BatchWise

GST Reconciliation Service (GSTR-2A / 2B vs Books) | Coordinated through Batchwise

Standalone GSTR-2A / GSTR-2B vs purchase register reconciliation — surfaces missed Input Tax Credit, supplier non-compliance, ITC reversals under Rules 42 / 43, and Section 17(5) blocked credits. Coordinated by Batchwise; performed by a vetted partner under their own credentials. ₹2,999 per period.

Start GST reconciliation → Free 15-min scoping call

What this is

Standalone GST reconciliation — a deep, periodic match of your purchase register (in books) against GSTR-2A and GSTR-2B (auto-drafted ITC statements on the GST portal) plus a Section 17(5) blocked-credit review and Rule 42 / 43 proportionate reversal computation. The service surfaces missed ITC, supplier non-compliance, ineligible ITC claimed, and over-reversed ITC — all with quantified financial impact and recommended remediation paths.

Engagement is routed to a vetted partner — typically a Chartered Accountant or registered tax professional with GST audit experience — who performs the reconciliation, generates the discrepancy report, recommends remediation, and (if required) handles the corrective filings (DRC-03 voluntary payments, GSTR-3B amendments). Batchwise itself does not perform the reconciliation.

When you need this service

  • Quarterly cleanup — businesses self-filing monthly GSTR-1 + GSTR-3B but wanting a periodic external reconciliation to catch what monthly self-review misses.
  • Pre-audit cleanup — before statutory audit, GST audit, or due diligence; reconciliation surfaces issues before auditors do.
  • Pre-GSTR-9 / 9C preparation — annual GST return reconciliation requires deep clean ITC data; standalone reconciliation feeds directly into GSTR-9 preparation.
  • Post-notice response — when a GST officer issues a notice (intimation, scrutiny under Section 61, or assessment under Section 73 / 74) citing ITC mismatch; reconciliation builds the response evidence pack.
  • Supplier non-compliance investigation — when material ITC is showing as supplier-pending in GSTR-2B for multiple months; reconciliation generates supplier-wise risk report for follow-up.
  • Multi-state operations cleanup — businesses with multiple GSTINs needing periodic state-by-state ITC reconciliation.
  • ITC recovery from prior periods — businesses suspecting they\'ve missed eligible ITC from prior periods and want a cleanup before the Section 16(4) time limit expires (currently 30 November of next FY for the previous FY).
  • Section 17(5) review — periodic check that no blocked-credit ITC has been wrongly claimed; common in businesses with mixed personal-business expenses.
  • Rule 42 / 43 finalisation — annual finalisation of common-credit reversal for businesses with mixed taxable + exempt supplies.

What the reconciliation covers

Layer 1 — Invoice-level match (purchase register vs GSTR-2A / 2B)

For each month in scope:

  • Invoice-by-invoice match between your purchase register and GSTR-2A / 2B
  • 4-bucket categorisation:
    • Matched — invoice in books AND in 2A/2B at same value, GSTIN, date
    • In books only — invoice booked but not in 2A/2B (supplier non-compliance, late filer, wrong GSTIN, mismatched detail)
    • In 2A/2B only — invoice in supplier filing but not in your books (missed entry, returned goods not booked correctly)
    • Mismatched — invoice in both but value / GSTIN / date / tax amount differs
  • Quantification — total ITC at stake in each bucket, by IGST / CGST / SGST split

Layer 2 — Supplier-wise risk scoring

  • Each supplier classified by compliance behaviour: compliant / late filer / wrong-GSTIN / non-filer
  • Total ITC value at risk per supplier
  • Top non-compliant suppliers by ITC value (for prioritised follow-up)
  • Recommended action per supplier (chase, withhold payment, escalate)

Layer 3 — Section 17(5) blocked credit review

Category-by-category check of your purchase register for ITC potentially blocked under Section 17(5):

  • Motor vehicles — passenger vehicles for personal use; exception: vehicles used in transport business or driving schools
  • Food and beverages — F&B, outdoor catering, beauty treatment, health services; exception: outdoor catering / event management business
  • Club / health / fitness membership — typically blocked
  • Employee health insurance — blocked except where statutorily mandated
  • Works contract services for immovable property construction — blocked except for plant & machinery
  • Personal consumption — any goods / services for personal use of employees / directors / partners
  • Lost / stolen / destroyed goods / free samples / gifts — ITC blocked
  • CSR expenses — ITC blocked under recent clarifications (subject to Department position)

Quantification of any blocked credit found, with recommended reversal path (typically DRC-03 with interest under Section 50).

