GSTR-3B vs 1 Comparison Report

Learn the comparison of GSTR-3B vs 1

Basics of Reconcilliation

Why is the reconciliation required?

It is important to reconcile form GSTR-3B and Form GSTR-1 on account of the following reasons:

  • The total GST collections disclosed at the end of the year 2017-18 showed a mismatch of several thousand crores. GST authorities have issued show-cause notices to a large number of taxpayers asking them to reconcile the total of sales disclosed in the GSTR-3B summary return and the detailed GSTR-1 return.

  • Reconciliation ensures that no invoice is omitted or recorded more than once in either of the returns.

  • This ensures a taxpayer arrives at an accurate amount of output tax payable on the sales made in a period.

  • Any late declaration of GST liability can also attract interest.

  • Reconciliation would also help the Government to allocate the right share of tax revenue to the concerned states. This reconciliation is specifically useful to identify any errors that have been made when entering the details of integrated taxes while filing GSTR-3B.

  • GSTR-1 forms the base for the recipients of supplies to claim input tax credit while filing their returns. Hence, a timely and accurate declaration in both GSTR-1 and GSTR-3B is necessary, to avoid hassles with recipients at a later date, and also ensure that only genuine input tax credit can be claimed.

Reconciliation at the time of filing of Annual Return:

At the time of filing an Annual Return in Form GSTR-9, a reconciliation of outward supplies is a must to ensure that the details disclosed match the details disclosed in GSTR-1 and GSTR-3B, across all months. Details of tax paid during the year need to be mentioned as well and this must tally with the total taxes disclosed and paid in GSTR-3B. Therefore, it is important that GSTR-1 and GSTR-3B match as the return-filing system is integrated and a mismatch between the same could result in improper disclosure in the annual return.

Reasons for mismatches in GSTR-3B vs GSTR-1

The following are the reasons for the mismatches in GSTR-3B vs GSTR-1:

  • Reporting of supplies under the wrong table in GSTR-3B, but correctly reporting the same when declaring it invoice-wise in GSTR-1. For example: Reporting zero-rated sales correctly in Table 6A of GSTR-1, but incorrectly reporting it under Table 3.1(a) in GSTR-3B.

  • Issue of an invoice in a particular month, and issue of a debit or credit note at a later date could lead to mismatches.

  • Inter-state supplies made to unregistered persons omitted in GSTR-3B but declared in GSTR-1.

  • Value of supplies correctly shown but tax paid under the wrong head. For example, IGST instead of CGST & SGST or vice- versa.

  • Supplies that may have been amended after GSTR-1 has been filed. In other words, any change of tax liability between the time of filing GSTR-1 and GSTR-3B.

  • The time difference in reporting of invoices in GSTR-1 and GSTR-3B.

ClearTax Advantage

  • Download GSTR-1 and GSTR-3B anytime across months to start comparing data. Verify GST login once using OTP, and continue to easily update data in a click, anytime and anywhere.

  • Check the difference for every field such as outward tax, outward taxable value, supplies under RCM in both returns, etc.

  • Data comparison at a PAN and GSTIN level is available.

  • Know the differences instantly at a monthly, quarterly, or annual level, to take further action.

  • Showing additions & amendments done in the different months separately.

Guide to use GSTR-3B vs GSTR 1 Comparison Report

Step 1: Login to ClearGST

Login to the Cleartax GST and go to the ‘Reports’ section

Step 2: Select GSTR-3B Vs GSTR-1 Comparison Report

Click on view ‘GSTR-3B v/s GSTR-1 Tax Comparison Report’

Step 3: Pull data from GSTN

Select the ‘Period’ and click on ‘Refresh data from GSTN’ to pull data from GSTN. The yearly data from the GSTN will be fetched after verification via OTP-based Login credentials.

You can also download the report in excel format by clicking on ‘Download report in excel’ to use and share the report in excel form.


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