You can claim input tax credit (ITC) only for invoices your suppliers have reported, which then appear in your GSTR-2B. GST Reconciliation matches the purchase invoices in your books against the return data, so you can find missing and mismatched invoices before you file GSTR-3B. The same screen can also match your sales invoices against GSTR-1.
Before you start
- Record the period's purchase invoices, with each vendor's GSTIN.
- Either download the return JSON from the GST portal, or connect to the GST portal so SmartLedger can fetch the data for you.
- Each reconciliation counts towards your plan's allowance. If you've reached the limit, you'll see an upgrade prompt.
Start a reconciliation
Go to GST → GST Reconciliation and click + New Reconciliation.
Under Source, choose From File or From GST Portal.
Choose the GSTR Type: GSTR-2 for purchases or GSTR-1 for sales.
For From File, drop the JSON file into Upload GST File (GSTR JSON) and wait for the upload to finish.
The period is read from the file. Only JSON files are accepted.
For From GST Portal, choose the Period (month).
Under Linked GST Portal accounts your account should show as Linked. If it doesn't, click Link GST Portal and verify the OTP.
Click Start Reconciliation.
If something is still missing, such as the file or the period, a note under the button tells you what.
The reconciliation runs in the background. It appears in Reconciliation History as Processing, then Completed.
Review the results
Click View Report on a completed reconciliation, or Continue on one that's still in progress.
The report shows figures such as Entries Processed, Variance Amount, Issues and Avg. Match Rate. The Reconciliation Entries table puts each invoice from the GST return next to the matching entry in your books (SmartLedger.AI), with the Variance, Match Rate and Status. Filter it with All, Pending, Reconciled and Issues.
The statuses you'll see most often are:
- Matched — the invoice agrees on both sides.
- Missing in books — the supplier reported it, but you haven't recorded the bill.
- Missing in GST — it's in your books, but not in the return yet.
- Total value mismatch, Tax value mismatch, GSTIN mismatch or POS mismatch — the invoice is on both sides, but the details differ.
- Manual Match — you matched it yourself.
Fix a mismatch
Click an entry to open Reconciliation Entry.
Under Smart Match, select the closest matching invoice from your books.
The comparison below shows the GST JSON and SmartLedger.AI values side by side: GSTIN, place of supply, invoice number, amounts and tax.
Click Confirm Match (or Update Match for an entry that's already matched).
To undo a match, open the entry and click Remove Match.
What happens next
- For invoices Missing in books, record the purchase invoice, then run a new reconciliation.
- For invoices Missing in GST, ask the supplier to report them in their GSTR-1. Until they do, that credit is at risk.
- The GST Summary's ITC at risk figure and Cash & credit card use your latest purchase reconciliation.
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