GSTR 2 in Tally ERP 9 + GSTR 2A Reconciliation in Tally

GSTR 2 in Tally

Today we are going to see GSTR 2 in Tally ERP 9 which is the second GST return used for recording GST purchases in tally.

GSTR 1 in Tally used to record sales in tally.

GSTR 2 contains the information about all of your purchases. It means it will be sales for the other parties and that it will be the information of GSTR 1 for the sellers.

This post is also important if you are starting up your business because once all the business starting entries in tally are done, you will have file your GST returns.

I am sure you also have upgraded Tally for GST version otherwise you will not see different GSTRs in tally.

Now, let us see what you are going to learn in this post regarding GSTR 2 in Tally.

What you will learn in this post

  • Different sections of GSTR 2
  • How to load GSTR 2A in Tally ERP 9
  • GSTR 2 matching in Tally ERP 9
  • How to reconcile GSTR 2 in Tally ERP 9
  • How to generate or export GSTR 2 in Tally ERP 9
  • GSTR 2 in Tally ERP 9 – PDF Download

Different Sections of GSTR 2 in Tally ERP 9

GSTR 2 is majorly divided into 6 different sections or parts and it is accurately reflected in Tally as well.

They are:

  1. Returns Summary
  2. Particulars which includes different types of transactions such as B2B invoices, credit/debit notes etc.
  3. Total Inward Supplies
  4. Total No. of Invoices
  5. Reverse Charge Liability to be Booked – including GST reverse charge entries in tally.
  6. Advance Payments

Entire GSTR 2 consists of above 6 parts of which the most important is Returns Summary and Particulars which show all the transactions.

Even if you have passed multiple tax invoice in tally with GST i.e. different GST rates for different items in one invoice, tally will separate it for you in GSTR 2.

We can also see all of the purchases in profit and loss account in tally, which we see in GSTR 2 but here they are shown so we can see GST tax status and what is the exact amount.

You can see it in the image below.

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Even e-commerce transactions will appear as well in this return if you have done the e-commerce accounting entries with GST in tally along with TCS entries for GST in Tally for e-commerce transactions.

Now, let us see how we can load GSTR 2A in Tally.

How to load GSTR 2A in Tally ERP 9

You can download the GSTR 2A from the GST dashboard inside the GST portal. Once you have downloaded the GSTR 2A, you can easily import it into your Tally.

You have to go to GSTR 2 in Tally. Following are the steps where you can find it in Tally.

  • From Gateway of Tally, go to Display.
  • Then in the Display Menu, select Statutory Reports.
  • Select GST from the Statutory Reports menu.
  • Finally, choose GSTR 2 from the GST Reports menu.

Now, you will see an option called Load File on the right hand side green bar. You can also press ALT + L to select this option which is the tally shortcut for loading GSTR 2A in Tally from GSTR 2.

  • Click on Load File option and you will see a small window for File Location and File Name.

"Using

  • Enter the location of your file and all the files relating to GSTR 2A in that location will appear in the Tally.
  • Select the file which you have just downloaded. You can see the GSTIN displayed and can also select the file on the basis of that.
  • Press Enter and the selected file will be loaded in tally.

You will see transactions in two different colours. Blue and Black.

Blue ones are loaded from GSTR 2A while the black ones are of the GST purchase entries in tally by us.

Please note that GST Purchase Orders in Tally will not be reflected in GSTR 2 because it is still an order and not a valid invoice.

Also if your TDS is deducted in any GST transaction and it is related to purchases, it will show up here if you have done the TDS entries in Tally correctly.

Now, we have to look at the transactions, match them and reconcile them to finally generate GSTR 2 from our Tally.

GSTR 2 Matching with GSTR 2A

GSTR 2 matching means to match the transactions that we have downloaded in the form of GSTR 2A or from the GST portal.

In other words, after we have loaded our GSTR 2A in Tally, we have to look at the transactions that are not reconciled automatically and match them manually.

Basically, the automatic reconciliation will not be complete if the data in GSTR 2A and our data in Tally is not the same.

There can be many reasons for the difference in the data between GSTR 2A and GSTR 2. Some of them are:

  1. Difference in invoice amounts
  2. Difference in GST amounts
  3. Eligibility of Input GST

Other than the above reasons, there can be minute errors but because of all the software we are using, they are eliminated.

Here is how you can match GSTR 2 with GSTR 2A.

After the automatic reconciliation is complete in tally, still there will be transactions which are not reconciled and it will show up differently in tally.

Now, you have to go in each of the transactions and see where is the difference and what is the reason for the difference.

Once you identify the reason which mostly will be from the above 3 reasons that we have already discussed, you can modify the transaction and match it or just reject it.

By this way, you will easily be able to match all the transactions in tally.

Now, let us move on to the GSTR 2 reconciliation step.

