Is GSTR 1 reconciliation draining your valuable time?

Reconciling GSTR-1 with Tally data involves ensuring that the sales data recorded in Tally matches the details reported in the GSTR-1 returns filed with the GST portal. This process helps in identifying discrepancies, avoiding notices from the GST department, and ensuring accurate GST compliance. Here’s a step-by-step guide:

Step 1: Export GSTR-1 Data from the GST Portal

  1. Log in to the GST portal.
  2. Navigate to GSTR-1: Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.
  3. Select the relevant financial period and download the GSTR-1 summary and detailed report in Excel format.

Step 2: Export Sales Data from Tally

  1. Open Tally and go to ‘Display’ > ‘Statutory Reports’ > ‘GST’ > ‘GSTR-1’.
  2. Set the period for which you want to reconcile.
  3. Export the report in Excel format. Ensure that the report includes all relevant details like invoice number, date, taxable value, GST amount, etc.

Step 3: Prepare Data for Reconciliation

  1. Organize the Data: Ensure that both the GST portal data and Tally data are structured similarly in Excel for easy comparison. Typically, the key columns would include:
    • Invoice Number
    • Invoice Date
    • Taxable Value
    • GST Amount (SGST, CGST, IGST)
    • Total Invoice Value
  2. Clean the Data: Remove any formatting, empty rows, or irrelevant data that might interfere with reconciliation.

Step 4: Reconciliation Process

  1. Use Excel functions such as VLOOKUP, INDEX-MATCH, or Conditional Formatting to compare the data from the GST portal and Tally.
  2. Identify Discrepancies:
    • Missing Invoices: Check for invoices that appear in one dataset but not in the other.
    • Mismatch in Values: Highlight any differences in taxable value, GST amount, or total invoice value.
    • Tax Category Discrepancies: Ensure that the categorization (e.g., IGST vs. CGST/SGST) is consistent across both datasets.

Step 5: Resolve Discrepancies

  1. Investigate the reasons for the discrepancies. Common reasons include:
    • Incorrect invoice data entry in Tally.
    • Invoices missed in GSTR-1 filing.
    • Incorrect GST rates applied.
    • Timing differences (e.g., invoices accounted for in a different period).
  2. Make necessary corrections in Tally or file an amendment in GSTR-1 to rectify the errors.

Step 6: Document and Report

  1. Prepare a reconciliation report summarizing the discrepancies found and the actions taken.
  2. File amendments or returns as necessary to correct any errors in the GST portal.

Step 7: Regular Monitoring

  1. Conduct periodic reconciliation (monthly or quarterly) to avoid last-minute hassles during the annual return filing.
  2. Maintain documentation for all reconciliations and corrections for audit purposes.

By regularly reconciling GSTR-1 with Tally data, businesses can ensure accurate GST compliance and minimize the risk of errors or penalties.

 

How LedgerVision Reconciles GSTR1 Data with tally data

LedgerVision effectively reconciles GSTR1 data with Tally data by utilizing downloaded JSON files from the GST portal ( https://www.gst.gov.in/ ) and the Tally data imported into LedgerVision. Since it is a desktop-based software, it doesn’t require the user to upload Tally data for reconciliation. The software is capable of reconciling data for any number of months, considering all voucher types used for sales entries, and even supports group company reconciliation.

 

 

Key Features:

  1. Multi-Month Reconciliation: Handles reconciliation across any number of months.
  2. Comprehensive Voucher Coverage: Takes into account all voucher types used for sales entries.
  3. Group Company Reconciliation: Supports reconciliation for group companies.
  4. Efficiency and Accuracy: Saves a significant amount of time and energy while ensuring accurate results.

Reconciliation Reporting:

LedgerVision provides detailed reconciliation reports, which highlight areas where discrepancies occur:

  1. GST Not Found: Indicates that the GST number of a party found in the JSON is not present in Tally, and the invoice does not match.
  2. Invoice Not Found: The GST number and party from JSON match the ledger master in Tally, but invoice details like number, date, amount, or GST rate are missing.
  3. Match Found: The GST number, party, and invoice details all match perfectly between the JSON and Tally data.
  4. Mismatch in JSON: The GST number and party match, and the invoice is found, but GST details in the JSON file are incorrect, while Tally data is correct.
  5. Mismatch in Tally: The GST number and party match, and the invoice is found, but GST details in Tally are incorrect, while the JSON data is correct.
  6. Probable Match: A unique feature where LedgerVision matches incomplete invoice numbers (e.g., last 7 to 2 digits, numeric, alphabets) along with date, amount, GST rate, etc. If all other details are correct, the invoice is termed a probable match.
  7. In tally not in JSON: This report provides details of invoices which are present in tally but not found in JSON data. Based on this report user can approach Vendors/Parties to update the returns filed.

This systematic approach ensures that the reconciliation process is thorough, catching discrepancies and helping users maintain accurate records.

 

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