Reconciliation means matching data of ITC claimed in GSTR-3B by buyer with ITC reflected in GSTR-2A from invoices uploaded by seller in GSTR-1.
GSTR-2A Reconciliation with GSTR-3B is important for following reasons:
- GST Department may issue notice for mismatch of ITC in GSTR-3B and GSTR-2A
- To detect and rectify error of seller in GSTR-1 and error of buyer in GSTR-3B
- To ensure that buyer has claimed ITC of all purchase invoices or has not claimed ITC more than once
- To ensure that wrong input tax credit is not claimed by buyer on basis of fake invoice