2P Summary:

2P Summary is related to your uploaded purchase registered data for reconciliation. This summary will be available GSTIN and financial year wise. Filing period wise breakup is also available.

Here you will get summary details net of debit credit notes as well as document type-wise i.e. regular transactions, credit note, and debit note.

Importantly, you can see over here the bifurcation of invoices getting considered for reconciliation and invoices which do not get considered for reconciliation. So this summary will help you to analyse your purchase registered data.

Let’s see how this feature work:

This feature option you will get under reconciliation tab at PAN level as well as GSTIN level

Open

After selecting 2P summary, now select GSTIN and Financial year for which you want to calculate 2P summary and click on Calculate button. Once calculation is completed you can see summary details financial year wise. Now by doing a selection of document type and month-wise, you can see the 2P summary as per your requirement.

Open

In this summary, you can see the details like invoices considered for reconciliation and invoices not getting considered for reconciliation. Also the bifurcation between invoices with error and without error for different transactions types.

Invoices with invoice type as B2B, DE, SEWP, SEWOP without error and at least one line-item with tax applicability as T gets considered for reconciliation. Other transaction types like RCM, B2UR, IMG IMS and invoices with errors are not considered in reconciliation.

Introduction to Recon Results

Reconciliation Results

Here we come up with more insightful and smarter reconciliation for the whole financial year. So in this reconciliation, we tried to cover maximum scenarios which help you to match your data with GSTR 2A data to the maximum extent.

Basic Criteria for Auto-triggered Smart reconciliation

This is based on three factors:

1.Counterparty GSTIN;

2.Invoice number

Financial period (Financial period, we are deriving from invoice date)

So once you upload your purchased registered data and get GSTR 2A data, this smart reconciliation will run automatically and in the Result section, you can see results of reconciliation.

Also facility of Advanced reconciliation is provided. So based on various rules you can manually run advanced reconciliation to get more comparable invoices.

Probable Invoice number match concept

In smart reconciliation, one more important scenario related to probable matches based on invoice numbers gets covered. So here in probable matches we will derive the invoice number after removing “prefix to invoice number as 0”, special characters like “ / ” and “ – “ in invoice numbers.

So the mismatches which come due to “special characters like / or – and 0 prefix to invoice number” will get minimised and got categories as probable matches. Based on this derived invoice number your invoices further get reconciled as Match/Value mismatch/invoice mismatch categories.

The invoices lying in Supplier only or Purchaser only categories, you will get the probable invoice no. matches for that particular counter-party. If there are more than one probable matches then you need to select one with which you want to do reconciliation. Based on this selection your invoice will get categories further as Match / value mismatch / invoice mismatch. Also the one that you have not selected will get categorised as supplier only or purchaser only.

Now this concept of probable invoice number match is extended in Advance reconciliation to cover maximum scenarios of invoice no. mismatches. To know in details see Fuzzy invoice no. logic of Advance reconciliation.

As you know in EaseMyGST Sapphire, reconciliation is auto-triggered. Thus whenever GSTR 2A is downloaded from the GST system or GSTR 2 data is uploaded in EaseMyGST Sapphire, the invoices are compared and the results of comparison are displayed.

Snapshot of Recon Results

Here in the reconciliation snapshot, you will get an overview of the reconciliation process. For example, you will come to know that based on your purchase register data (2P) how many invoices got reconciled. Similarly based on supplier data (2A) how many invoices got reconciled.

Also after seeing an overview, you will get details of tax amounts based on criteria used for reconciliation and also get to know a summary of tax amounts based on action taken like accepted/rejected by you.

Reconciliation Summary and Category wise Vendor Summary

Now in the reconciliation module, we are providing reconciliation summaries that are as follows:

Summary – To create this summary, click on the vendor summary button. In this summary, the vendor count, the invoice count, taxable value and tax amounts following under various categories like match/value mismatch/invoice mismatch/Supplier only/Purchaser only. This summary is before taking any actions on invoices.

Here the count of invoices and taxable amounts, tax amounts will get bifurcated based on exact match or probable match of invoice numbers. Also bifurcation based on normal or advanced reconciliation is available.

If you click on the vendor count then it will redirect you to category wise vendor summary.

Facility to download summary is also available.

Invoice Reconciliation Results

Invoice reconciliation

In this reconciliation, process actions are allowed to take. And based on actions taken your final reconciliation report will get created.