How to Reconcile GSTR 2 in Tally ERP 9

We have already seen how automatic reconciliation of GSTR 2 works in tally. Now, we are going to see how manual reconciliation of GSTR 2 is done in Tally.

Once you have passed all the necessary purchase entries, debit-credit notes in tally and all other required accounting entries in tally, our GSTR 2 is ready to be finalised.

Now, in GSTR 2, you will see all the invoices neatly bifurcated and its reconciliation status as well in the last column.

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We have to go into the type of invoices to reconcile the transactions as per the GST portal or GSTR 2A.

You can see the transactions invoice wise or party wise. I recommend you see them invoice wise to avoid any mistakes.

"Invoice

After you select a particular invoice, you can see all the details of the invoice, such as:

  1. Supplier Name
  2. Supplier GSTIN / UIN
  3. Invoice No.
  4. Invoice Date
  5. Total Invoice Value
  6. Place of Supply
  7. Reconciliation Status
  8. Taxable Value
  9. GST Values
  10. Cess Values
  11. ITC Values

Usually, we have to check 3 things. Invoice Value, GST Values and ITC Values. If they all are correct, we can set the reconciliation status to Accepted.

GST tax values will be the same in return as we see in balance sheet in tally. Also, even if you have done GST tax payment entries in tally, it will not be reflected in this return.

And, the reconciliation will be complete.

There are different types of reconciliation statuses that we can set depending upon the situation.

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They are:

  1. Accepted
  2. Modified
  3. New
  4. Pending
  5. Rejected
  6. Rejected by GST

Accepted simply means that you have accepted the figures as per the GSTR 2A or the GST portal.

Modified means you have modified the data because it is different than GSTR 2A.

New means it is a new transaction which is still not available on the GST portal but we have completed the entry in tally and so it is reflected in our GSTR 2 in Tally.

Pending is used when the transaction is there in GSTR 2A or the GST portal but you have not received the goods or services yet, so the transaction in reality is pending.

Rejected option is used when someone has accidentally uploaded an invoice with your GSTIN but in reality the transaction has not happened.

Rejected by GST is used when a transaction has been rejected by the GST portal for various number of reasons.

Once you have set the correct status, you can save the return and finally export the data from tally to upload it on the GST portal.

This is what we are going to look up next in our post.

How to Generate or Export GSTR 2

Finally, after the GSTR 2 is reconciled and everything is included in the return, we are ready to export it.

Exporting GSTR 2 from tally is very simple. With just a click of a button, you can export or generate GSTR 2 from Tally ERP 9.

But, before you export the GSTR 2 from Tally, there is one little thing that you need to see and it is very important.

It is called the Returns Summary. Look at the picture below and you will know why it is very important.

"Returns

Returns Summary as the name suggests will show you:

  1. Invoices included in the returns along with:
    1. Ready for Returns
    2. Mismatch of Information
  2. Not included in the returns due to incomplete information – like not entering the e-way bill in tally.
  3. Not relevant for returns – like GSTR 1 transactions or due to incomplete HSN/SAC details provided.

As a matter of accuracy, I recommend you check all the invoices which are included in the returns. Just the amount and party name.

After you have checked the invoices in the returns summary, it is time to finally export the GSTR 2 return out of tally so that we can upload it to the GST portal.

Click on Export Return option or simply press CTRL + E to export it.

Select the option – Excel or JSON format. I recommend JSON so that you can directly upload that JSON file on the GST portal. No need to use the GST Offline tool.

"Exporting

Press Enter and GSTR 2 will be exported in either JSON or Excel file format depending upon what you have selected.

Congratulations! You have successfully prepared, reconciled, checked and exported GSTR 2 from Tally ERP 9.

This is no small thing. Be happy about it, okay! 🙂

This is it for the GSTR 2 return in Tally. Below is the video explaining the entire post. Just the same thing in the video format.

GSTR 2 in Tally ERP 9 – With Export & Reconciliation in Tally – Video

The video will be available soon.

GSTR 2 in Tally ERP 9 – With Export & Reconciliation in Tally – PDF

The PDF will be available soon.

Conclusion

If you have read this far, I am sure you must have learnt a lot about GSTR 2 as well as GSTR 2A in Tally.

In summary, we have understood the following things about GSTR 2.

  • Different sections of GSTR 2 Return
  • Loading GSTR 2A in Tally
  • Matching GSTR 2 with GSTR 2A
  • Reconciling GSTR 2 in tally – manually and automatically
  • Generating or exporting GSTR 2 from Tally

I think now almost nothing is left about GSTR 2 in tally and I really hope you will be able to generate GSTR 2 using this knowledge.

Remember one thing, a valid GST invoice in tally is required so that transaction is reflected at appropriate places in GSTR 2.

But still, if you have any questions, ask them in the comment section below. 

I reply to each and every comment.

You can learn tally in detail with tally notes and tally notes in Hindi also. 🙂

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