The GST Council, in its 39th meeting held on 14th March 2020, had recommended to adopt and implement linking of GSTR-1 & GSTR-2A with GSTR-3B. As we know GSTR-2A is a dynamic return, so to solve this issue, GSTR-2B has been introduced.
1) What is GSTR-2B?
Ans: – It is a static form of GSTR-2A, which is auto-drafted Input Tax Credit (ITC) statement generated for every recipient, on the basis of the information furnished by their suppliers, in their respective Form GSTR-1 & 5 and Form GSTR-6 filed by ISD. It will help in reduction in time taken for preparing return, minimising errors, assist reconciliation & simplify compliance relating to filing of return.
Importance and benefits of GSTR 2B
The data in GSTR-2B is reported in a manner that allows taxpayers to conveniently reconcile ITC with their own books of accounts and records. It will help them in easier identification of documents to ensure the following:
- The input tax credit is not availed twice against a particular document.
- The tax credit is reversed as per the GST law in their GSTR-3B, wherever required.
- GST is correctly paid on a reverse charge basis for the applicable documents, including import of services.
- The statement indicates the respective tables or column of GSTR-3B under which the input tax credit of an invoice/debit note must be taken.
2) Which documents/details will GSTR-2B contain?
Ans: – i) It will contain all documents filed by suppliers/ISD in their Form GSTR-1, 5 & 6 between 12th day of preceding month to 11th day of current month. Thus, statement generated on 12th of August will contain data from 12th July 2020 to 11th August 2020.
Thus, it is very important to note that, data should not be directly picked from GSTR-2B and filed in GSTR-3B, date of invoice should be carefully checked so that credit is not taken twice or has been missed. Cut of dates advisory is given in GSTR-2B
E.g.: – Following invoices are filed by supplier in GSTR-1/5 for the July 2020.
|Date of Invoice||GSTR-1/5 filed on||Will reflect in GSTR-2B of Month||To be taken in GSTR-3B of Month|
|14/07/2020||11/08/2020||July 2020 (generated on 12th Aug ’20)||July 2020|
|14/07/2020||13/08/2020||Aug 2020 (generated on 12th Sept ’20)||Can be taken in July 2020, subject to 10% criteria.|
|15/03/2020||11/08/2020||July 2020 (generated on 12th Aug ’20)||Verify if credit has been taken in GSTR-3B of March’20|
- ii) It also contains information on imports of goods from the ICEGATE system including data on imports from Special Economic Zones Units / Developers. (This will be made available in GSTR-2B from 12th September 2020 onwards)
Reverse charge credit on import of services is not part of this statement and need to be entered by taxpayers in Table 4(A) (2) of FORM GSTR-3B.
Email / SMS to taxpayer will be sent informing them about generation of GSTR-2B.
How to access GSTR-2B on the GST portal?
The following are the steps to access GSTR 2B, mostly available from 12th August 2020:
Step 1: Log in to the GST portal.
Taxpayer must use his/her credentials to login.
Step 2: Navigate to the ‘Returns Dashboard’.
Step 3: Select the relevant tax period.
Select the month and year.
Step 4: Click on the ‘GSTR-2B’ tab.
Step 5: Click on the ‘Download’ button to save the statement on your system.
Comparison of GSTR-2A with GSTR-2B
GSTR-2A and GSTR 2B can be compared as follows:
|Points of Comparison||GSTR-2A||GSTR-2B|
|Nature of Statement||Dynamic, as it changes from day to day, as and when the supplier uploads the documents.||Remains static or constant, as the GSTR-2B for one month cannot change based on future actions of the supplier.|
|Frequency of Availability||Monthly||Monthly|
|Source of Information||GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8, ICES||GSTR-1, GSTR-5, GSTR-6, ICES|
|ITC on Imports||Contains details of ITC of IGST available on imports (overseas and inward supplies from SEZ units/developers) flowing in from ICEGATE system to GST system||Contains details of ITC available on imports as obtained from ICEGATE system (Not made available)|
How will GSTR-2B help in better Input Tax Credit (ITC Claim)?
When it comes to ITC claims, reconciliation of purchase invoices and arriving at ITC amount considering actual and provisional claims are key. With introduction of GSTR 2B, all processes around ITC are impacted, albeit a positive one. While the taxpayers will continue to declare the ITC amounts in GSTR 3B, the new statement GSTR 2B can be used as basis for computation as it consists of additional details and also will be static
- Identifying ITC not available
Against every document, additional information will be available which indicates whether ITC is available or not-available. The input tax credit shall be indicated to be non-available in the following scenarios:
- a) Invoice or debit note for the supply of goods or services or both where the recipient is not entitled to an input tax credit as per the provisions of sub-section (4) of Section 16 of CGST Act, 2017. (Time limit for ITC claim: 30th September of the year following the financial year or date of filing annual returns whichever is earlier)
- b) Invoice or debit note where the Supplier (GSTIN) and place of supply are in the same State while the recipient is in another State.
- Filing Details of Supplier
GSTR 2B will include invoices of only those filing periods where returns have been filed. And these details i.e. the filing period and date of filing will also be made available in GSTR 2B. With this information previously taken provisional ITC, if any, can be checked and reconciled.
For ITC eligibility, there are some internal checks like use of business, non-business, nil etc. which will not be in GSTR-2A or GSTR-2B data. Thus, companies need to further keep a track of invoices claimed provisionally earlier but are appearing in current GSTR-2B, so that double claim is avoided.
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