Now let’s see seven categories in which invoices will get categorized and actions allow for those seven categories:

1. Match Category – GSTR 2A data matching with Uploaded data (2P)

2. Deemed Match Category – Within tolerance difference invoices deemed as match

3. Invoice Mismatch – Mismatch only in invoice level details like POS, Reverse charge, Invoice type

4. Value Mismatch – Mismatch in values like taxable value, tax values

5. Supplier only – Additional GSTR 2A invoices for which no comparable invoice found in uploaded invoices (2P)

6. Purchaser only – Additional uploaded invoices (2P) invoices for which no comparable invoice found in GSTR 2A

7. Original supplier only Amended – These are original invoices ignored and it’s amended invoice considered in reconciliation.

Supplier Only

These would be the invoices which are available in 2A download; however no corresponding invoice is available in uploaded 2P.

As mentioned in advanced reconciliation, if there are more than one related invoices found as per rule tolerance limit or fuzzy invoice logic then these related matches you can view in drop down for that particular invoice. And you need to select one closest invoice to perform reconciliation.

Also one facility of mark amendment is available. When you click on “Amended”, it will search for original invoices which got amended same or across gstin and across financial year in supplier only category. And then the original invoices which are found as amended will get re-categorised to “Original SO Amended”.

Actions Allowed –

• Accept supplier invoice – Here you are accepting data that’s come to GSTR 2A i.e. supplier invoice details

• Reject supplier invoice – Here you are rejecting suppliers data that’s come to GSTR 2A i.e. supplier invoice details

• In case you have not taken any actions then while creation of final reconciliation report supplier invoice will not get considered

Purchaser Only

These would be the invoices which are uploaded by the user in 2P; however no corresponding invoice is available in downloaded 2A.

Actions Allowed –

• Accept uploaded invoice – Here you are accepting data that’s uploaded by you i.e. your 2P data.

• Reject uploaded invoice – Here you can reject uploaded invoice.

As mentioned in advanced reconciliation, if there are more than one related invoices found as per rule tolerance limit or Fuzzy invoice no. logic then these related matches you can view in drop down for that particular invoice. And you need to select one closet invoice to perform reconciliation.

After running advanced reconciliation also if invoices are there in supplier only and Purchaser only category then here manual PO SO movement feature is also possible. In Purchaser only you will get list of supplier only invoices counterparty GSTIN wise. To more about manual PO SO movement.

Feature to delete invoice from reconciliation collection as well as from uploaded data is now available. Need to select the invoice which you want to delete and click on “delete 2P”.

Also option to mark ITC as provisional or Actual with the month in which this ITC you want to take, is available.

Manual PO SO Movement

As per this reconciliation feature, you can manually check the purchaser only invoices with the list of supplier only invoices. This list will be available counterparty GSTIN wise. So for each invoice in Purchaser Only category. you will get the supplier only invoices for that Counterparty GSTIN. Across financial year also this list will be available based on counterparty GSTIN and document financial year.

So in action column, you will see one list symbol, click on that button and you will see list of supplier only invoices which you can compare with purchaser only invoice.

Once you selected invoice from supplier only list, click on perform reconciliation. So that this invoice will get compared and get recategorized in match/invoice mismatch/value mismatch category.

Original Supplier Only Amended

In Advance reconciliation, if rule 5 i.e. across section reconciliation for B2BA and CDNA section is applied then original supplier invoices for which amended invoices or notes are available then such original invoice or note will not get consider for reconciliation.

Hence such not considered original supplier only invoices list you will found here in this tab i.e. “Original Supplier Only Amended”.

Also in Post action Summary, you will separately get details of total original supplier only invoices not considered in ITC calculation.

Post Action Summary

This is the overall summary of reconciliation after taking actions on reconcile data. So this report will give you an idea about “Total ITC Available” during the whole financial year. To view this summary, Go to reconciliation tab -> Results ->Click on Post action Summary tab.

In the summary, along with the invoice counts you can also get a view of tax amounts after you have accepted and rejected invoices. This will allow you to assess the ITC available for you to claim based on the invoices accepted.

Net Vendor Summary

It is vendor wise details for the whole financial year. Here you will get the comparative view between 2A and 2P data. Also, get to know the differences between 2P and 2A details. This comparison is based on invoice count, invoice value, taxable value and tax amount. These values will be net of debit-credit notes.

So for creation of this summary click on the “Vendor Summary” button. Once the request is completed, you can view the net vendor summary. A download option is also available over here. In download, you will get the entire details i.e. net values and it’s bifurcation based on document type i.e. regular transactions, debit notes and credit notes.

To view these net values getting bifurcated in reconciliation categories, click on that counterparty/Vendor entry.

