How to Reconcile GSTR-1 and GSTR-3B for Accurate Tax Filing, Get Practical GST Course in Delhi, 110077, by SLA Consultants India, New Delhi, Professional

Reconciling GSTR-1 and GSTR-3B is crucial to ensure accurate tax payments, avoid penalties, and prevent GST notices. Any mismatch between these returns can lead to compliance issues, blocking of Input Tax Credit (ITC), or financial liabilities.

How to Reconcile GSTR-1 and GSTR-3B for Accurate Tax Filing, Get Practical GST Course in Delhi, 110077, by SLA Consultants India, New Delhi,

Understanding GSTR-1 and GSTR-3B

• GSTR-1: Reports invoice-wise outward supplies (sales) made during the tax period.
• GSTR-3B: Summarizes total sales, ITC claims, and tax liability for the same period.

If sales reported in GSTR-1 do not match with GSTR-3B, the tax department may issue notices under Section 73 or 74 of the CGST Act.

Step-by-Step Reconciliation of GSTR-1 and GSTR-3B

1. Match Taxable Sales

• Compare total taxable value and tax liability in GSTR-1 (invoice-wise) with the summary in GSTR-3B.
• Ensure IGST, CGST, and SGST values are correctly reported.

2. Check Amendments and Credit/Debit Notes

• Verify whether any amendments or credit/debit notes issued in GSTR-1 are reflected in GSTR-3B.
• Adjust the differences in the next return period if required. GST Course in Delhi

3. Validate Zero-Rated and Exempt Supplies

• Ensure export sales, zero-rated supplies (LUT/Bond), and exempt sales in GSTR-1 match the values in GSTR-3B.
• Any errors may impact refund claims on exports.

4. Reconcile B2B and B2C Sales

• Ensure B2B invoices are correctly uploaded to enable buyers to claim ITC.
• Verify if B2C large and small transactions are properly reported.

How to Reconcile GSTR-1 and GSTR-3B for Accurate Tax Filing, Get Practical GST Course in Delhi, 110077, by SLA Consultants India, New Delhi,

5. Cross-Check ITC Claims from GSTR-2B

• ITC in GSTR-3B should match eligible ITC as per GSTR-2B (auto-populated purchases).
• If ITC is claimed beyond what is available in GSTR-2B, it may be disallowed.

6. Adjust Differences in Future Returns

• If a mismatch is found, adjust in the next GSTR-3B return or report amendments in GSTR-1.
• Maintain reconciliation records for future reference.

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