8 Common Mistakes to Avoid while Filing GSTR-2A

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Published Date:  21-01-2024   Author:   pratis-amin
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Introduction:

In the world of GST (Goods and Services Tax) avoiding mistakes is at the topmost list. GSTR 2A filing mistakes may lead you to face many problems. The following tips will help you avoid these common GSTR-2A filing errors, through which you will witness a smooth GST filing procedure. These keys will help you in succeeding in this taxation world. To avoid GSTR 2A common pitfalls carefully read the information given below:

What is GSTR 2A?

GSTR 2A can be defined as a taxpayer’s ‘purchase register’. It reflects the Inward Supplies details by the suppliers made to taxpayers. GSTR (Goods and Service Tax Return) is automatically generated from GSTR 1 (the report of outward supplies) and GSTR 3B (the report of monthly returns) of the particular suppliers. It helps the taxpayers to know about their liability easily towards the government dues. It helps them reconcile by the last stretch of every financial year.

This form is a vital part of the taxpayer’s life as it helps in understanding their liabilities toward GST (Goods and Service Tax), availing ITC (Input Tax Credit), and settling GST returns. Through the reconciliation of GSTR 2A, it becomes easy for the taxpayers to enter and track their list of expenses. It also helps them to ensure whether they are attesting the proper and exact ITC or not, along with paying the factual tax liability. So, it is preferable to avoid GSTR 2A filling errors.

Also Read: Understanding GSTR-2A And Its Significance

How GSTR 2A Generated?

Through the GST portal, a business can get access to GSTR 2A data from trading partner’s or vendors’ returns as recorded in the forms, such as GSTR 1, GSTR 5, GSTR 6, GSTR 7, and GSTR 8.

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GSTR-2A can be generated using following steps- 

  1. The outward supplies of the suppliers are recorded in GSTR 1, after which the pieces of information are filled in on the GST portal.
  2. These outward supplies details are auto-populated and just within a day of filling the form GSTR 2A gets reflected on the taxpayer recipient.
  3. Periodically, the taxpayers can track their expenses, ensure ITC claims accuracy, and settle GST returns through their GSTR 2A each financial year’s end.
  4. As a result, the reconciliation of GSTR 2A can be done with GST modules/software.

Hence, it is possible to avoid pitfalls in GSTR 2A submission in  future.

How to File GSTR 2A?

As mentioned above, GSTR 2A is auto-populated only to read documents, so one doesn’t have to file it. Therefore, you can either accept it, modify it, defer it, or reject it if you find any kind of discrepancy in the details given in the data that the seller submitted to GSTR 1.

On the other hand, there’s nothing like the GSTR 2A drop-dead date. So, if you want any type of modification then apply it to GSTR 2. The drop-dead date starts on the 11th of the month and ends on the 15th of the month. Following the given month in which the GST return was filed.

Also Read: How to File GSTR-2A? A Complete Overview of the Process

What ate the Common Mistakes While Filing GST?

Below is the list of GSTR-2A filing errors you must avoid-

  1. Insufficiency of Documents: The biggest mistake of almost every person is not maintaining proper documents. Whether it is supplying bills, invoices, or records of any purchased item, keep all of the organized records for getting accurate filing of GST.
  2. Errors in Invoice Details: Invoice errors such as improper GSTIN (Goods and Services Tax Identification Number), false tax calculation, or incorrect invoice number, can give you penalties and compliance issues.
  3. Avoidable Errors in GSTR 2A & GSTR 3B: If you fail to reconcile the purchased data (GSTR 2A) along with the filled data (GSTR 3B) will also result in compliance problems and discrepancies. Hence, mistakes to steer clear in GSTR 2A filing.
  4. 4. Avoiding Reconciliation: The most overlooked mistake is reconciliation. Comparing your records with the GST returns will help you identify the alterity and redress them accordingly.
  5. Missing Due Date of GST Return: Avoid the last filing date of GST returns, as it attracts penalties. Always try to be serious when it comes to filing returns and due dates at the given time.
  6. Not Confirming Supplier’s GSTIN: This is one of the avoidable errors in GSTR-2A. Through the medium of the GST portal always verify the supplier’s GSTIN. Unauthentic or wrong GSTINs can put you into problems related to ITC.
  7. Lack of grasp on GST Composition Scheme: Now, if you are following the GST Composition Scheme but have no idea about its intricacies then you may result to wrong filings.
  8. Avoiding GST Compliance and Notices: If you fail to answer the compliances or GST notices then you may have to face legal troubles along with the heavy penalties.

How To Avoid Mistakes During GSTR-2A Filing?

