GSTR- 2B is a form circulated by the Goods and Services Tax Network, which includes every detail of inward supplies of goods and services received from the registered suppliers. GSTR- 2B refers to ‘Goods & Service Tax Return 2B’. This form is crucial for the business because it allows you to tally your purchase ledger with vendors. This way, you can track the GST liability, input tax credit (ITC) and compare the data with purchase details. While GSTR- 2B reconciliation is a process where you can compare mismatches between the inward supply details and vendor invoices.
Content of GSTR- 2B
GSTR- 2B includes the input tax credit (ITC) for purchase from any regular taxpayer and non-resident taxable person. Moreover, the input tax credit is distributed by input service distributors.
The following information is provided in the GSTR- 2B:
- Every section is explained with the ‘ITC is available’ and the ‘ITC not available’.
- Taxpayers should comply with each section’s advisory.
- It includes document-by-document details with invoices, credit notes, debit notes, etc., available for viewing, downloading, and amendments.
- Deadlines and advisory for the use and generation of GSTR- 2B.
- Goods are imported from SEZs and from developers from August 2020 onwards.
- GSTR-2 B can be divided into two categories:
1. ITC is Available:
Part A includes the information regarding inward supplies, credit-debit notes (CDNs), including updates and imports, which are categorized into the following points: ITC for supplies from registered persons, ITC from ISD, ITC towards inward supplies on reverse charge and import of goods. Part- B is ITC Reversal with a section called ‘Others’, which includes credit notes and amendments.
2. ITC is not available:
Part- A of ‘ITC not available’ contains details on purchase invoices, amendments if applicable. It has three parts: All other ITC for the supply from registered persons, ITC from ISD and ITC for inward supplies on reverse charge. Part- B includes information related to the CDN and amendments under the heading ‘Others’.
The amendment table of GSTR- 2B gives only the differential amount (Amended-Original), also known as the delta value. However, the details of the original document will be shown in the document details.
The input tax credit is shown as ‘not available’ in the following situation.
- If the deadline for claiming the input tax credit (ITC) on an invoice or debit note gets expires under Section 16(4) of the CGST Act.
- The provider’s state and place of supply remain the same, but the recipient’s state is different.
- An invoice or debit note issued for the supply of goods and services for which the purchaser is not obliged to an input tax credit.
Read More: GSTR- 2B: Everything You Need to Know
How is GSTR- 2B Generated?
The generation of GSTR- 2B is done in the following steps:
- The vendor files a copy of GSTR-1 that includes the information on outward supplies.
- The information available in GSTR- 1 is auto-populated in GSTR- 2B.
- Once the supplier fulfils their GSTR- 3B, information such as GST liability and ITCs are auto-generated in GSTR- 2B.
- GSTR- 2B is generated and is available to the recipient in the GST portal.
- If there are any discrepancies in the company’s returns and the supplier’s invoice, they must be reconciled in the GSTR- 2B before filing a return.
- Once the reconciliation process is complete, GSTR- 2B can be filed by clicking the ‘File’ option on the portal.
View and Download GSTR- 2B
You can view and download GSTR- 2B from the GST portal by following the mentioned process:
Step 1: Open the GST portal and log in using your credentials.
Step 2: Navigate to the ‘Downloads’ section and click ‘Returns Dashboard’> View/Download’ GSTR- 2B.
Step 3: Select a specific financial year and month you want to view or download GSTR- 2B.
Step 4: Lastly, click on the ‘Download’ button to get a copy of the document in PDF format.
Frequently Asked Questions (FAQs)
1. Should taxpayers refer to GSTR- 2A or GSTR- 2B for their input tax credit claims?
You should refer to GSTR- 2B for the input tax credit claims because it includes auto-populated data about outward supplies, GST liability and ITCs. Moreover, the discrepancies between the returns filed by the company and the supplier and their invoices can be reconciled in GSTR- 2B before filing a return.
2. Why is there a slight difference between GSTR-2A and GSTR-2 B?
GSTR- 2A and 2B are returns filed under the Goods and Services Tax (GST) regime. But they have different filing dates, objectives and data sources. A vendor files the GSTR-2A manually by inputting information on all the inward supplies from the registered GST vendors. At the same time, GSTR-2 B is auto-populated by the GST portal and includes all the information about outward supplies.
Related Read: Benefits and Limitations of using GSTR- 2B
The Bottom Line
Understanding the information in GSTR- 2B is essential for businesses to make accurate GST filings. This is a valuable tool in reconciling ITC and finding discrepancies.