Implications of GSTR- 2B on Compliance and Audit

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The world of taxation is very dynamic, and the introduction of Goods and Services Tax (GST) has brought many changes in compliance, where GSTR- 2B stands out as a game changer. This blog will explore how this form changes how people meet their tax obligations. Let’s dive in and understand more about it.

GSTR-2 B assists taxpayers in return under the following circumstances:

  1. It includes information on the importance of goods from the ICEGATE system and inward supplies of goods inwards from the Special Economic Zones Units/ Developers.
  2. A statement summary shows all the ITCs available and non-available under every section. The advisory present against every section states the action that needs to be taken by the taxpayers in their respective section of GSTR- 3B.
  3. The document also contains details of all the invoices, credit notes, debit notes, etc., and is also provided for viewing and downloading. (FREE DEMO) CLICK HERE!

Main Features of GSTR- 2B for Compliance and Audit:

  1. GSTR- 2B is an auto-populated ITC statement generated for every registered person (except individuals registered for composition dealers under Section- 10) based on the data provided by the suppliers in their respective GSTR- 1, GSTR- 5 and GSTR- 6. The form states the availability of ITC to the registered person against all the documents filed by the suppliers.
  2. A static statement: GSTR- 2B is generated every month on the 12th day of the coming month. For your ease, a PDF file and email showing whether ITC is available to the assessee is sent to you. The form aims to summarise all the ITC details and credits attached to the GSTR-3B.
  3. GSTR- 2B for a month (M): This document includes all the details of the document filed by the supplier in their respective GSTR- 1, GSTR- 5 and GSTR- 6 between the due date of furnishing of GSTR- 1 for the previous month to the due date of furnishing of GSTR- 1for the current month.
  4. The documents provided by the supplier in any GSTR- 1, GSTR-5 and GSTR- 6 will be shown in the next open GSTR- 2B of the recipient, irrespective of the date of issuance of the concerned document.
  5. The tax paid on the reverse charge basis, for example, on the import of services, is not included in the statement, and the ITC on RCM continues to be entered by the taxpayers in Table 4 (A) (2) of GSTR- 3B form.
  6. Table 3: ITC available summary captures the summary of ITC available as of the date of generation of GSTR- 2B form.
  7. Table 4: ITC not available summary captures the summary of ITC not available as of the date of generation of GSTR- 2B form, and the credit reflected on the table is not entered in Table 4(A) of GSTR- 3B form.
  8. Credit mentioned as ‘ITC not available’ in Table 4, invoice or debit note for the supply of goods and services or both where the recipient is not entitled to ITC as per the rules of sub-section (4) of Section 16 of CGST Act, 2017 and the invoice or debit note where the supplier (GSTIN) and the place of supply are in the common state, and the recipient is in another state.
  9. You can access the GSTR- 2B by opening the GST Portal, clicking on ‘Returns Dashboard’ and then selecting ‘Select Return’ period, and then GSTR- 2B after logging in to the GST portal.
  10. The details of all the documents in the GSTR- 2B form are available online and in the download facility. Hence this form can be saved in PDF, Jason file and Excel sheet.

Also Read: Unlocking the Potential of GSTR-2B Reconciliation

The Bottom Line

GSTR- 2B has been a valuable form of taxes and GST. The automated features it provides and real-time data integration allow business owners to stay ahead in their tax obligations and do their daily operations seamlessly.

Having advanced and easy-to-use GST billing software allows you to stay ahead in your tax obligation.

Frequently Asked Questions (FAQs)

1.    What is the use of the GSTR- 2B form?

The taxpayers use the GSTR- 2B form to take the right Input Tax Credit (ITC) in the respective sections of the GSTR- 3B form.

2. Which taxpayers can view GSTR- 2B form?

Normal tapers, SEZ and casual taxpayers can view GSTR- 2B form.

3. Can I, as a taxpayer, download and keep a copy of the GSTR- 2B form for my records?

Yes, GSTR- 2B form can be viewed or downloaded in JSON format, PDF or Excel.

author avatar
Moulik Jain
I am a seasoned marketer specializing in Tax, Finance, and MSMEs. I bring a wealth of hands-on experience to demystify complex subjects, providing insightful guidance for entrepreneurs and finance enthusiasts alike.

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