GST – System based reconciliation of information furnished in FORMS


Clarification of Circular No. 7/7/2017/CGST dated 1st September 2017

System based reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2 with FORM GSTR-3B

  • The GST Policy Wing of CBEC has issued clarifications regarding system based reconciliation of information furnished in Form GSTR-1 (outward supply return) and Form GSTR-2 (inward supply return) with Form GSTR-3B.
  •  The information furnished in GSTR-3B and GSTR-1 for the month of July shall be auto-drafted in GSTR-2A for all corresponding recipients of supply.
  •  Based on the details communicated in GSTR-2A, the registered person shall prepare the statement of inward supplies in GSTR-2 by:
  • Adding, deleting or modifying the invoice level details communicated in GSTR-2A.
  •  Adding information pertaining to details that are required to be furnished in GSTR-2 but are not part of FORM GSTR-2A like details of imports, details of supplies attracting reverse charge that have been received by registered person.
  •  Providing details of supplies received from composition suppliers and exempt, nil-rated & non GST inward supplies.
  •  Providing details of advances paid on inward supplies attracting reverse charge, if any, along with adjustments;
  • Providing details of reversal of input tax credit (As per Rules 37, 39, 42 and 43 of CGST Rules), if any,
  •  Providing HSN wise summary details of inward supplies.

Correction of erroneous details furnished in GSTR-3B


  •  Correction of details provided in FORM GSTR-3B through FORM GSTR-1 or FORM GSTR-2:
  •  If outward supplies have been under reported or excess reported in GSTR-3B, the same may be correctly reported in GSTR-1.
  •  If inward supplies or the eligible ITC have been reported less or more than what they should have been, the same may be correctly reported in GSTR-2.
  • This will get reflected in the revised output tax liability or eligible ITC.
  • Details furnished in GSTR-1 and GSTR-2 will be auto-populated and reflected in GSTR-3 for that particular month.

Reconciliation process




Tax payable as per FORM GSTR-3 is more than what has been paid as per FORM GSTR-3B Payment of additional amount of tax along with interest on delayed payment of tax starting from 26.08.2017 till date of debit in cash/ credit ledger
Eligible ITC claimed in FORM GSTR-2 is less than ITC claimed and utilised in FORM GSTR-3B Excess ITC availed added to output tax liability and to be paid along with interest
Eligible ITC claimed in FORM GSTR-3B is less than ITC eligible in FORM GSTR-2 Additional ITC shall be credited to ledger and may be used if there is an increase in output tax liability
Output tax liability as per FORM GSTR-1 and FORM GSTR-2 is less than output tax liability as per GSTR-3B and the same is  
(i)  Not offset by decrease in eligible ITC Excess carried forward to the next month’s return for offset against output tax liability.
(ii)  Offset by a decrease in eligible ITC Decrease adjusted against the output tax liability and balance carried forward to next month’s return for offset against output tax liability.


FORM GSTR-3B submitted or not submitted


Where GSTR-3B submitted without payment of taxes (by debiting of taxes (by debiting from Electronic cash or credit ledger)
  • Furnish GSTR-1 and GSTR-2, and sign and submit GSTR-3 along with payment of due taxes
  • Payment of interest on delayed payment  of  tax  starting  from 26th August, 2017 till the date of debit from cash/ credit ledger
  • No payment of late fee
Where GSTR-3B not submitted and taxes not paid


  • Other important points
  •  Transitional credit as claimed in Form GST TRAN-1 and credit to ledger may be utilised for discharging of any additional tax liability.
  • Matching of information in FORM GSTR-1 and FORM GSTR-2 will be carried out as if such returns have been submitted in the regular course (process of matching as per Sections 41 – 43 of CGST Act read with Rules 69 – 76 of CGST Rules).
  • Amendment of FORM GSTR-1 and FORM GSTR-2 shall be done following the procedures as per Sections 37(3) and 38(5) of the CGST Act, respectively.
  • GSTR-3 to be considered a valid return when tax payable has been paid in full after which it shall be taken up for matching.

Categories: GST, Uncategorized