GST input tax credit reconciliation with a supplier mismatch report

Shree Balaji Auto Components buys steel, castings, packaging and job work from about 85 suppliers. In the April–June quarter its purchase register shows 1,140 invoices and ₹4.60 crore of input tax credit (ITC). The GSTR-2B statements for the same three months show only ₹4.21 crore. Nobody has explained the ₹39 lakh gap, and the GST department has sent a scrutiny letter asking the company to justify the credit it claimed in GSTR-3B.

The accounts team is two people. They have been ticking invoices by hand in a printout and they gave up at invoice 300. The CFO, Mrs Kulkarni, wants three things by month end: - a reconciliation that puts every invoice into one bucket: matched, matched with a difference, in books but not in 2B, or in 2B but not in books; - the ITC that is genuinely at risk, including credit that must be reversed or was never allowed; - a list of suppliers to chase, with the amount and the exact problem for each.

Real company data is confidential, so you will build a realistic synthetic purchase register and 2B extract in task 1, with the kinds of errors that really happen: typos in GSTIN, invoice numbers written differently, suppliers who filed late, and invoices booked in the wrong month.

Done looks like an Excel workbook that a second person can re-run next quarter, a two-page mismatch report and a supplier follow-up sheet. The CFO will accept it if every rupee of the ₹39 lakh gap is explained and the at-risk figure is supported invoice by invoice.