Guides · GST
GST reconciliation, explained
GST reconciliation is the routine of making sure three things agree: your own records, what your suppliers reported, and what your returns show. Where they disagree, tax and credit go wrong.
What gets matched
On the purchase side, reconciliation compares the input tax credit in your books against the credit the system shows based on suppliers' reporting. On the sales side, it checks that your summary return agrees with your invoice-level statement. The aim is that every figure has a matching source.
Gaps usually come from timing — a supplier reporting in a different period — or from a missing, duplicated, or wrongly-entered invoice.
Why it matters
Unreconciled records put credit at risk: a mismatch can mean credit is delayed or denied until it is sorted out. On the sales side, a gap between the summary and the detail invites questions and correction.
Reconciliation is easier as a habit than as a year-end rescue, because the source records are still fresh and the gaps are small.
How Lekha keeps records reconcilable
Lekha keeps sales invoices and captured supplier bills in one two-sided ledger with the tax fields and source documents attached, so the records you reconcile against the returns are complete and traceable.
Lekha records and tracks; it does not file returns or perform the statutory reconciliation for you — that stays with you and your accountant.
Questions
- What is GST reconciliation?
- The routine of matching your own records against what suppliers reported and what your returns show, so every tax and credit figure has a matching source.
- Why do reconciliation gaps appear?
- Usually from timing — a supplier reporting in a different period — or from a missing, duplicated, or wrongly-entered invoice.
- Why reconcile regularly instead of at year-end?
- Because fresh records make gaps small and easy to fix, while a year-end catch-up means chasing old, cold discrepancies.
This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.