Status Reconciliation (GSTR-2) in TallyPrime: In 5 Easy Steps

While GSTR-2 filing is currently suspended, the “Status Reconciliation” feature in TallyPrime played a critical role when GSTR-2 was active.

Here’s a breakdown of Status Reconciliation and how it streamlines compliance processes:

1. The Problem: Data Mismatches

  • When your suppliers file their GSTR-1 returns, your purchase details are automatically reflected in your GSTR-2A.
  • Discrepancies might occur between your purchase records in TallyPrime and the data uploaded by suppliers. This can be due to:
    • Recording errors on your side (wrong invoice number, amount, tax rate)
    • Mistakes made by suppliers
    • Timing differences in reporting

2. What is Status Reconciliation?

  • TallyPrime’s Status Reconciliation feature allows you to compare your purchase records against your GSTR-2A (data populated from suppliers).
  • It provides a systematic way to identify mismatches and inconsistencies.
  • The goal is to ensure maximum ITC (Input Tax Credit) eligibility and to resolve discrepancies before filing GSTR-2 (should it be reintroduced).

3. How it Works

1. Import GSTR-2A:

TallyPrime allows you to either download your GSTR-2A JSON file from the GST portal or fetch it directly.

2. Comparison:

The software compares each purchase voucher in TallyPrime with its corresponding entry in GSTR-2A.

3. Status Assignment:

Each voucher/transaction is assigned a status for easy identification:

  • Matched: The data in your records aligns with the GSTR-2A entry.
  • Modified: You need to review and potentially edit the transaction in TallyPrime to match the GSTR-2A details.
  • Added: The transaction is present in GSTR-2A but might be missing in your TallyPrime records.
  • Rejected: You believe that the GSTR-2A entry is incorrect and might choose to dispute it.

4. Benefits of Status Reconciliation (GSTR-2) in TallyPrime:

  • Simplified Reconciliation: Streamlines the process of verifying numerous transactions against your GSTR-2A.
  • Accuracy: Minimizes errors, ensuring accurate reporting and maximizing ITC claims.
  • GST Compliance: Reduces the risk of discrepancies and penalties due to incorrect data.
  • Time-Saving: Automates the comparison process, allowing you to focus on resolving mismatches.

5. Utilizing The Status Reconciliation Report

  • TallyPrime generates a Status Reconciliation Report for GSTR-2.
  • This report provides a detailed overview, listing transactions with their assigned statuses.
  • You can drill down into each status category (Matched, Modified, etc.) to examine specific transactions and make necessary adjustments.

Important Notes for Status Reconciliation (GSTR-2) in TallyPrime:

  • GSTR-2 filing is currently suspended, so this feature might have limited functionality in TallyPrime depending on the version.
  • The Status Reconciliation feature assists in preparing your data accurately for GSTR-2 should it be reintroduced.
  • Always consult a qualified accountant for complex mismatch scenarios and for the latest GST regulations.

Even though GSTR-2 filing isn’t currently active, understanding Status Reconciliation in TallyPrime is essential for future readiness.

It emphasizes how TallyPrime aids in accurate data preparation to facilitate smoother compliance in accordance with potential regulations.


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