Since now you know what Avoidable errors in GSTR-2A you must check upon. Let us now check how you can avoid them-

  1. Using GST Software: Using GST software may help you automate calculations including fewer chances of making manual mistakes.
  2. Update Your GST Knowledge Regularly: Always get into the news related to GST notifications, law-changing news, & circulars to get rid of complications.
  3. Opt For Professional Guidance: Before filing anything, try to consult any of the tax consultants or GST experts to avoid complex situations.
  4. Manage Internal Audits: Routinely analyze your GST data & filings to avoid errors promptly.
  5. Seeking GSTR-2A Filing Service- You can connect with experts offering service of filing GSTR-2A. You can get complete assistance so you can relax and concentrate on other activities of your business.

Conclusion:

For the financial well-being of a business perfect data in GSTR 2A and GSTR 3B is vital. Pitfalls in GSTR 2A submissions and GSTR filing errors may lead to heavy penalties; indirectly or directly, it will hit the bottom line. Keep your records accurate and always go for avoidable errors in GSTR 2A. Because an unnecessary and single financial strain can your business so protect from it.

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Also Read: The Penalties For Late Filing Or Incorrect Filing Of GSTR-2A And GSTR-3B

FAQs

1) What are the late filing penalties of GSTR 2A?

All businesses avoid penalties when it comes to GST especially, during pitfalls in GSTR 2A submission. As the form has no requirement of filing the time-to-time GSTR  2A reconciliation with the invoice of purchased item is crucial. And if you fail in it, then you have to face effectively increased tax liability and input tax credit (ITC) denial. So, mistakes to steer clear in GSTR 2A filing should be noticed.

2) What are the charges for incorrect filing of GSTR 2A?

You will face no direct charges for filing incorrect GSTR 2A. GSTR 2A filing errors indirectly hits financial status. The mismatched invoice may show the loss of input tax credit in the result. Meanwhile, it says you are paying additional GST than you should.

3) What are the penalties for GSTR 2A errors?

GSTR 2A filing errors may affect the direct fine. Pitfalls in GSTR submission are overlooked transactions or mismatched transactions that affect the input tax credit claims. 

4) What happens if the GSTR 3B submission gets delayed?

It will be costly to you if you fail to submit GSTR 3B and get delayed. For normal returns, you will be charged Rs. 50/day as a late fee and for nil returns Rs. 20. On the other hand, you have to pay interest in the due taxes, and you may feel that this will add to your financial burden.

5) What are the late filing penalties of GSTR 3B?

Businesses which has less than Rs. 1.5 crores turnover, the highest delay penalty is Rs. 2000/return for SGST and also in CGST. And the businesses which have their turnover between Rs. 1.5 crore to Rs. 5 crore, Rs. 5000/return is the cap, and for the businesses which have more than Rs. 5 crore turnover, then the delay penalty is Rs. 10,000/return. 

6) Can a taxpayer add or make changes to an invoice in GSTR 2A if there are any omissions or errors in the given data by the suppliers’ taxpayers? 

No, you can’t because it is a read-only document.

7) What are the details given in the form GSTR 2A?

The below-given sections are available in the GSTR 2A form.

  • Part A: Form GSTR 1/5 (refer to 2.1) is auto-populated.
  • Part B: Form GSTR 6 (ISD credits received) is auto-populated.
  • Part C: Form GSTR 7 and GSTR 8 is auto-populated.
  • Part D: ICEGATE Portal of Indian Customs is auto-populated.

8) How GST late fees are calculated?

Each day counts after you failed to file on the due date of GST returns. By CGST Rs. 100 is imposed as a late fee and by SGST Rs. 100. Therefore, here Rs. 200 in total has been imposed by the taxpayer department. For example, let us imagine that you failed for 20 days then your delay penalty will be counted as:

20 days * 200 = RS. 4000 will be the late fees. 

9) What if I have a nil amount to pay on the GST return? Then also can I go for GSTR?

Yes, you can go and file for GSTR. 

10) Is it possible to claim ITC if not reflected in GSTR-2A?

Ans: The taxpayer’s ability to demonstrate that the seller received the tax amount and that the Input Tax Credit claim is legitimate precludes the Input Tax Credit from being refused on the basis of the transaction’s failure to reflect in GSTR-2A.

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Pratis Amin

Pratish is a seasoned financial writer with a profound understanding of the financial world. With years of experience in content development, especially in finance and IT, and being a commerce graduate, he offers valuable insights to help readers navigate the complex landscape of money management, GST and financial planning. With simple reading content, but with great information, Pratish keeps himself updated with the finance industry. In spare time, he loves binge watching series and socializing.

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