What is 2A reconciliation under GST regime?
Under the new Central Tax which is being issued by CBIC a few days back has made certain amendments in the CGST Rules. One of the important amendments in the Rules is to allow the credit to the recipient only in case the corresponding supplies have been reported in the GSTR-1 by his suppliers. This move is in line with the amendment made in the return format which will be effective from 1.4.2020. The main reason behind making this amendment is to lower the cases of fake invoices where fraudulent credits have been availed to deceive exchequer. The taxpayers under the new rule must reconcile their data regularly with the data declared by its vendors too. The return filing and processing will be semantically automated and the GST returns are inter-linked.
Before filing the GST returns it is important to reconcile the GSTR 3B with GSTR 2A so that you don’t have to pay any kind of penalty or demand notices from the department. In case a supplier files GSTR – 1 in any of the particular month with the disclosure of the sales, then the corresponding details need to be obtained in GSTR – 2A of the recipient.
For the businesses filing the return can prove to be a complicated tasks, especially post the amendments in CGST Rules, therefore more businesses outsource the services to accounts payable services providers who are experts in managing your tax more systematically.
By using accounting and taxation services, which is the process of outsourcing accounting service and taxation to a company outside of your business, the business owners can capitalize on benefits that previously were not known to them.
Advantages of outsourced accounting services:
• Businesses can have increased profitability by outsourcing accounting and taxation related work to the firms who are highly specialized in it. As a business owner, you will be able to spend more time with your customers and can offer them a higher level of service.
• You don’t need much staff internally who can manage the internal accounting functions. Rather you can make significant reductions in the overall employment costs like salaries, payroll taxes, benefits, training etc by outsourcing the work to an outsource accounting services provider.
• The ability to offer higher quality accounting information is found in the professionals to whom you have outsourced the work. Working with accounting professionals will deliver reliable and accurate information which in turn will help in taking improved business decisions timely.
These are just some of the benefits out of many which you can have by choosing outsourced accounting services, you will get the best professional assistance that keep your business focused on your critical objectives. So get the best guidance by hiring Finsmart Solutions which is a leading accounting outsourcing company in India offering the best and trusted accounting and bookkeeping services to its clients.