Reconciliation & Refunds
Maximizing Liquidity in the AI-Era With the transition to GST 2.0 and the mandatory Invoice Management System (IMS) in 2026, the era of manual reconciliation is over. At Diwakar and Associates, we provide a technology-driven framework to reconcile your credits and process your refunds, turning "Tax Assets" back into "Working Capital."
Why, When & Where is it done?
- Why : To prevent the loss of ITC due to vendor non-compliance and to recover "Blocked Funds" from export taxes or inverted duty structures. Proper reconciliation is now a prerequisite for filing a valid GSTR-3B.
- When: Reconciliation is a monthly ritual (pre-filing), while Refunds (Form RFD-01) can be filed monthly or quarterly within two years of the relevant date.
- Where: Managed via the GSTN portal’s IMS dashboard and specialized reconciliation software at our office.
- What is it Done: A meticulous comparison of purchase registers against supplier filings, followed by the preparation of refund statements (Statement 1, 3, or 5) and CA-certified declarations.
Applicability Limits (The Numbers)
IMS Actions
Taxpayers must take action on invoices (Accept/Reject) by the 14th of every month to ensure an accurate GSTR-2B is generated.
Refund Threshold
The minimum refund claim amount must be ₹1,000 per tax head.
CInverted Duty Structure
Applicable to manufacturers where the tax rate on Inputs is higher than the tax rate on Output Supplies (e.g., Fabric at 12% vs. Garments at 5%).
Provisional Refunds
Exporters and SEZ suppliers are eligible for a 90% provisional refund within 7 days of the acknowledgement (RFD-02).
How we provide this service at Diwakar and Associates
We optimize your tax liquidity through a specialized four-stage workflow:
1
IMS-Led Reconciliation
We manage your Invoice Management System dashboard. We identify "Risky Suppliers" who haven't paid taxes and mark those invoices as "Pending," ensuring you only claim ITC that is legally "safe" to prevent future notices.
2
Export Refund Specialization
For exporters, we manage the entire LUT (Letter of Undertaking) filing and RFD-01 process. We reconcile Shipping Bills with GSTR-1 data to ensure the ICEGATE system triggers your IGST refunds automatically.
3
Inverted Duty Calculation
We use the revised Rule 89(4B) formulas to calculate the maximum eligible refund for manufacturers, ensuring that "Net ITC" is accurately captured and "Adjusted Total Turnover" is correctly reported.
4
Liaison & Recovery
If a refund is stuck in a "Deficiency Memo" (RFD-03), we represent you before the GST Officer. We provide the necessary documentary evidence to convert "Pending Claims" into "Payment Advices" (RFD-05).
The Impact
We perform a three-way match between your Books, GSTR-2B, and the new Invoice Management System (IMS), while managing complex refund claims for exporters and inverted duty structures.
Our Commitment to You
Accuracy is the cornerstone of our practice. At Diwakar and Associates, we commit to a "Zero-Leakage" policy. We promise to track every single invoice and every pending refund application until the money is in your bank. Our goal is to ensure that your business never loses its competitive edge due to stuck tax credits or clerical errors in the GST portal.
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