Value added Facility – Send single and bulk Mail to Vendors

Send Mail to Vendor

By using this facility, you can send mail to a single vendor at a time and communicate the discrepancies in invoices. Here you will get pre-drafted mail and this mail body is editable. Also in one go, you can send 200 invoices.

Bulk Mail to Vendors

Bulk mail facility you can use if you want to send data to more than one vendor in one go. So here first you need to apply counterparty filter for at least 2 and maximum 20 vendor GSTIN in one go. Here it is also important to have vendor master uploaded on EaseMyGST Sapphire. Then only you will able to use this bulk mail functionality.

Also bulk mail history is available from there you can check details like who send mail, to which counterparties and what all filters are applied while sending data. Bulk Mail History screenshot

Reconciliation Reports

Reconciliation of invoices needed between data gets auto-populated in GSTR 2A and your purchaser registered data. Under GST, this process has gained significance as the sanity of the Input tax credit utilized by businesses is monitored by the GST authorities regularly. Also, the taxpayers must, on a regular basis, reconcile their data every month with the data declared by its vendors too.

It is also necessary to ensure that the ITC which you intend to claim is accurate and meets all the provisions of the GST Act and rules. This activity is more critical now, as the date of September month’s GSTR 3B return draws closer.

Keeping in view this requirement, in EaseMyGST Sapphire, we are making available reports which will further assist you in reconciling your invoices and ITC claim.

List of reports as follows:

1. Group Level Reports

2. GSTIN Level Reports

Group Level Reports

There are three reports under root PAN Level details. So the user who has access at root PAN level can only generate these reports.

For an entity having more than one GSTIN, it is important to get a view at the entity as a whole to identify the cases of cross-referencing of GSTINs within your Business Group. The detailed analysis on missing invoices will help to identify the scenarios where the vendors have raised invoices to some different GSTIN but within your PAN.

GSTIN Level Reports

There are three reports which are based on GSTIN level.  Let’s see the reports:

To view the GSTIN level reports, firstly select the GSTIN in a hierarchy for which you want to view the report

• Click on Reconciliation tab and

• Then click upon GSTIN level reports

Know Your Monthly ITC

Based on new rule addition by CBIC of 20% provisional ITC, now it is important to do reconciliation and check how much ITC is available on a monthly basis. To know this monthly ITC, you will get one option in the Reconciliation module i.e. “Know Your Monthly ITC”.

Follow the below procedure to generate ITC report and to view monthly recon results:

1.GET GST data through Bulk Download 2A Data for selected GSTIN and Return Period

1. Select option i.e. Know Your monthly ITC

2. Now firstly to generate Monthly 2A Summary select GSTIN and Return period and click on Calculate 2A summary

3. To view reconciliation results on monthly basis click on “Monthly Recon Results”

Monthly 2A Summary

To view GSTR 2A summary, select GSTIN and Filing Period and click on Calculate 2A summary

Once the calculation request completed, you can select document type like net debit and credit notes, regular invoices, credit notes and debit notes and Document status like original, revised and Original + Revised.

Here 2A values will get bifurcated between different conditions i.e. based on Counterparty filing status (CFS = Y / N), Reverse charge mechanism (RCM = Y / N) and Place of supply (POS).

As per GSTN calculations, CFS =Y, RCM =N and POS is same as taxpayer GSTIN is the combination for eligible ITC.

Also to know invoices already amended in next month, you need to run advance reconciliation rule i.e. “Reconcile Amended Supplier Only Invoices with Original Purchaser Invoices“.

So by using this report, you can decide how much ITC is available to you.

Monthly Recon Results

To decide your final ITC eligibility, it is important to do reconciliation. So here you can view your monthly reconciliation results.

Also the filter facility is available. Two new filters are added that are Supplier POS and Duration

Supplier POS – This filter will help you to view invoices where POS different or same as per taxpayer GSTIN. Invoices with different POS than taxpayer GSTIN are ineligible for ITC. So it will help in calculation of ITC.

Duration Filter – This filter will help you to view time gap between 2A and 2P and to take required action on the same.

Also, for counterparty GSTIN if you want to check its basic details with compliance status then click on arrow next to GSTIN number.

ITC Tracking

Based on recent notification 39/2021 and 40/2021, From Jan 2022 onwards, you can claim ITC on basis of GSTR 2B only. Hence now it is important to track invoices for which you can claim the ITC. Also Jan 2022 onwards, you can not claim the ITC on a provisional Basis.

