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.