GSTR-1 vs SR Recon
A Complete Guide to E-Invoice (GSTR-1) Vs Sales Register Reconciliation
The GSTR-1 return gets auto-populated with the e-invoice data from the NIC / Invoice Registration Portal (IRP). Hence, it is important for every taxpayer to effectively reconcile their e-invoices with the data in the Sales Register periodically for the following reasons:
- To determine the discrepancies between the e-invoice data and the Sales Register and prevent the user from replacing the e-invoice data present on the GST portal. (Note: Replacing an e-invoice on the GST portal will remove the IRN associated with it. Due to this, the GSTR-2A/2B data of your customer will not have IRN details for authenticity)
- To detect and rectify errors in e-invoices and prevent interest and penalties from arising in the future.
By taking only the necessary documents into account, Clear Advanced Reconciliation aids in producing correct recon findings. Please note that documents such as bills of supply and B2C invoices are not considered for the reconciliation.
If you are an existing Clear GST user, skip to the ‘Running the E-Invoice (GSTR-1) Vs Sales Register Reconciliation’ section. If you happen to be a new user, follow the steps given under ‘One-time Account Registration’ and ‘Create a Workspace’ sections before proceeding to reconciliation.
If you are a first time user, register with ‘Clear’ using our web portal or app, by creating a new account using the authorised person’s email address. Follow the below steps-
Step 2: Verify the email ID via link sent on the registered email ID.
Once you’ve created an account, login to the account to add a company and GSTIN details-
- 1.Add the legal name, annual turnover, ERP in use, and products offered by Clear that you’re interested to use.
- 2.By entering these minimal details, you’ve created a workspace.
- 3.After that, you can add GSTINs and respective business names.
Step 2: On the launchpad, select the tile named ‘GST’ to open the GST software.
Step 3: Click on ‘Add GSTINs’
Step 4: Add GSTINs, business name and click on ‘Continue’.
Step 1: Select ‘Reconciliation’ from the menu on the homepage.
Step 2: Choose the ‘E-Inv(G-1) vs SR’ recon option from under the ‘Reconciliations’ tab.
Access the ‘E-Invoice (GSTR-1) vs Sales Register (SR) Recon’ from the GSTR-1 filling page.
Step 3: Select the business and the return period to proceed with the reconciliation.
Pro tip: For subscribers of Ultimate SKU of ClearGST 2.0, this reconciliation can be run at a PAN level to save time.
Step 4: Click on ‘Update Data’ to download / import the relevant data to run the reconciliation.
Step 5: Click on ‘Connect’ and enter the government portal credentials to download the GSTR-1 data from the GSTN portal.
Step 6: Import the Sales Register (If the data has not been uploaded yet).
Pro tip: You can add custom fields as part of your Sales Register data and download the same as part of the Recon Excel report. For example, you can add the voucher number and batch number fields as additional columns as part of the Sales Register data.
Step 7: Once the data has been updated, click on ‘Run Reconciliation’ to launch the recon.
Once the reconciliation is completed, the results are categorised into matched, suggested match, mismatched and missing buckets:
Matched (Exact Match):- This section contains documents where the document details, such as invoice number, invoice date, taxable value, tax value, place of supply, return period, etc., exactly match between the Sales Register and E-Invoice data (GSTR-1 draft).
Suggested Match:- Documents with minor differences in field details will be categorised under ‘Suggested match’. For example, there is a +/- Re.1 difference in the tax value / taxable value.
Mismatched:- Documents with major differences in field details will be categorised under ‘Mismatched’. For example, the taxable and tax value differences are greater than +/- Re.1.
Missing:- This section contains invoices that are missing on either side, i.e. Sales Register or G-1 draft.
You can view a match status-wise summary of recon results in the summary view.
You can download the reconciliation report and execute the reconciliation again by clicking on ‘Download report’ or ‘Run new recon’ on the drop-down menu under ‘Actions’ on the summary-view screen.
A customer-level overview of the reconciliation results is available under the tab ‘Customer view’.
In the ‘Customer view’ mode, you can add remarks in bulk at a customer level by clicking on the icon under the ‘Remarks’ column.
You can click on the ‘Show/hide columns’ option if you wish to view only some specific columns.
You can download customer-level data by selecting a specific client.
You can also apply filters to check the data based on the PAN, GSTIN, etc.
In the document view, you can view the document-level reconciliation results.
Data snapshots including the data source, number of documents, taxable value, tax value,and tax difference are available under the ‘Document view’ tab.
Take action on any individual invoice or invoices in bulk under the ‘Document view’ tab.
You can also check the line item level details from the sales invoices by clicking on the invoice.
Pro tip: Under ‘Document view’, you can add remarks to any individual invoice or in bulk and the same can be downloaded in Excel too.
There are four actions that you will be allowed to take at a document level mark as uploaded (Sales invoice exactly matching with the e-invoice document), delete in GSTR-1, delete in Sales Register (This deletes the e-invoice data from the GSTN portal), and reset action (To erase the action that is already taken).
Mark as Uploaded: You can take this action on the sales documents that are already present on the government portal.
Note: Documents selected as ‘Mark as Uploaded’ will be excluded while saving the documents to the GST portal during the GSTR-1 return filing via Clear GST.
Delete in GSTR-1 (Govt): This action will delete the document present in the GSTR-1 on the GST portal. ⚠️Please use it carefully as it is a non-reversible action.
(For example, you have created an e-invoice that you do not wish to include while furnishing the GSTR-1 return.)
Delete in Sales Register: This action will delete the sales documents present on Clear GST.
⚠️Please use this with caution, as it is a non-reversible process.
A pop-up will be displayed when you click on ‘Delete in Sales Register’ asking you to confirm whether you want to remove the invoices marked as uploaded from the sales register.
Reset Action: You can use this operation to undo any ‘Mark as Uploaded’ decisions made on the sales documents.
Pro tip: From the action items list, you can also download the reconciliation report.
Pro tip: You can use the show/hide column section if you wish to view only specific columns / additional columns as per your convenience.
Pro tip: The ‘Filters’ option under the document-view tab will allow you to put filters on the required sections (For example, the match status, document type, tax values, etc).
Pro tip: Make use of the complete audit trail that is available for all invoices.