GST Reconciliation: What Business Owners Should Check Every Month

GST notices often start from a difference between what you reported and what the department can see. A short monthly reconciliation catches most of these before they grow.

The problem

Suppliers file late, invoices are missed, credit notes are forgotten and returns are filed from memory. Small differences add up to a scrutiny notice or lost credit.

What to reconcile

• Sales: your sales register against the outward return you filed.
• Purchases: your purchase register against the auto-generated credit statement for the month.
• Tax paid: the tax you paid against the liability in your books.
• Ledgers: input and output tax ledgers against the portal.
• E-invoices and e-way bills: where they apply, against your sales records.

Practical checklist

1. Reconcile before you file, not after.
2. List invoices missing from the credit statement and follow up with those suppliers.
3. Check that credit you claim is eligible. Some categories are blocked.
4. Record credit notes and debit notes in the right month.
5. Review reverse charge entries.
6. Note any credit reversals you need to make.
7. Keep a reconciliation file for each month.

See our wider GST compliance checklist, and our GST services if you would like help.

More to read

• GST Compliance Checklist for Small Businesses
• GST Notice Received: A Practical Response Checklist