Business owners face daily challenges regarding their day-to-day operations or tax obligations. After the introduction of GST, things are simplified. However, there could be errors and discrepancies in the GSTR-2B returns, an important tool for the business to summarise inward supplies in a single place. This blog will discuss errors and discrepancies business owners face in their GSTR- 2B form and how to rectify them. Let’s understand more about it.
GSTR-2B is a monthly return form that helps businesses reconcile purchase data with vendors. The state is auto-populated based on the information provided by their vendors in their GSTR- 1, GSTR- 5 and GSTR- 6 returns. GSTR- 2B summarises the inward supplies and Input Tax Credit (ITC).
Errors or Discrepancies in GSTR- 2B Form
GSTR-2 B aims to provide real-time data and accurate information, but discrepancies may still occur in some cases. The following are the common errors:
1. Incorrect Invoices
Vendors may key in wrong information while updating details, such as wrong GSTIN, incorrect invoice numbers or invoice amount.
2. Non-Matching Data
Discrepancies may happen when the recipient’s GSTR- 2A does not match the supplier’s GSTR- 2B because of delays and mismatches in data filing.
3. Missed Invoices
The suppliers may fail to report some invoices, resulting in missed input tax credits for the recipients and discrepancies in GSTR- 2B.
4. Duplication of Invoices
Duplicate Invoices can occur if the vendor intentionally or intentionally submits the same invoices multiple times, which causes inconsistency in GSTR- 2B.
Read more: GSTR- 2B: Everything You Need to Know
Correcting Errors or Discrepancies
You should follow these steps to avoid and rectify discrepancies in GSTR- 2B form:
1. Clear communication with the Vendors
You should communicate clearly with the vendors about the supplies to find out the reason for discrepancies, and you must share the required details and request them to rectify any errors in their upcoming returns.
To ensure accuracy, you need to reconcile your purchase data with GSTR- 2B to find any discrepancies and compare the data from GSTR- 2A with GSTR- 2B.
3. Changes in the Subsequent Returns
If any errors or discrepancies occur, it is important to make the required changes in the upcoming GSTR- 3B returns, and you should adjust the ITC based on the corrected values that align with the GST regulations.
4. Regular Review and Corrections
Reviewing your GSTR-2 B regularly and comparing it with your purchase data allows you to find any new discrepancies and take corrective actions on time to avoid further issues.
5. Consultation with Experts
If you are facing consistent issues, you must seek guidance from a tax professional or GST expert who can provide insights and assist you in resolving the discrepancies efficiently.
Maintaining accurate GSTR- 2B returns is important for staying updated on your tax obligations. Understanding the importance of GSTR- 2B, identifying common errors and discrepancies and following the required steps help in achieving accurate GST reconciliation.
An accurate GST reconciliation is important; doing so requires organised billing software that controls your inventory and helps in daily operations.
Frequently Asked Questions (FAQs)
1. Should taxpayers refer the GSTR- 2A or GSTR2B for their ITC claims?
For GSTR- 3B preparation from August 2020 onwards, taxpayers must refer to GSTR- 2B, a static version of GSTR- 2A.
2. Is there a difference between GSTR- 2A and 2B?
Yes, the GSTR-2A is a dynamic statement that updates when a taxpayer’s vendor files their GST return of outward supplies.
While GSTR- 2B is a static statement that includes all the details of ITC for a particular return period, taxpayers can identify the accurate ITC for the return period.