GST (Goods and service tax) return is nothing but a form, where the taxpayers who are registered under the GST law must file the GSTIN.
In this article, we will explore GSTR 2, 2A, and 2B with their due dates and penalty.
Exploring GSRT 2, 2A, and 2B
GSTR 2
The GSTR 2 is the monthly which permits the registered taxpayers to declare and outline the information of inward purchases of taxable goods and/or services. GSTR 2 return represents the purchases that are made by you, which is nothing but return inward supplies.
Regardless, one of the currently suspended GST returns is GSTR 2, since 2017 September via a modification to the CGST Rules. In this place, the combined version of GSTR 2 and GSTR 3 is GSTR 3B.
As GSTR 2 has suspended, let’s skip to GSTR 2A.
GSTR 2A
GSTR 2A is an automated return generated for a taxpayer from the GSTR 1 seller. At present, from the GST portal, the GST 2A has been removed since Jan 2022. GSTR 2A shall be available until Dec 2022.
So what might be GSTR 2A?
What is GSTR 2A?
GSTR 2A is the dynamic tax return associated to purchase, whereas for each business it is generated automatically. Once the seller attempts to file GSTR 1, those data are captured on GSTR 2A. GSTR 2A will extract the data of purchased goods and services/goods or services in the given month from the merchant’s GSTR 1. As the registered GST consumer, you may direct to the GSTR-2A for the information on ITC while filing both GSTR 3B and GSTR 9. From Aug 2020, for preparing GSTR 3B, taxpayers must direct to GSTR-2B, which is static of the GSTR-2A version.
Here are the list of GST returns, where the GSTR 2A is auto-populated for the counterparty/vendors
Taxpayers don’t need to file GSTR 2A. Because GSTR 2A is not an editable return. It is a read-only document, with a list of every invoice from the different vendors during the month. With this type of return, you can view and download a copy of it.
What happens in GSTR 2A, if there is a delay or failure in uploading the invoice?
If there is a delay or failure in uploading an invoice, then that respective invoice will not display in GSTR 2A, for the particular tax period. So, the consumer might have to convey this to the respective suppliers or vendors notice to upload the lacking invoices on time. From August 2020, each consumer must direct to GSTR-2B rather than GSTR-2A to understand the ITC available to them for a tax duration.
Regardless, till December 31st, 2021, the buyer can claim ITC on the provisional basis in their respective GSTR 3B, up to 5% qualified tax credit occurring in GSTR-2B towards the invoices not seen in GSTR-3B beneath the CGST Rule 36(4).
However, from Jan 1st, 2022, claiming such 5% additional ITC or provisional ITC is not attainable, because of the amendment made to CGST rule 36(4). A consumer can claim ITC only for appearing in GSTR-2B by virtue of Section 16(2)(aa) of the CGST Act.
GSTR 2B
GSTR 2B is an auto-populated statement (i.e., system-generated statement) for regular taxpayers, that will reflect your business input tax details. This statement is in the process from the tax period of August 2020.
What is GSTR 2B?
This GSTR 2B, offers both the eligible and ineligible ITC (Input tax credit) for every month, equivalent to GSTR-2A but remains the same for a period. In simple terms, we can say, on the GST portal — whenever a GSTR-2B is accessed for a month, the information inside it will remain constant for the next succeeding modifications by their suppliers in the latest months.
The GSTR 2B return is accessible for SEZ, casual and normal taxpayers. Every recipient can generate GSTR-2B, based on GSTR-1, GSTR-5, and GSTR-6 provided by the respective suppliers.
The generated statement will clearly state the document-wise information of ITC eligibility. The ITC details will be covered from GSTR 1 filing date before the month (M-1) up to the filing date of GSTR-1 for the present month (M).
For example, GSTR 2B return generated for July 2021 will have records filed by their respective suppliers from 12 a.m. on 12th July 2021 up to 11:59 p.m. on 11th August 2021. The statement for July 2021 will be forged on 12th August 2020.
Benefits & Importance of GSTR 2B
The information on GSTR 2B is documented, which permits taxpayers to easily reconcile ITC (Income Tax Credit) with their own books of records and accounts. It will assist them in comfortable document identification to confirm the following:
- The ITC will not be availed for two times against the particular document
- Whenever there is a need, the tax credit is inverted as per the GST law in the GSTR-3B return
- GST is paid exactly on a reverse charge base including import of services, for the applicable documents.
- The statement denotes the GSTR-3B’s respective tables or columns beneath, which the ITC of a debit/invoice note must be taken
Why are GSTR 2A and 2B reconciliation Important?
