Taxpayers will be able to claim ITC only if the invoice is present as a part of their GSTR-2B. Hence, taxpayers need to do a reconciliation to identify if ITC as per their purchase register and GSTR-2B data is matching.
Up to July 2020, taxpayers were comparing the GSTR-2A with the purchase register. Due to the introduction of static return in GSTR-2B, the monthly reconciliation has moved from GSTR-2A to GSTR-2B. However, for the yearly reconciliation, GSTR-2A, which is a dynamic return, is preferred. But as an exception, one must still refer to GSTR-2A for TDS and TCS credits.
The GST returns are filed either on a monthly or quarterly basis. Finally, annual returns must be filed after the financial year gets over, but before the 31st December of subsequent FY. This filing would need consolidation of the data reported over the FY. To ensure the correctness of the declaration made and to avoid duplications, taxpayers must reconcile the data, then consolidate the values and make the declaration.