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Pardeep Jha & Associates Chartered Accountants

Services

GST Compliance & ITC Reconciliation

Automated line-by-line matching of purchase registers against GSTR-2B, monthly and annual filings, and department representation — with zero ITC leakage as the operating standard.

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What you get

Outcomes

  • ITC leakage eliminated — algorithmic matching of purchase registers against GSTR-2B each month
  • GSTR-1 and GSTR-3B filed by the 11th and 20th respectively — no last-minute scrambles
  • Vendor non-compliance surfaced proactively before it blocks working capital
  • ASMT-10 and DRC-01 notices resolved using pre-built, invoice-level reconciliation evidence
  • GSTR-9 and GSTR-9C compiled progressively and filed — no year-end reconstruction
  • E-invoice IRN and e-way bill workflows automated for applicable turnover thresholds

GST compliance is, at its core, a data-matching problem. Each month, two independent ledgers — your purchase register and the government’s GSTR-2B — must reconcile to the rupee. Where they diverge, working capital is blocked as inaccessible ITC, or an automated scrutiny notice is queued. Manual VLOOKUP-based reconciliation fails above a few hundred invoices. We replaced it with algorithmic matching that handles any transaction volume.

Compliance benchmarks

What the engagement delivers

ITC leakage target

₹0

Per-rupee reconciliation of every purchase invoice against GSTR-2B, run algorithmically each cycle.

GSTR-3B filed

Day 11

Monthly filing closed before the deadline with ITC fully computed, reversed where required, and offset applied.

Notice response time

72 hrs

ASMT-10 and DRC-01 replies prepared and submitted within 72 hours using pre-built monthly reconciliation records.

The compliance gap

Spreadsheet-based filing vs. an algorithmic compliance engine

The spreadsheet approach

Workable at 200 invoices. Broken at 20,000.

  • VLOOKUP crashes under high transaction volumes, forcing spot-checks that silently miss exceptions
  • Vendor GSTR-1 defaults go undetected until ITC is already blocked in the next filing cycle
  • GSTR-9 compiled at year-end from memory and prior-year templates — reconciliation is guesswork
  • Departmental notices trigger unplanned effort with no pre-built defence to draw from

Our approach

Line-by-line algorithmic matching at any transaction volume

  • Python scripts match purchase registers to GSTR-2B across millions of rows in minutes
  • Vendor exception reports distributed before GSTR-3B is filed — procurement can act before ITC is blocked
  • GSTR-9 accumulated progressively from monthly reconciliation data — no year-end reconstruction
  • Notice management is a defined 72-hour process, not an emergency response

Service scope

Three pillars of managed GST compliance

ITC accuracy, filing precision, and notice defence are interdependent. ITC accuracy depends on vendor data quality. Filing accuracy depends on ITC precision. Notice defence depends on reconciliation records built during the filing cycle. We run all three as a single managed workflow.

ITC reconciliation engine

Python-based matching of your purchase register against GSTR-2B, handling volumes that Excel cannot. Each invoice is categorised: perfect match, vendor-not-filed, GSTIN mismatch, rate error, or ineligible under Section 16(2) or Rule 36(4). The exception report reaches your procurement team before GSTR-3B is filed — while there is still time to recover or escalate to the vendor.

Monthly and annual filings

GSTR-1 filed by the 11th. GSTR-3B by the 20th with ITC offset computed and reversal schedule applied. Data flows from TallyPrime, Zoho Books, or QuickBooks directly to the GSTN portal via structured exports, eliminating transcription errors. GSTR-9 (all 19 tables) and GSTR-9C are built progressively from monthly records — not reconstructed from scratch each March.

Notice defence and representation

ASMT-10 scrutiny and DRC-01 demand replies are a standard deliverable, not a special engagement. The reconciliation evidence — invoice-level matching, Section 16(2) eligibility analysis, Rule 36(4) restriction schedules — is pre-built each month. Written replies are filed within the statutory response window. For matters that escalate to a personal hearing, we appear on record as authorised representative.

Most ITC leakage is not fraud — it is a data-matching lag that compounds quietly each month until it becomes a departmental notice.

CA Pardeep Jha · Founding Partner

Filing obligations by turnover

The frequency of filings, mandatory annual statements, and e-invoice requirements all depend on aggregate annual turnover. The table covers the standard registered person category; composition dealers and Input Service Distributors follow separate schedules.

Aggregate annual turnoverGSTR-1 / 3B frequencyGSTR-9C mandatoryE-invoice mandatory
Up to ₹5 croreMonthly, or quarterly under QRMPNoNo
₹5 crore to ₹10 croreMonthlyYesYes
Above ₹10 croreMonthlyYesYes
Composition dealersAnnual GSTR-4 onlyNoNo

Methodology

How we work

  1. Data audit and systems access

    Two-week review of your accounting setup — TallyPrime, Zoho Books, or QuickBooks — documenting the purchase register structure and establishing data feeds from the GST portal. Historic ITC ledgers are reviewed to quantify any existing leakage and identify recoverable amounts.

