliance.

GSTR-2A and GSTR-3B reconciliation is the process of comparing the Input Tax Credit (ITC) available in GSTR-2A (auto-populated from your suppliers' GSTR-1) with the ITC claimed in your GSTR-3B. This helps ensure that the ITC claimed in your returns matches the ITC available from your suppliers, ensuring accurate GST compliance.

You can claim ITC until  30th November of the next financial year, or the date of filing the annual return, whichever comes first. It's important to adhere to this time frame when claiming Input Tax Credit (ITC) in GST.

GSTR-1 filing is the process of submitting details of outward supplies or sales made by a GST-registered business to the government. It includes information about the quantity and value of goods or services sold, tax collected on these sales, and other related data. GSTR-1 must be filed regularly by registered taxpayers to comply with GST regulations.

All businesses, except those under the Composition Scheme and Input Service Distributors, are required to file their GSTR-1 regularly. The frequency of filing can be either monthly or quarterly, depending on the preference selected by the taxpayer. It's essential to file GSTR-1 on time to ensure compliance with GST regulations.

If a taxpayer is filing GSTR-1 for sales made in September, the due date is October 10th. For quarterly filing, it's at the end of the month following the quarter's end. It's crucial to meet these due dates for compliance.

Filing GSTR-1 is mandatory for every business, even if there are no sales (Nil Return). There was a late fee of Rs. 200 per day for delayed filing, but this fee has been exempted by CBIC through a notification. It's important to file on time to avoid penalties.

Zero-rated supplies in GSTR-1 refer to supplies that are not subject to GST, both as Input Tax and Tax Liabilities. This category includes exports and supplies to SEZ Units or Developers.

Job work is any treatment or process undertaken by a person on goods belonging to another registered person.

You should file your GSTR-3B returns by the 20th of the following month. For instance, if it's for April 2022, the deadline is May 20, 2022.

Taxpayers are required to declare their GST liabilities for a particular tax period and discharge these liabilities in Form GSTR-3B. A normal taxpayer is required to file Form GSTR-3B returns for every tax period applicable. Note: Taxpayers have to file Form GSTR-3B even if there is no business activity (Nil Return).

GSTR-3 provides a comprehensive breakdown of details regarding both inward and  outward supplies, input tax credit, and tax liability. Conversely, GSTR-3B is a streamlined version, focusing solely on total turnover and calculating tax liability based on outward supplies and input tax credit.

GSTR-2A is a dynamic statement that automatically reflects the details of inward supplies received by a registered taxpayer. It is generated based on the information submitted by the supplier in their GSTR-1, GSTR-5, GSTR-6, GSTR-7, and GSTR-8.

GSTR-2B, in contrast, is a static statement auto-generated on a specific date only based on information furnished by suppliers in their GSTR-1, GSTR-5 or GSTR-6 only. The GSTR 2B of a particular period gets generated on 14th of next month.

Form GSTR-2A is not filed by any entity. Instead, it is automatically generated as a draft that compiles all purchases made during a specific tax period. It's important to note that GSTR-2A solely includes purchase records for which a supplier has reported sales.

GSTR-9 is a yearly return that must be submitted by every registered taxpayer under GST, with only a few exceptions. It involves the compilation of outward supplies, inward supplies, tax liabilities, and the input tax credit utilized throughout the financial year.

GSTR 9 Annual Return must be filed by registered regular taxpayers with a turnover exceeding INR 2 crores annually. The filing deadline is on or before December 31st of each year.

GSTR 9 filing exemption applies to several categories, including taxpayers under the composition scheme (who must file GSTR-9A), casual taxable persons, input service distributors, non-resident taxable persons, individuals paying TDS under section 51 of the CGST Act, and those collecting TCS under section 52 of the CGST Act.

Starting from the financial year 2022-23, the late fee per day for GSTR 9 varies based on turnover. 
1. For turnovers up to Rs 5 crore, the late fee is Rs 50 (Rs 25 each under CGST and SGST Act).
2. For turnovers exceeding Rs 5 crore but less than Rs 20 crore, the late fee is Rs 100 (Rs 50 each under CGST and SGST Act).
3. For turnovers exceeding Rs 20 crore, the late fee is Rs 200 (Rs 100 each under CGST and SGST Act.

