GST Reconciliation and Data Review

4.1 Reconciliation for Goods Businesses

What it means

This service compares books, return data, and GST records so that mismatches are caught before they turn into larger issues.

When you may need it

During periodic review, before annual return, before replying to notices, or when books and filings do not seem to align.

Why it matters

Turnover and tax mismatches become harder to explain once they accumulate over months.

Where it is done

Through internal working papers built from books, returns, and portal data.

Documents usually needed

  • Sales register
  • Purchase register
  • GSTR-1
  • GSTR-3B
  • GSTR-2B
  • Note registers
  • Stock / branch data, where relevant

How we help

We compare books with outward reporting, summary returns, and credit data to identify difference buckets and likely tax effect zones.

Illustration with figures

  • Sales as per books: ₹1,80,00,000
  • Sales as per GST reporting: ₹1,74,50,000
  • Difference: ₹5,50,000
  • Indicative tax effect at 18%: ₹99,000

Pros and Cons with Figures

Particulars If reconciled timely If not reconciled
Difference identified ₹5,50,000 ₹5,50,000 remains open
Indicative tax impact at 18% ₹99,000 examined ₹99,000 uncertain zone
Annual return readiness Better Lower
Notice preparedness Better Weaker
Management confidence Higher Lower

Time normally required: Usually 2 hours to several days, depending on data size.

How pricing is decided: Pricing depends on transaction volume, number of GSTINs, branch structure, quality of books, and whether historical periods are involved.

What may happen if ignored

  • Difference zone: ₹5,50,000
  • Indicative tax effect: ₹99,000
  • Periods involved: 12 months
  • Example review expansion if delayed: Higher across full year

Easy understanding: A reconciliation done once in time is usually far easier than defending a year of mismatch later.

4.2 Reconciliation for Service Businesses

What it means

This service helps service businesses compare client billing, books, and GST reporting so that year-end or notice-stage differences do not come as a surprise.

When you may need it

During periodic review, before annual closure, or when billed income and filed values do not match.

Why it matters

Service businesses often rely heavily on client-wise billing records, so a small difference ratio can still carry meaningful rupee value.

Where it is done

Through internal reconciliation using invoice summaries and return data.

Documents usually needed

  • Client invoice register
  • Expense register
  • GSTR-1
  • GSTR-3B
  • 2B
  • Ledger summaries

How we help

We compare service income in books and returns, identify client-wise gaps, and estimate tax impact areas requiring explanation.

Illustration with figures

  • Service income as per books: ₹96,00,000
  • Service income as per GST reporting: ₹93,20,000
  • Difference: ₹2,80,000
  • Indicative tax effect at 18%: ₹50,400

Pros and Cons with Figures

Particulars If reconciled timely If not reconciled
Difference identified ₹2,80,000 ₹2,80,000 remains open
Indicative tax impact at 18% ₹50,400 reviewed ₹50,400 uncertain
Client-wise accuracy Better Lower
Year-end closure Better Harder
Confidence in data Higher Lower

Time normally required: Usually 1 to 8 hours, depending on invoice structure and record quality.

How pricing is decided: Fees depend on invoice count, number of clients, whether year-end support is involved, and how clean the books are.

What may happen if ignored

  • Difference left open: ₹2,80,000
  • Indicative tax effect: ₹50,400
  • Potential affected clients: 12
  • Example later cleanup cost: Higher if left for year-end only

Easy understanding: The earlier the mismatch is found, the easier it is to explain.