Government Notices:
If there found an ITC mismatch between GSTR 2A/GSTR 2B and GSTR 3B, the authorities of GST are sending notices to the respective taxpayer by demanding the reason behind it. If the particular taxpayer fails to submit the right document and correct it within the next seven days, then they must expend various plus interest.
ITC ineligibility:
If a business person fails to register a GST return, then that particular business person is ineligible for the ITC. Also, they must pay the penalty on the entire share amount that is required to be paid under GST. This part is considered every enterprise’s considerable impact, who tends to use raw material tax credits and inputs to reduce the tax amount, that they must pay.
Difference between GSTR 2A and GSTR 2B | Tabulation & Infographic
GSTR 2A Vs GSTR 2B | Infographic
GSTR 2A Vs GSTR 2B | Tabulation
| GSTR 2A | GSTR 2B |
|---|---|
|
In GSTR 2A, the government records ITC on the preceding period, which is submitted, once the supplier files the GST return for any earlier period. |
In GSTR 2B, the ITC is reflected for the current month once the supplier submits the GST return from an earlier time period. |
|
The GSTR 2A is not static in nature. GSTR 2A is dynamic. Whenever the supplier uploads their data, it gets modified. |
GSTR 2B is a static tax return. It stays constant even when the supplier does any modification to the tax return. |
|
GSTR 2A data sources are -- GSTR 1/IFF, GST – TDS, GSTR 5 (Non-Resident), GSTR 6, and GSTR 8. |
GSTR 3B data sources -- GSTR 1/IFF, GSTR 5, and GSTR 6. |
|
In GSTR 2A, the recorded data keep on changing. |
In GSTR 2A, the recorded data stay steady and consistent. |
|
For instance: When you file GST returns in July, then the ITC will be reflected in April in GSTR 2A. |
For instance: When the GSTR-1 of April is filed in July, then the ITC will be reflected in July for GSTR – 2B. |
GSTR 2, 2A, 2B | Frequently asked questions
Is GSTR-2 applicable now?
The GSTR 2 return is currently suspended tax return since September 2017 tax period. Thus, GSTR 2 has lost its importance.
What are GSTR 2A and GSTR 2B?
GSTR 2A is a dynamic tax return, which is related to purchase. It is auto-generated by the GST portal. At present, from the GST portal, the GST 2A has been removed since Jan 2022. GSTR 2A shall be available until Dec 2022.
GSTR 2B is the new static document, which is generated on a monthly basis, for regular taxpayers (whether they might opted or not opted into the QRMP scheme)
What is the difference between GSTR 2A and GSTR 3B?
With the help of GSTR 3B, the respective user can enter the IC information and summary output, so that the net tax liability can be estimated and can be paid. Before you file GSTR 3B, it is a must and more significant to review the GSTR 2A form. Because it displays the information regarding the invoices uploaded by the respective supplier.
Can I download GSTR 2B for a full year?
If you want to view and download the Form GSTR-2B return statement for the respective tax period, Login to the GST portal, go to Services > Choose Returns > Pick File Returns > GSTR 2B Tile.
By following this step, you can view and download GSTR 2B for the whole period.
When was GSTR 2 suspended?
GSTR 2 return is generally filed by business’s normal taxpayers who registered under Goods and Service Tax. This GSTR 2 return filing was suspended, in Sep 2017.
How to view GSTR 2A?
To view GSTR 2A,
- Login to the GST portal
- Choose Services > Returns > Returns dashboard
- Select the Financial Year and Return Filing Period as per your need from the drop-down menu
- Now choose the View button under GSTR 2A return
- Now you can able to see the GSTR 2A Auto drafted details
- Under Part A – Click B2B Invoices. As per the suppliers’ returns, the data will be auto-filled on the respective page.
- Click GSTIN. You can see the respective invoices updated by the suppliers.
- The tab- Amendments to B2B Invoices – will tend to display the modifications made by the suppliers in either their GSTR 1 or GSTR 5.
- Followed by the above, to notice data of the amended credit/debit notes, choose Amendments to Credit/Debit Notes available under Part A.
- Similarly, you can also see the ISD Credits available under Part B.
- Further, you can view the TDS Credits by choosing the tab, which is under Part C.
- Likewise, you can view the TCS Credits by choosing the tab under Part D.
- Part D holds the details on the import of goods from overseas.
How to Download GSTR 2A?
- On the GSTR 2A file, choose the option called Download
- You can able download the file by either choosing the Generate JSON file to download OR Generating an excel file to download.
- Now just select the hyperlink that appears: Click here to download JSON-File 1
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