Regular GST reconciliation is not just a year-end exercise. For SMEs, aligning purchase books with GSTR-2B and ensuring sales are correctly reflected in GSTR-1 reduces the risk of blocked credits, interest, and prolonged department scrutiny.
What to review each month
- Match vendor invoices to GSTR-2B and flag vendors who file late or with mismatches.
- Reconcile output tax between your accounting software and GSTR-1 / IFF, if applicable.
- Track credit notes, debit notes, and RCM entries separately so nothing is double-counted or missed.
When discrepancies appear, document the reason (timing difference, wrong HSN, or data entry) and correct in the next open period where rules allow. Your CA can help prioritise high-value vendors and recurring mismatch patterns.
Need help structuring a monthly close checklist? Contact KCA TaxCare for GST support tailored to your industry and supply chain.