Purchase Reconciliation

Purchase reconciliation is the process of matching your Purchase Invoice data against the GSTR-2B data published by the government. GSTR-2B is an auto-generated statement showing all inward supplies reported by your suppliers in their GSTR-1 returns. By reconciling the two, you confirm which invoices are eligible for Input Tax Credit (ITC) and identify discrepancies before filing.

Why Reconciliation Matters

You can only claim ITC on a Purchase Invoice if the corresponding supply appears in your GSTR-2B. If your supplier has not reported the invoice in their GSTR-1, or if the details don't match, your ITC claim is at risk. Reconciliation helps you catch these issues early so you can follow up with suppliers before the filing deadline.

How PayInvoice Next Matches Your Data

The TaxGenie Compliance Engine downloads your GSTR-2B data from the government portal and compares it against the Purchase Invoices recorded in your system. For each invoice, the system checks the supplier GSTIN, invoice number, invoice date, and tax amounts. Based on the comparison, each record gets a match status:

Match Status	What It Means
Matched	All key fields match between your records and GSTR-2B
Partial Match	Some fields match but others have minor differences (e.g., small rounding in amounts)
Mismatch — Amount	Invoice exists in both but taxable value or tax amounts differ
Mismatch — Date	Invoice number and GSTIN match but the invoice date differs
Mismatch — GSTIN	Invoice number matches but the supplier GSTIN differs
Not in 2B	Invoice exists in your system but not in GSTR-2B — supplier may not have filed
Pending	Reconciliation has not yet been run for this invoice

Reconciliation Step by Step

Step 1: Download GSTR-2B Data

Navigate to the reconciliation section and select the filing period. PayInvoice Next connects to the government portal and downloads the latest GSTR-2B data for your GSTIN. The download date is recorded for audit purposes.

Step 2: Run Reconciliation

Click Run Reconciliation to start matching. The system compares each GSTR-2B inward supply record against your Purchase Invoices using supplier GSTIN and invoice number as primary keys, then verifies amounts and dates.

Step 3: Review Mismatches

After reconciliation completes, review the results. Focus on records that are not fully matched:

• Mismatch — Amount: Check whether the difference is due to rounding (within ₹1 is common) or a genuine discrepancy.
• Not in 2B: The supplier may not have filed their GSTR-1, or may have reported the invoice in a different period. Follow up with the supplier.
• Mismatch — GSTIN: Usually a data entry error. Verify the GSTIN on your Purchase Invoice against the supplier's GST certificate.

Step 4: Take Action on Mismatches

For each mismatch:

• Correct your records — If the error is in your Purchase Invoice (wrong GSTIN or invoice number), correct it and re-run reconciliation.
• Follow up with the supplier — If the invoice is missing from GSTR-2B or amounts don't match, contact the supplier before the filing deadline.
• Accept or reject via IMS — For invoices in GSTR-2B, use the Invoice Management System (IMS) to accept or reject. Only "Accepted" or "No Action Taken" invoices contribute to eligible ITC.

Impact on Input Tax Credit

Reconciliation directly affects how much ITC you can claim in your GSTR-3B:

Eligible ITC — Only inward supplies in GSTR-2B with an IMS status of "Accepted" or "No Action Taken" are included in your GSTR-3B Table 4. Rejected invoices are excluded.

ITC time limit — For financial years from 2024-25 onwards, ITC must be claimed by 30 November of the following financial year. PayInvoice Next tracks this deadline and warns you if an invoice is approaching the cut-off.

Supplier non-filing — If your supplier has not filed GSTR-1 and the invoice is missing from GSTR-2B, the ITC you claimed may need to be reversed. PayInvoice Next flags these invoices so you can take corrective action.

TIP

Run reconciliation regularly — ideally soon after the GSTR-2B is available each month (typically by the 14th). This gives you time to follow up with suppliers on mismatches before your GSTR-3B filing deadline.

Related Pages

• TaxGenie Compliance Overview — Full compliance engine overview
• GSTR Filing — How to prepare and file GSTR-1 and GSTR-3B
• GST on Purchase Transactions — How GST is calculated on procurements
• Purchase Invoice GST & E-Invoice — GST fields on the Purchase Invoice form
• Procurement Overview — The complete Purchase Request → PO → GRN → Invoice workflow