  2. Baseline reconciliation

    First-cycle GSTR-2B matching run across the prior 12 months. Mismatched invoices, GSTIN errors, and non-filer vendors are catalogued in a structured exception report. Net recoverable ITC from historic gaps is quantified and a recovery plan drafted.

  3. Monthly compliance cycle

    By the 7th of each month: purchase register reconciled against GSTR-2B, vendor exception report distributed to procurement, GSTR-1 and GSTR-3B prepared, reviewed, and filed. GSTR-9 data is accumulated progressively — no end-of-year scramble to reconstruct twelve months of filings.

  4. Notice management and representation

    On receipt of an ASMT-10 or DRC-01, the written reply is prepared within 72 hours using pre-built reconciliation evidence from the monthly cycle. We file the departmental submission and, where the matter escalates, represent the business at GST hearings.

Scope

What's included

  • Monthly GSTR-1 (outward supply return) — filed by the 11th
  • Monthly GSTR-3B with ITC computation, reversal schedule, and offset statement
  • Monthly GSTR-2B vs. purchase register reconciliation report
  • Vendor exception report — non-filers, GSTIN mismatches, and rate errors
  • ITC claim register maintained per Section 16(2) eligibility conditions
  • GSTR-9 annual return with all 19 tables reconciled to audited books
  • GSTR-9C self-certified reconciliation statement (₹5 crore+ aggregate turnover)
  • HSN/SAC summary with rate-wise and category-wise turnover breakdowns
  • E-invoice IRN generation and e-way bill automation (applicable taxpayers)
  • Written departmental replies for ASMT-10 and DRC-01 notices
  • Annual GST health report — ITC efficiency rate, vendor compliance score, interest exposure

Common questions

Frequently asked

What is the difference between GSTR-2A and GSTR-2B, and which one governs ITC claims?
GSTR-2A is a live, continuously updated document that changes every time a vendor files or amends their GSTR-1. GSTR-2B is a static, cut-off snapshot generated on the 14th of each month — and it is the document that governs ITC eligibility under Rule 36(4) of the CGST Rules. Reconciling against GSTR-2A gives false comfort because it may show invoices that later disappear. We reconcile exclusively against GSTR-2B and flag every invoice that has not yet appeared in it, ensuring every ITC claim is defensible at scrutiny.
What happens when a vendor fails to file their GSTR-1 and our ITC gets blocked?
Under the current framework, missing supplier GSTR-1 filings directly reduce your available ITC in GSTR-2B. We send a vendor exception report to your procurement team before GSTR-3B is filed each month — identifying every defaulting vendor and the ITC amount at risk. For repeat defaulters, we help draft vendor notices and assist in renegotiating contract terms to include GST compliance warranties. Proactive pressure on suppliers before the filing date is far more effective than disputing a DRC-01 demand after it has been raised.
We received an ASMT-10 notice for ITC mismatch. What do you do?
ASMT-10 is an automated scrutiny notice triggered when GSTR-3B ITC claims diverge from GSTR-2B data. We prepare a reconciliation statement that accounts for GSTIN errors, credit reversals, Rule 36(4) restrictions, and legitimate timing differences between filing cycles. The reply is filed within the statutory timeline — typically 30 days — supported by invoice-level evidence built from our monthly records. Where the mismatch is a data error rather than a genuine excess claim, the notice resolves without a demand. We appear as authorised representative if the matter escalates to a personal hearing.
Is GSTR-9C mandatory for us? Our annual turnover is around ₹5 crore.
GSTR-9C (reconciliation statement) is mandatory for taxpayers whose aggregate annual turnover exceeds ₹5 crore in a financial year. From FY 2020-21 onward it is self-certified by the taxpayer — statutory auditor certification is no longer required. However, the 16-clause reconciliation between audited accounts and filed returns carries significant penalty risk if filed incorrectly. We prepare and file GSTR-9C as part of the annual compliance cycle, and the underlying reconciliation data accumulates through the year so there are no end-of-year surprises or gaps.
What data do you need from us each month to run the compliance cycle?
Two exports: your purchase register (or a read-only accounting feed from TallyPrime or Zoho Books) and your sales ledger with invoice-level breakdowns. We handle the GST portal side entirely — GSTR-2B download, reconciliation, and both monthly filings. Initial onboarding configures the data feeds in three to five working days. After that, your team's monthly effort is typically under 30 minutes of data export.

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Ready to begin?

Book a 30-minute discovery call. We'll scope the engagement, confirm deliverables, and give you a fixed-fee proposal within 48 hours.

Book a consult WhatsApp us +91 6391 110 333