Tax compliance can be challenging for business owners as there are many documentation and processes to be done. However, everything can be done today with technology, and GSTR-2 B is one such auto-generated form that makes the process easy for you. This blog will explain how GSTR- 2B is generated and its importance in GST filing. Let’s dive in and understand more about it.
What is GSTR- 2B?
It is a statement showing you a comprehensive summary of all the inward supplies from the vendors, such as purchases and expenses for a specific period. The key feature of the GSTR- 2B form is that it is auto-populated and can be viewed on the portal or can be downloaded in xls and is generated based on information provided by the vendors in the GSTR- 1 and GSTR- 5 returns. Using GSTR-2 B, you can verify and tally your purchases with the vendors.
Generation of GSTR- 2B
The generation of GSTR-2 B occurs automatically on the GST portal, done by the GST Network (GSTN). As soon as the vendor fills their GSTR- 1 or GSTR- 5 returns, the information is saved in the system, and the system is designed to process the data to generate the GSTR- 2B for you for the specified period.
Availability and Features of GSTR- 2B
You can access GSTR- 2B on the GST portal. You can log in to the GST Portal using your id and password, and the form GSTR- 2B is updated monthly and allows you to stay updated with the GST obligations.
Here are some key features of GSTR-2 B:
GSTR-2 B allows you to reconcile purchase data with the vendor’s data with the help of data like invoices, debit and credit notes etc.
Better Data Accuracy
The main feature of GSTR-2 B is that it is auto-populated as soon as the vendor updates the details, leading to better data accuracy and minimising discrepancies while filing taxes.
GSTR-2 B also provides insights into the supplier’s compliance track record, including filing frequency and delay in filing returns which helps you make better business decisions about the suppliers.
Simple Filing Process
With the use of GSTR- 2B, your tax burden could be eased as it allows you to reconcile your purchases with the suppliers’ data efficiency, providing an accurate result without any error.
Availability of Worksheets
The availability of various worksheets allows the taxpayer to have an insight into their input tax credit (ITC) eligibility which can categorise the database into different parameters such as type of document, tax rate and the timing of invoices and the colours, provide crucial information about the suppliers, invoices and input tax credit amounts.
The Bottom Line
The introduction of GSTR- 2B has become a game changer for the business. Automating the reconciliation process simplifies the tax filing process and reduces errors.
Also Read: GSTR- 2B: Everything You Need to Know
Frequently Asked Questions (FAQs)
1. Can a taxpayer download and save a copy of the GSTR- 2B form for future use?
Yes, in post-login mode on the GST Portal, Form GSTR- 2B for a specific tax period will be available for viewing and downloading in Excel or JSON format.
2. What should be done if import IGST is not included in GSTR- 2B?
GSTR- 2B also includes data on goods imported through the ICEGATE system and the inward supply of goods received by SEZ Units/ Developers, and if any bill or entry is not shown in the GSTR- 2B, you can use GSTN’s self-service functionality to retrieve the missing records from ICEGATE.