Key Differences Between GSTR-2A And GSTR-2B

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Published Date:  20-09-2023   Author:   yash-elwadhi
captainbiz key differences between gstr a and gstr b

You may have encountered the terms GSTR- 2A and GSTR 2B while filing the GST returns as a business owner. These are two different kinds of GST returns that you must file on a timely basis if you are a business owner. It helps you stay on top of your GST compliance requirements and enables you to avoid any penalties. In this blog, we will understand the concepts and the difference between the two.

GSTR- 2A

It is an important document in the world of GST. It includes the details of all the purchases made by you as a business owner from different suppliers in a financial year. The goods suppliers submit every mandatory information that auto-populates the document. This applies every time a supplier files their GSTR- 1 return; the recipient’s GSTR- 2A reflects the information of the invoices provided by the supplier.

It is important to note that the recipient of goods and services cannot edit GSTR-2A because it is only a read-only document. GSTR-2A shows the purchases made by the taxpayers and allows them to claim the Input Tax Credit (ITC). As a taxpayer, you can trust GSTR-2A as it is a reliable source of information and is auto-generated. However, GSTR-2A is not conclusive proof of the taxpayer’s purchases, and it shows only the information provided by the suppliers; hence you must check all the details for accuracy before claiming ITC.

 

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GSTR- 2B

The GST portal generates GSTR- 2B regularly every month and is available for you to access on the 12th day of the following month. However, GSTR- 2B is not generated on real-time data; it is a consolidated report generated from GSTR- 1 and GSTR- 3B returns filed by the supplier.

GSTR- 2B shows a summary of the input tax credit available to the taxpayer, and once it is generated, GSTR- 2B becomes a static document. And you, as a taxpayer, can use the report to reconcile your books and the purchases made in the whole month. GSTR-2 B is an important document for taxpayers, and it shows a consolidated statement of the purchases made from different suppliers in a specific month.

Difference between GSTR- 2A and GSTR- 2B

GSTR- 2A and GSTR- 2B show similar details but differ in many ways. The difference between both is as follows:

Basis

GSTR-2A

GSTR- 2B

Type of Statement

It is a dynamic statement and the details of inward supplies input tax credit will be updated on a regular basis and is a read-only document.

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It is a form of static statement and the details are updated on a constant basis.

Reflection of Details

The details of the inward supplies are reflected in the statement on a real-time basis. When a supplier furnishes the details of outward supplies, it updates.

The details are reflected in a static manner. It reflects the details of outward supplies shared by the supplier between two due dates of either Form GSTR- 1 or invoice furnishing facility.

Eligible and ineligible Input Tax Credit

GSTR-2A does not include bifurcation of eligible input tax credit and ineligible input tax credit.

GSTR- 2B bifurcates in detail about the eligible and ineligible input tax credit.

Data Source

GSTR- 2A collects data on the basis of returns filed by the supplier in Form GSTR- 1; Form GSTR- 5; Form GSTR- 6; Form GSTR- 7 and Form GSTR- 8.

GSTR- 2B collects data from Form GSTR- 1; Form GSTR- 5 and Form GSTR- 6 filed by the supplier.

 Read more: GSTR-2A and GSTR-2B: A Guide for Taxpayers

The Bottom Line

Understanding the differences between GSTR- 2A and GSTR- 2B ensures you are updated about the GST compliances. GSTR-2A is a document that requires businesses to undertake thorough verifications. On the other hand, GSTR- 2B gives a more consolidated view of the tax credits. Hence you should take the benefits of both GSTR- 2A and GSTR- 2B to manage your tax obligations effectively.

Frequently Asked Questions (FAQs)

1.     Can I edit the information in GSTR-2A?

No, GSTR- 2A is a read-only document, and you cannot edit it.

2. Is it mandatory to file GSTR- 2B?

No, it is not mandatory to file GSTR- 2B, but using GSTR- 2B to reconcile the purchases and claim the input tax credit is recommended.

3. How often is GSTR- 2A generated?

GSTR-2A generates automatically in real-time based on the information submitted by the taxpayer’s suppliers.

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Yash Elwadhi

Yash Elwadhi is a highly skilled and experienced finance content writer with a proven track record of providing insightful and engaging content to a wide range of clients in the financial industry. He has collaborated with prominent financial institutions, fintech companies, and wealth management firms, and is known for his ability to convey complex financial concepts in a clear and engaging manner. Yash is committed to delivering high-quality content that adds value to his clients' target audience and helps them achieve their financial goals.

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