So on basis of these new changes in rules, the Feature of ITC 3B marking got updated in EaseMyGST Sapphire as well.

To track 3B ITC marking, the option is available under the Reconciliation module in all the categories (Except Supplier only categories) i.e. “Mark 3B ITC” & “Reset 3B Marking”

Mark 3B ITC:- You need to select invoices on which you want to claim the ITC. Click on “Mark 3B ITC”. One dialog box will open where you have to select the month in which you want to claim ITC in 3B and Also select the type of ITC.

This facility you can use at a bulk level as well as invoice level as well.

A bulk facility will help you to mark multiple invoices in one go.

Below are the Various ITC marking types:

1. Actual – ITC being claimed for the month selected. Please ensure conditions for ITC such as use for business purpose, actual receipt of goods and services etc. are satisfied

2. Ineligible – ITC which cannot be claimed as per ITC rules

3. Reversal -ITC which was claimed in earlier months for the invoices and is to be reversed in selected month

4. Self-claimed ITC – This is a new ITC type marking and it will be available from Jan 2022 onwards. The meaning of this type is “This is a residual category and should be applied cautiously. Such ITC could be subject to scrutiny by Department and hence if being claimed, taxpayers are advised to have proper documentation and reasoning to support this case.”

5. Provisional – This ITC type is allowed till Dec 2021 only. As of now we know that based on notification 40/2021, ITC is allowed to be claimed when it will get reflected in GSTR 2B. Hence from Jan 2022 onwards, ITC marking as provisional is not allowed. So as per rule till Dec 2021, this provisional ITC marking is allowed.

Also as this ITC tracking action is strictly needed and proper marking should happen hence we added some errors/warnings, which can guide a user to take the corrective action. Also kindly note that these errors/warnings are added from Jan 2022 period onwards.

The error message will be provided in the below case and here “Actual” 3B marking type is not allowed to be marked for invoices:

Case – If the invoice has counterparty filing status as “N” (No), Also 2B flagging is not present and 3B marking type is selected as Actual then the system will show the error message as “Some invoices do not have GSTR 2B details and also the filing status is not-filed. For such invoices, marking ITC as “Actual” is not permitted. Kindly review the invoices selected before claiming ITC on actual basis. You can use Counterparty Filing Status and GSTR 2B filters to get such invoices.”

Warning messages will come in the below cases:

Case 1 – Counterparty filing status is Y but 2B flagging is not present.

Here 3B marking will be allowed but the warning message will come. This warning will indicate the user to kindly GET and Update 2B details in the reconciliation.

Case 2 – Counterparty filing status is N but 2B flagging is present.

Here 3B marking will be allowed but the below warning message will come. This warning will indicate the user to kindly reget 2A details so that counterparty filing status will get updated in reconciliation

Case 3 – This case is specific to the purchaser-only category. ITC marking selected other than Self-claimed ITC

Now Jan 2022 onwards, for the purchaser only invoices only self-claimed 3B ITC marking type is allowed. As the invoice is lying in a purchaser-only category it means the reconciliation for this invoice is not yet final and corresponding supplier invoices in 2A/2B are not present. Hence as per law, the actual taxpayer can not claim ITC on such invoices. But there may be a possibility of some practical challenges and because of that taxpayers want to claim the ITC hence we are allowing the “Self-claimed ITC” flag for such invoices.

In case of multiple reconciliation categories are selected like Match category selected along with purchaser only category and 3B marking type is selected other than self-claimed ITC then we are providing one warning message like “For Purchaser only category, ITC mark type other than Self -claimed ITC is not allowed”.

This means, marking for match invoices will happen but marking for the purchaser only invoices will not happen because ITC marking type is selected other than Self-claimed ITC.

Smart Reconciliation

In EaseMyGST Sapphire, reconciliation is auto-triggered. Thus whenever GSTR 2A is downloaded from GST system or GSTR 2 data is uploaded in EaseMyGST Sapphire, the invoices are compared and the results of comparison are displayed.

Now in addition to Smart auto-triggered reconciliation, we also introduced Advanced reconciliation which make sure maximum of invoices get compared.

EaseMyGST Sapphire covers all the possible scenarios of reconciliation from counter-party GSTIN match to invoice number and financial period match to give you more insightful and smarter reconciliation and buckets the differences into intuitive categories such as mismatch in values, missing invoices etc.

Reconciliation Process Flow:

Bulk Download GSTR 2A Data

You can place bulk get data order for multiple periods and for multiple sections.

Once you proceed with the request, the status and details can be found in Request History.