GSTR-2B – Importance, difference, and procedure
A small guide to GSTR-2B
In this post, we will discuss GSTR 2B, its importance, new updates, differences from GSTR 2A, and the procedures to download it
Here we will take a look at each section in detail:
What is GSTR 2B?
It is an input Tax Credit Statement (ITC) that has recently been added to the GST portal. In order to simplify ITC claims for registered taxpayers, it is generated on a monthly basis. In contrast to GSTR 2A, it remains unchanged for a given period.
Statements are provided to all taxpayers and are populated automatically based on documents (GSTR 1, GSTR 5, and GSTR 6) submitted by their suppliers. The ITC is displayed illustratively and detailed for each document, such as an invoice supplied by a supplier. According to ITC, taxpayers do not need to file GSTR 2B legally.
Therefore, GSTR 2 B’s last date does not exist.
Latest Updates
From 1st February 2022
1. ITC cannot be claimed if it is restricted in GSTR-2B available under Section 38.
2. Invoices and debit notes for a financial year can claim within the earlier two dates. First, the 30th November of the following year or the date on which annual returns are filed.
3. As part of Form GSTR-2B, Section 38 is transformed into ‘Communication of details of inward supplies and input tax credit. In Form GSTR-2, the GST return for a suspended return, it lays down the manner, time, conditions, and restrictions for filing ITC claims. In addition, information regarding eligible and ineligible ITCs will be provided to taxpayers.
4. Section 41 of the Act removes the provisional ITC claims and prescribes self-assessed ITC claims with conditions.
5. Sections 42, 43, and 43A remove provisions regarding provisional ITCs, matching, and reversal.
6. Among the changes to Section 50 is the imposition of interest on excess ITC claims and utilisation.
Importance of GSTR 2B?
GSTR-2B reports data in a way that allows taxpayers to easily reconcile ITC with their own books of accounts and records. It will allow them to identify documents easily in order to ensure the following:
- It is not possible to claim input tax credits twice against the same document.
- In their GSTR-3B, where necessary, tax credits are reversible according to GST law.
- The GST needs to pay on a reverse charge basis for all relevant documents, including services imported.
- An input tax credit for an invoice or debit note must calculate according to the relevant tables and columns in GSTR-3B.
When was GSTR-2B made available for the taxpayer?
GSTR-2B has been available since August 2020. Before January 2021, On the 12th of the month following the tax period, recipients could generate it.
As an example, GSTR 2B for August 2020 is available on 12th September 2020.
The GSTR-2B can be generated as of January 2021 on or after the 14th of every month for the tax period.
As an example, GSTR 2B for October 2021 is available on 14th November 2021.
On the government portal, you can view the timelines for the generation of GSTR-2B under the ‘View Advisory’ tab.
Difference between GSTR 2A and GSTR 2B
|
Points of difference |
GSTR 2A |
GSTR 2B |
|
Availability of data |
Data is available as soon as the supplier provides the details. |
Every information is available after the 12th of every month |
|
Properties of the document |
It is dynamic in nature as it keeps changing day by day as in when the supplier furnishes the documents. |
Stays constant as the GSTR-2B for one month cannot change based on future actions of the supplier. |
|
Source of information |
GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8 |
GSTR-1, GSTR-5, GSTR-6, ICEGATE |
|
ITC claim |
ITC is updated based on the month during which the transaction occurs and the supplier files GSTR 1. As a result, taxpayers can claim ITC during the month in which the transaction took place. |
This return appears in the month of GSTR 1 by the supplier. As a result, the recipient will claim ITC in the following month |
|
ITC from the units of SEZ |
In this return, no details are provided on the ITC available from SEZ units. |
Detailed information regarding this can be found in this return. |
|
The maximum ITC entries can be viewed on the GST portal without downloading an Excel file |
500 rows |
1000 rows |
GSTR 2B format
The downloaded format of GSTR 2B contains the following information:
1, GSTIN
2,(a) Legal name of the registered person
3,(b) Trade name if any
2,(c) Date of generation
a. ITC available summery
Part A contains
All other ITC- Supplies from registered persons other than reverse charge, Inward supplies from ISD, Inward supplies liable for reverse charge, Import of goods
Part B contains ITC reversals
B2B-credit notes, B2B-credit notes(amendments), B2B-credit notes(reverse charge), B2B-credit notes(reverse charge)(amendments), ISD credit notes, ISD credit notes(amendments)
b. ITC not available summery
Part A contains
All other ITC- Supplies from registered persons other than reverse charge, Inward supplies from ISD, Inward supplies liable for reverse charge
Part B contains
B2B-credit notes, B2B-credit notes(amendments), B2B-credit notes(reverse charge), B2B-credit notes(reverse charge)(amendments), ISD credit notes, ISD credit notes(amendments)
Benefits and Features
Benefits of GSTR 2B:
Easy GSTR 3B filing: It simplifies the GSTR 3B filing by taking less amount of time for the whole process.
Reconciliation of GST: it refers to the maintenance of records for all transactions carried out during a particular time. By the details of GSTR 2B, taxpayers are able to process reconciliation between the details provided in the auto-populated statement and the taxpayer’s book of accounts. By doing the reconciliation, taxpayers can ensure credit is reversed,
Increased accuracy: the chances of making errors are too slim in this statement, therefore more accurate details.
The features of GSTR-2B:
- Complete ITC details
- Section-wise summary
- Supplier wise summary
- The summary statement can download into a PDF file.
- Every generated record is able to “Text Search”
- A taxpayer can view, sort, and filter the data at their convenience.
- If the file contains more than 1,000 records, there is an option to download the full GSTR-2B along with an advanced search option.
- In GSTR-2B the taxpayers can hide and view columns as per their wish.
- After the generation of GSTR 2B, the taxpayer will be notified with an email or an SMS.
- Import information provided by the units of Special Economic Zones and Customs is available in GSTR 2B.
Procedure to view and download GSTR 2B
Taxpayers can view and save the statement on their device through the GST portal by the following steps below:
Step 1: Open the official website of the GST council
Step 2: Log in to the GST portal using his/her login credentials
- username
- password
- captcha code
Step 3: Navigate to ‘services’ and then click the “returns Dashboard” option under the “returns” tab.
Step 4: Choose the right tax period
Step 5: Select the month and financial year accordingly
Step 6: Click “GSTR 2B”
Step 7: Click on “Download” download the statement and save it in your system so it can access offline.
This post on GSTR 2B has come to an end. Share your views and opinion with us in the comment section below.