GSTR-9C, an annual GST reconciliation statement, is mandated for certain taxpayers. Individuals with a total turnover surpassing Rs. 5 crore during a financial year are obligated to submit this form. Additionally, they must provide a copy of their audited annual accounts.

While GSTR 9 is a mandatory Annual Return for all taxpayers, GSTR 9C is an Annual Reconciliation Statement that taxpayers with an annual aggregate turnover exceeding INR 2 crore and INR 5 crore are required to file, respectively.

In GSTR-9, taxpayers cannot make new ITC claims for the fiscal year 2022-23.

GSTR-6 is to be filed by individuals registered as Input Service Distributors (ISD). It is mandatory to file this return on a monthly basis. Even if there is no Input Tax Credit (ITC) available for distribution or no ITC is being distributed during the month, a 'Nil' return must still be filed.

To file GSTR-6, you need to be a registered taxpayer under GST with a 15-digit PAN-based GSTIN. Additionally, your business must have an aggregate turnover exceeding 20 lakh rupees.

In case of failure to submit the return by the due date, a fine of ₹50 per day is levied. However, no late fee concession is provided when filing a NIL return.

The due date for submitting GSTR-6 is the 13th of the following month. For instance, for the month of April 2023, the return must be filed by or before May 13, 2023. Late fees for GSTR-6 amount to Rs 50 per day (₹ 25 CGST and ₹ 25 SGST).

Input Tax Credit (ITC) is a mechanism that allows a registered taxpayer to offset the taxes paid on inputs against the taxes they collect on output supplies. In simpler terms, it enables businesses to claim a credit for the GST (Goods and Services Tax) they pay on their purchases, reducing their overall tax liability.

To claim Input Tax Credit (ITC), a registered taxpayer under the GST Act who has paid the applicable tax is eligible. They must possess a valid tax invoice or debit note issued by the supplier to claim ITC and all other conditions for claiming ITC has been satisfied.

To claim Input Tax Credit (ITC), several conditions must be met, including:

1. You must be a registered taxpayer under GST.
2. You should possess a valid tax invoice or debit note issued by a GST-registered supplier.
3. The goods or services for which you are claiming ITC must have been used for business purposes.
4. The supplier must have filed their GST returns and paid the tax to the government.
5. The recipient must have received the goods or services.
6. The recipient must have furnished their GST returns.

Eligible Input Tax Credit (ITC) refers to the GST you can claim on purchases used for taxable supplies. Ineligible ITC is GST on purchases not eligible for claiming, such as those used for non-business purposes or for exempt supplies.

There is a penalty of Rs. 10,000 or 100% of the wrongly claimed ITC, whichever is higher, along with 24% interest from the date of availing to the date of reversal. It's crucial to ensure proper invoices when claiming Input Tax Credit (ITC) in GST.

You can claim ITC until  30th November of the next financial year, or the date of filing the annual return, whichever comes first. It's important to adhere to this time frame when claiming Input Tax Credit (ITC) in GST.

Reverse Charge Mechanism (RCM) in GST is a tax mechanism that shifts the responsibility of paying taxes on certain categories of supplied goods or services from the supplier to the recipient.

RCM is applicable to specific items, including Cashew Nuts (unshelled or unpeeled), Bidi Leaves (Tendu), Tobacco Leaves, Silk Yarn, Raw Cotton, the supply of lottery, and used vehicles, seized and confiscated goods, old and used goods, waste, and scrap. The application involves various combinations of agriculturists, registered persons, and government entities.

Certainly. RCM in GST is a scenario where the recipient of goods or services becomes responsible for paying the Goods and Services Tax, as opposed to the usual situation where the supplier bears this responsibility. For instance, the supply of raw cotton by farmers to cooperatives, including kala cotton, is subject to RCM.

Reverse charge is applicable to GST on residential rent only if the monthly rent paid by the tenant to the landlord exceeds Rs. 50,000. When the rent falls below this threshold, the reverse charge provision does not come into effect.

