Recently the government has introduced 26AS in a new avatar. 26AS is now not only a tool to monitor your TDS but also an information tool for the government.

You must have experienced how Income Tax and GST (earlier Service Tax and Excise) departments are continuously pressing upon the reconciliation of 26AS with both income tax returns and service tax or excise returns.

Similarly, in very near future Income Tax and GST departments will also ask for matching of GSTR-2A with your Income Tax Returns, your books, and GST returns.

GSTR-2A will be one of the most important weapons in the arsenal of the Income Tax and GST departments while doing the assessments of your clients.

That’s why we say that GSTR-2A = 26AS

Have you included GSTR-2A reconciliation in your GST and Income Tax return filing process for your clients?

This is very important not only in the return filing process but also in doing accounting for your clients.

Try using Digitax G-RECS ITC reconciliation system.

The post Why GSTR 2A is equal to form 26AS first appeared on ITC Reconciliation, GSTR 2A Reconciliation - Digitax Automation.

Role of CFOs and Tax Heads is critical

Essentially, in this new GST regime, the role of CFO has undergone a sea-change and been imposed with significantly more responsibility of being true and correct in relation to tax reporting and compliances. As legislation imposes heavy corrective penalties in case of errors resulting in short payment of taxes or incorrect availing of ITC, the job of CFO has become more challenging.

Challenge of GST reconciliation

Ever-increasing regulatory requirements and with the vast volume of data CFO is getting it increasingly difficult, if not impossible, to manage whole work manually or with traditional spreadsheets. This reconciliation of the ITC data process requires:

• To find the mismatch in the data
• To find the missing entries in the returns filed by various
• To track the returns filed by the vendors.
• To get the timely alterations in the returns filed by the
• Manually editing or adding the data.
• To keep the records of ITC already claimed and pending

One of the recent studies has found that due to this tedious and time-consuming nature of the claim process, 40% of business houses are still grappling with GST compliance.

The only real solution here is the complete automation of the reconciliation process. This will not only eliminate all the above issues but will also enhance overall end-user experience and free up employees for more core responsibilities. With the adoption of advances technology such as direct import of data from the accounting software as well as GSTN portal and seamless integration with the returns filed by various vendors, the overall ITC matching process can shrink to a matter of 2 to 3 hours only. It will not only save the precious productive time but completely wipe off the fear of any future tax or interest liability.

To know more about GST automation solutions, you can contact at support@digitaxindia.com

The post Critical Role of CFOs and Tax Heads in claiming GST Input Tax Credit (ITC) first appeared on ITC Reconciliation, GSTR 2A Reconciliation - Digitax Automation.