GST Reconciliation of Data Mismatch

GST Reconciliation of Data Mismatch

Classification of transactions

Every GST registered business has an outward supply tax liability, inward supply input tax credit and tax cash transactions. These three types of transactions are grouped as:

  • Electronic tax liability ledger,
  • Electronic input tax credit ledger, and
  • Electronic cash ledger

  • All three ledgers need to be reconciled before finalising the monthly GST reports ready for filing. Any exemption will lead to reversal of tax, penalty, interest etc.

    Electronic tax liability ledger

    All GST data submitted from the seller/service provider will be available on 16th for identification of mismatch entries. Any supplier’s GST data misrepresented by the business tax payer as a buyer could create a situation where the supplier is unable to complete the GST payments and or finalize the GST report as each and every mismatched tax invoices need to be scrutinized at the sourced level and require the counter party to correct the data.

    Electronic input tax credit ledger


    Similar to Electronic tax liability ledger, business tax payer should check his books to correct the data as much as possible and interact with the counter party to match the data. As data are managed digitally, any correction at one end will automatically carried over to other concerned parties and the data will be auto matched.

    Electronic cash ledger

    Electronic cash ledger comprises of the outcome amount of GST reports filed and the amount levied by GSTN. There are several instances identified by GSTN to levy penalty, interest, fees and other charges to the GST account of the business. The amount charged by GSTN may not be available to the business, which needs to be posted before finalising GSTR3. By posting these entries, the GSTR3 payment challan generated will match with the books of the business.