Layer 4 — Rule 42 / 43 proportionate reversal

  • Rule 42 — Common credit on inputs and input services used partly for exempt supplies / non-business; monthly reversal calculation per the prescribed formula (T1 to T5 attribution) and annual finalisation
  • Rule 43 — ITC on capital goods used partly for exempt supplies; reversal over 60 months
  • Working paper showing month-by-month reversal computation, finalisation working at year-end

Layer 5 — RCM compliance check

  • Section 9(3) RCM purchases (notified categories: GTA, advocate services, sponsorship, etc.) — verified that RCM was paid in cash AND ITC subsequently claimed
  • Section 9(4) RCM (registered person to unregistered, where applicable) — checked
  • RCM payments reconciled to GSTR-3B Table 3.1(d)

Layer 6 — Time-barred ITC check

  • ITC older than the Section 16(4) time limit — currently 30 November of next FY for invoices of the previous FY
  • Quantification of ITC at risk of expiry; action: claim before deadline; otherwise lost

How the engagement works

  1. Sign up + select service. Sign in; pick "GST Reconciliation".
  2. Pay base fee. Razorpay; ₹2,999 covers one period (default: one quarter, or can be applied to one month or annual depending on your scope choice). Multi-period and multi-GSTIN priced separately.
  3. Upload data. Dashboard checklist: purchase register for the period (with GSTIN, invoice number, date, taxable value, IGST / CGST / SGST split, HSN / SAC), GSTR-2A and GSTR-2B JSON files for each month in scope (downloaded from GST portal), GSTR-3B filed acknowledgments for context, GST cash and credit ledger as on period-end, RCM payment register, exempt supplies value (for Rule 42 / 43 calculation if applicable).
  4. Partner assignment. Vetted partner with GST reconciliation experience is assigned and contact details surface in your dashboard.
  5. Layer-by-layer reconciliation (Days 2–5). Partner runs all 6 layers as detailed above.
  6. Discrepancy report (Day 5–6). Partner shares the comprehensive reconciliation report:
    • Executive summary — total ITC at stake, by category
    • 4-bucket invoice-level match table
    • Supplier-wise risk report
    • Section 17(5) findings
    • Rule 42 / 43 working
    • RCM compliance status
    • Time-barred ITC status
    • Recommended action plan with prioritisation
  7. Your decisions (Day 6–7). You decide on each action: accept the missed ITC claim, reverse the wrongly-claimed ITC via DRC-03, chase suppliers, etc.
  8. Corrective filings (Day 7–10, optional add-on). Partner can handle corrective actions: DRC-03 generation and filing, ITC reversal in next GSTR-3B, supplier follow-up letters, GSTR-3B amendment if required. These are bundled where flagged in scope; complex multi-period corrections may be quoted separately.

Pricing

EngagementPrice (₹)Coverage
Single period reconciliation (1 month)2,9991 month, 1 GSTIN, all 6 layers
Quarterly reconciliation (3 months)4,9993 months, 1 GSTIN, all 6 layers, supplier risk report
Annual reconciliation (12 months)9,99912 months, 1 GSTIN, all 6 layers, full Rule 42 / 43 finalisation
Multi-GSTIN — per additional GSTIN+50% of baseEach additional GSTIN under same PAN
DRC-03 corrective filing add-on+₹999 per challanFor voluntary differential payments arising from reconciliation
Supplier follow-up service add-on+₹2,999Letters / emails to non-compliant suppliers; tracking; escalation
Pre-audit reconciliation packFrom 14,999Annual scope + audit-ready working paper file with cross-references
Multi-state group reconciliationCustom quote5+ GSTINs across states; quoted after scoping

All prices GST-exclusive. Base fee covers reconciliation + discrepancy report + remediation recommendations. Corrective filings (DRC-03, GSTR-3B amendments) are add-ons. Government interest (Section 50) and late fees on any corrective payments are at actuals.

