GST Monthly Reconciliation Workbook — FY 2025-26 onwards
The most common source of GST scrutiny and notices is an unexplained gap between (i) outward supplies in books, (ii) outward supplies in GSTR-1, (iii) tax paid in GSTR-3B, and (iv) ITC auto-populated in GSTR-2B. This template gives you the columns and the explanations to keep that reconciliation clean every month.
Print this page (Save / Print as PDF) and use one copy per GST registration per month.
Section A — Outward supply reconciliation
| Particular | Books | GSTR-1 | GSTR-3B | Difference | Explanation |
|---|---|---|---|---|---|
| Taxable turnover (B2B) | — | — | — | — | — |
| Taxable turnover (B2C) | — | — | — | — | — |
| Zero-rated supplies (exports + SEZ) | — | — | — | — | — |
| Exempt supplies | — | — | — | — | — |
| Nil-rated supplies | — | — | — | — | — |
| Non-GST supplies | — | — | — | — | — |
| **Total** | — | — | — | — | — |
| Output IGST | — | — | — | — | — |
| Output CGST | — | — | — | — | — |
| Output SGST | — | — | — | — | — |
| Output cess | — | — | — | — | — |
Common reasons for differences:
- Invoice issued in month M but accounted in month M+1 (timing difference)
- Credit / debit notes issued or accounted with a lag
- Advances received but not yet invoiced (CGST advance rules — generally no GST on advances for goods; applies to services)
- Reverse-charge supplies recorded as outward in books but not in GSTR-1
- B2C aggregated reporting in GSTR-1 vs invoice-wise in books
Section B — ITC reconciliation
| Particular | Books | GSTR-2B (auto) | GSTR-3B (claimed) | Difference | Explanation |
|---|---|---|---|---|---|
| IGST input | — | — | — | — | — |
| CGST input | — | — | — | — | — |
| SGST input | — | — | — | — | — |
| Cess input | — | — | — | — | — |
| **Total ITC** | — | — | — | — | — |
| Less: Ineligible ITC | — | — | — | — | — |
| Less: ITC on exempt / non-business supplies (Rule 42/43 reversal) | — | — | — | — | — |
| Net ITC available | — | — | — | — | — |
Common reasons for differences (books vs 2B):
- Supplier filed GSTR-1 late — invoice flows in next month's 2B
- Supplier reported wrong invoice number or amount
- Recipient missed booking — supplier flow visible but no entry in books
- ITC restricted under Rule 36(4) / Section 16(2)(aa) — only reflected in 2B is claimable
- Reverse-charge ITC (we paid under RCM, can claim ITC same month) — booked but not visible in 2B (2B doesn't pre-populate RCM ITC)
Section C — Tax payment reconciliation
| Cash ledger movement | IGST | CGST | SGST | Cess |
|---|---|---|---|---|
| Opening balance | — | — | — | — |
| Add: Deposits during month | — | — | — | — |
| Less: Set-off in GSTR-3B (own liability) | — | — | — | — |
| Less: Set-off against RCM liability | — | — | — | — |
| Closing balance | — | — | — | — |
Sanity check: Output tax in Section A + RCM tax payable - (ITC utilised + cash utilised) = 0. Any non-zero indicates an error in 3B filing.
Section D — Monthly sign-off
- Reconciliation reviewed by accountant / CFO
- All differences have a documented explanation
- Open items (supplier follow-up, restated invoice, etc.) tracked separately
- Filed working stored in shared drive — accessible if scrutiny arises
| Prepared by | Date | Reviewed by | Date |
|---|---|---|---|
| — | — | — | — |
Why this matters
The GST department reads GSTR-2A / 2B against your GSTR-3B and GSTR-1 algorithmically — mismatches above tolerance levels trigger system-generated notices (DRC-01A, ASMT-10). A documented reconciliation working that shows you understand the difference and can explain it is the first defence. Without it, even legitimate differences get treated as evasion until proven otherwise.
For full GST compliance management including monthly reconciliation, return filing, and annual return / 9C preparation, please reach out via the contact page.