Under GST, services imported with or without consideration are considered supplies, irrespective of whether they are part of a business transaction. Import of services typically falls under GST reverse charge for most businesses.

To access generated and received e-invoices, users should log in to the E-Invoice portal (https://einvoice.gst.gov.in) using their GST portal credentials. After logging in, users can easily find the option to download e-invoice JSON. This functionality is also available through G2B APIs and can be accessed via the GSP/ASP route. However, when using APIs, users will need to authenticate their credentials as well.

E-invoice download privileges are granted to registered taxpayers, including both suppliers and recipients, possessing active GSTIN and valid login credentials.

E-Invoice JSON files can be downloaded for a span of 6 months from the date of IRN (Invoice Reference Number) generation.

Certainly, even canceled taxpayers retain the ability to download JSON files, albeit only for the period during which their registration remained active.

Downloaded files remain accessible in the Download History for a window of two days from the date of file generation. After this two-day timeframe, recipients and suppliers must regenerate the file to facilitate download. This policy is applicable to both the "For Period" and "List of IRNs" tabs.

Form GST DRC-01C is designed to address discrepancies between Input Tax Credit (ITC) declared in GSTR-3B and the ITC available in GSTR-2B. It allows taxpayers to explain the differences online.

The system compares the ITC claimed in GSTR-3B with the ITC available in GSTR-2B for each return period. If the claimed ITC in GSTR-3B exceeds the available ITC in GSTR-2B by a predefined limit or percentage difference, an intimation is sent.

If you receive an intimation, you must file a response using Form DRC-01C Part B. You can either provide details of the payment made to settle the difference using Form DRC-03 or offer an explanation for the difference, or choose a combination of both options.

Ignoring the intimation is not recommended. If no response is filed in Form DRC-01C Part B, you may not be able to file your subsequent period GSTR-1/IFF.

You can provide details of the payment made to settle the difference using Form DRC-03, offer an explanation for the difference, or choose a combination of both options.

Visit the GST portal and log in using your credentials. Navigate to Services > Returns > Return Compliance > ITC Mismatch DRC-01C. Click on the intimation to file your response in Form DRC-01C Part B.

It is advisable to respond promptly. The timeframe for response submission is within a period of 7 days, but a timely response ensures smoother compliance.

No, if no response is filed in Form DRC-01C Part B, you may not be able to file your subsequent period GSTR-1/IFF.

Rule 37A mandates taxpayers to reverse the Input Tax Credit (ITC) availed on invoices or debit notes for which details have been furnished by their supplier in GSTR-1/IFF but the return in FORM GSTR-3B for the said period has not been furnished by their supplier until the 30th day of September following the end of the financial year.

Taxpayers are required to reverse the amount of ITC availed on such invoices or debit notes while furnishing a return in FORM GSTR-3B on or before the 30th day of November following the end of the financial year in which the ITC had been availed.

Taxpayers should take note of the communicated ITC amount and ensure that, if availed by them, it is reversed as per Rule 37A of CGST Rules before the 30th of November, 2023. The reversal should be done in Table 4(B)(2) of GSTR-3B while filing the concerned return.

Taxpayers should report the reversal of ITC under Rule 37A in Table 4(B)(2) of GSTR-3B.

Failure to reverse the ITC by the deadline may result in non-compliance with the provisions of Rule 37A. Taxpayers are urged to ensure timely compliance to avoid any penalties or repercussions.

2FA is an additional layer of security introduced by GSTN for login to the GST portal. It enhances security by requiring users to provide a one-time password (OTP) along with their user ID and password.

The 1st phase rollout includes Haryana, Punjab, Chandigarh, Uttarakhand, Rajasthan, and Delhi. The pilot rollout in Haryana has been successful. The 2FA solution will be active from December 1, 2023.

The 2nd phase, covering all states across India, is planned for a subsequent rollout after the initial phase.

After entering the user ID and password, taxpayers will receive an OTP on their Primary Authorized Signatory's mobile number and email. This OTP is necessary for login. If you change your system (desktop or laptop or browser) and location, the OTP will be required for authentication.