What you get

  • Reconciliation report (PDF + Excel) — all 6 layers with quantified findings
  • Invoice-level match Excel — line-by-line match with status codes for each invoice
  • Supplier risk report — supplier-wise compliance scoring with action prioritisation
  • Section 17(5) findings memo — category-by-category review of blocked credit exposure
  • Rule 42 / 43 working paper — month-by-month reversal calculation + finalisation working
  • RCM compliance summary — RCM-payable vs RCM-paid reconciliation
  • Time-barred ITC schedule — invoices approaching Section 16(4) deadline
  • Action plan — prioritised list of remediation steps with quantified financial impact
  • Audit-trail file — supporting working papers, useful for any subsequent GST audit or scrutiny
  • Partner contact for any post-engagement question or follow-up
  • Dashboard archive — all reports and working papers stored for the lifetime of your account

The marketplace model

Batchwise is a coordination platform, not a tax-filing firm. Every reconciliation is performed by a vetted partner — a Chartered Accountant or registered tax professional with GST audit experience — under their own credentials. The partner takes professional responsibility for the reconciliation work product.

What Batchwise does: dashboard, secure document workspace, partner assignment, payment processing, status tracking, deliverable storage, methodology consistency.

What the partner does: invoice-level matching, all 6 reconciliation layers, supplier risk scoring, blocked-credit review, Rule 42 / 43 working, your-approval workflow, corrective filing execution where in scope, owns the post-engagement relationship.

Common findings worth knowing

Across reconciliation engagements, the patterns most often surfaced — useful even before you engage:

  1. ~5–15% of monthly ITC is supplier-pending in any given month. This is normal — suppliers file at quarter-end. Action: hold ITC in suspense, not in claim.
  2. ~1–3% of ITC has Section 17(5) exposure in services-sector businesses (food, club membership, gifts). Often missed in monthly review. Action: reverse via DRC-03 with interest.
  3. Rule 42 reversal is rarely calculated correctly month-over-month in businesses with both taxable and exempt outputs. Annual finalisation often surfaces materially under-reversed ITC.
  4. RCM under Section 9(3) is forgotten on small recurring payments — GTA, advocate services, sponsorship to non-corporates. ITC consequence: ITC cannot be claimed until RCM paid in cash.
  5. E-invoice non-compliance — outward supplies above ₹5 cr aggregate turnover threshold not generated through IRN. Now an MCA scrutiny + e-invoice mandate enforcement priority.
  6. Time-barred ITC — Section 16(4) caps the ITC claim window. Many businesses lose 1–3% of annual eligible ITC simply by missing the deadline.

Related reading

Authoritative sources

How to start

  1. Sign up via Google or magic-link email.
  2. From the dashboard service catalog, select GST Reconciliation.
  3. Pay ₹2,999 (single month) or ₹4,999 (quarter) or ₹9,999 (annual) via Razorpay.
  4. Upload purchase register, GSTR-2A / 2B JSONs, GSTR-3B acknowledgments, and supporting documents per the dashboard checklist.
  5. Partner completes reconciliation within 5 working days; discrepancy report and action plan delivered for your decisions.

Or book a free 15-minute scoping call if you have multi-GSTIN scope, post-notice investigation context, or annual cleanup with material ITC exposure.

Frequently asked questions

What is GSTR-2A vs GSTR-2B?

GSTR-2A is a dynamic auto-drafted statement showing all inward supplies reported by your suppliers in their GSTR-1 / GSTR-5 / GSTR-6 / GSTR-7 / GSTR-8. It updates continuously as suppliers file their returns. GSTR-2B is a static auto-drafted statement generated on the 14th of each month, freezing the eligible ITC for that month — this is the figure used for ITC claim in GSTR-3B. The difference matters: GSTR-2A is informational and dynamic; GSTR-2B is the auto-populated ITC limit (eligible vs ineligible bifurcation, supplier filing status, IGST vs CGST + SGST split). Reconciliation is performed against both, but ITC claim discipline is anchored to GSTR-2B.

