Input tax credit reconciliation

Define the GST work

We match invoices, identify missing or mismatched records and organise vendor follow-up and exception categories. Legal eligibility, reversals and timing questions are separated from mechanical matching.

Fix the GSTIN, period and versions of the purchase register and portal data used for the comparison. Record the matching approach and keep invoice-level differences visible. A summary percentage can help prioritise work, but the business also needs to know which documents require correction, explanation or a separate eligibility decision.

Records needed for a useful assessment

• Purchase register
• tax invoices
• GSTR-2B
• receipt evidence
• vendor statements
• payment records
• prior credit and reversal workings.

Group exceptions by their cause: missing source document, inconsistent supplier or invoice details, amount difference, duplicate entry or period difference. Retain the original record alongside the proposed correction. Link vendor responses to the affected invoices so the next reconciliation can distinguish a resolved item from an unanswered query.

A transaction detail that matters

An invoice appearing in a statement is not by itself the whole eligibility assessment. Business use, documentation and other applicable conditions still need examination.

For example, an invoice number recorded with a different separator may appear unmatched even though the underlying document is the same. Confirm the supplier, date, amounts and source invoice before correcting the mapping. Conversely, similar numbers alone should not cause two separate invoices to be merged.

What your proposal will cover

The output is a reconciliation and action list. Vendor correction, disputed eligibility and recovery from suppliers require explicit scope.

The written engagement confirms the GSTINs, periods, deliverables and responsibilities. Government payments and professional charges are identified separately.

The handover provides the invoice-level reconciliation, the basis for resolved differences and an action list with owners. Keep proposed credit treatment, the client’s decision and the amount actually reflected in the relevant working distinguishable. A supplier’s promise to correct its record remains a follow-up item until the appropriate evidence is available.