Why does my ITC in books differ from GSTR-2A / 2B?

Common reasons: (1) supplier hasn't filed GSTR-1 yet, so the invoice is in your books but missing from 2A / 2B; (2) supplier filed GSTR-1 with mismatched invoice number or date or amount; (3) supplier filed under wrong GSTIN; (4) supplier reported the invoice in a later period; (5) you missed booking the supplier invoice; (6) ITC blocked under Section 17(5) was wrongly claimed in books; (7) ITC reversal under Rule 42 / 43 (proportionate to exempt supplies / non-business use) was missed in books; (8) RCM ITC was claimed in books before paying RCM under Section 9(3) / 9(4); (9) credit notes received from suppliers not booked. The reconciliation surfaces all these systematically.

How does this service differ from monthly GST return filing?

The Monthly GST Return Filing service includes GSTR-2B reconciliation as part of preparing the month's GSTR-3B. This standalone service is for: (a) periodic deeper reconciliation across multiple months (typically quarterly or annual cleanup); (b) businesses self-filing monthly GST returns who want a periodic external reconciliation; (c) pre-audit or pre-GSTR-9 cleanup; (d) post-GST-notice investigation; (e) supplier non-compliance recovery (chasing suppliers who haven't filed). The standalone reconciliation goes deeper: invoice-level matching across 12+ months, supplier risk scoring, missed-ITC quantification with action paths.

What is the difference between Rule 42 and Rule 43 ITC reversal?

Both are proportionate ITC reversal mechanisms under the CGST Rules. Rule 42 covers ITC on inputs and input services partly used for exempt supplies + non-business purposes; reversal is calculated monthly per a prescribed formula and finalised annually. Rule 43 covers ITC on capital goods used partly for exempt supplies; reversal is over the useful life (60 months) of the capital good. Both rules require detailed working papers — common errors include: incorrect classification of "common credit", missing the annual finalisation under Rule 42, applying wrong useful life under Rule 43, mixing inputs / input services / capital goods. The vetted partner builds the reversal working as part of the reconciliation.

Does this surface supplier non-compliance for recovery?

Yes. The reconciliation generates a supplier-wise risk report categorising suppliers by: (a) compliant — invoices reported correctly and on time; (b) late filers — invoices appear in later months than booked; (c) wrong-GSTIN — invoices reported under a different GSTIN; (d) non-filers — invoices not reported at all. For non-compliant suppliers, the report includes an action plan — typically: chase the supplier to amend in next GSTR-1; in case of chronic non-compliance, withhold further payments until compliance; in extreme cases, escalate via Form GST DRC-04 (intimation of payment by supplier). Section 16(2)(c) requires supplier filing for ITC eligibility; chronic non-compliance becomes a recovery issue.

How is Section 17(5) blocked credit identified?

Section 17(5) of the CGST Act blocks ITC on specified items: motor vehicles for personal use (with limited exceptions for transport business / driving school), food and beverages (with exceptions for outdoor catering business / event management), club membership, employee health insurance (with exceptions for statutorily mandated coverage), works contract services for construction of immovable property (with exceptions for plant and machinery), goods or services used for personal consumption, lost / stolen / destroyed goods, etc. The vetted partner reviews your purchase register category-by-category and flags any Section 17(5) ITC that may have been claimed in books. Reversal via DRC-03 is the typical remediation path.

Does Batchwise file the corrections?

No. Batchwise coordinates; a vetted partner — typically a Chartered Accountant or registered tax professional — performs the reconciliation, identifies discrepancies, and recommends remediation paths (DRC-03 voluntary payment, follow-up with suppliers, ITC reversal in next GSTR-3B). The partner can also handle the corrective filings (GSTR-3B amendments, DRC-03 generation, supplier follow-up letters) under their own credentials — these are bundled into the reconciliation engagement scope where flagged.