GSTR-2B- What Taxpayers Must Know
GSTR -2B refers to the new static monthly auto-drafted statement introduced on the GST portal for regular taxpayers, SEZ, and casual taxpayers. Like GSTR-2A, it provides monthly eligible and ineligible Input Tax Credit (ITC). However, it remains constant for a period. It means that the data in GSTR -2B for a month remains unchanged for subsequent changes by their suppliers once it is accessed on the GST portal.
Recipients can generate it based on the GSTR-1, GSTR-5, and GSTR-6 provided by their suppliers. GSTR-2B shows document-wise details of ITC eligibility, with information from the filing date of GSTR-1 for the preceding month to the filing date for the current month. In this article, we will explain all key facts regarding GSTR -2B a taxpayer needs to know to file and pay their taxes on time and avoid hassles in the long run.
GST-2B Format
GSTR-2B includes the input tax credit on purchases from regular taxpayers and non-resident taxable persons. Additionally, it also shows that input tax credit is distributed by the input service distributor. Here are the contents of GSTR-2B:
-
Summary statement with ‘ITC available’ and ‘ITC not available’ for each section
-
Document-wise details such as invoices, debit notes, and credit notes along with amendments
-
Import of goods and import from SEZ units (available from GSTR 2B of August 2020 onwards)
-
Advisory for every section showing the kind of action taxpayers must take
-
Advisory and cut-off dates for generating and using GSTR-2B
Notably, PART-A of ITC Available includes details of inward supplies, credit-debit notes, and import of goods divided into four parts (supplies from registered persons, ISD, import of goods, and inward supplies on reverse charge). PART-B is ITC Reversal with a part called ‘Others’ containing details of credit notes and amendments. PART-A of ITC Not Available includes purchase invoice or CDN details divided into three parts (supplies from registered persons, ISD, and inward supplies on reverse). PART-B comprises CDN details and amendments under the ‘Others’ head.
The input tax credit is marked as ‘not available’ when:
-
The time limit to avail of input tax credit on a debit note or invoice has expired under section 16(4) of the CGST Act
-
The state of the supplier and location of the supply is the same, but the recipient is in another state
-
The purchaser is not eligible for an Input Tax Credit towards a debit note or invoice issued for the supply of goods or services
Features of GSTR-2B
-
Available as a PDF file to view and download the summary statement
-
Users can get complete download or section-wise details of ITC instantly
-
Allows text search for the generated records
-
Enables users to view, filter, and sort data
-
Option to hide/view the columns
-
Availability of section-wise advisory
-
Options for a full download of GSTR-2B and an advanced search for files with more than 1,000 records
-
Reflects only documents filed by suppliers/ISD in their GSTR-1/5/6
-
An SMS or email is sent to the taxpayer to inform them about the generation of GSTR-2B
Benefits of GSTR-2B
Taxpayers can use the data in GSTR-2B to reconcile ITC with their own records and books of accounts. It enables them to ensure the following with easy identification of documents:
-
The tax credit is reversed in their GSTR-3B as per the GST law
-
The input tax credit is not availed twice against a document
-
GST is correctly paid on a reverse charge basis for relevant documents
-
The statement shows the columns or tables of GSTR-3B under which the input tax credit must be taken
When was GSTR-2B Introduced?
-
GSTR-2B was introduced in August 2020. Recipient taxpayers could generate it once a month until January 2021, on the 12th of the month next to the specific tax period. However, the date changed to on or after the 14th of every month from January 2021 onwards. You can check the timelines for the generation of GSTR-2B under the ‘View Advisory’ tab on the government portal.
How to Download GSTR-2B from the GST portal?
Step 1: Log in to the GST portal using your credentials.
Step 2: Navigate to the ‘Returns Dashboard’.
Step 3: Choose the relevant tax period by selecting the month and financial year.
Step 4: Click on ‘View’ or ‘Download’, as per the need on the ‘GSTR-2B’ tile.
Step 5: Take appropriate action 2B based on the option chosen in Step 4.
-
Click on ‘Generate JSON File To Download’ if you plan to download. You may click on the ‘Generate Excel file to download’ button to get the data in the Excel file.
-
If you intend to view it, check the tabs called Summary And All Tables. The Summary tab has two parts. Part A (ITC Available) shows the ITC summary value of credits on its generation date. It is divided into credit you can avail of and credit to be reversed. Part B (ITC not Available) shows the ITC summary value of credits not available. The All Tables tab has the ITC information you can sort according to the tables of the GSTR-2B form (B2B, B2BA, B2B CDNR, B2B CDNRA, ISD, ISDA, IMPG, and IMPGSEZ).
What is the Difference between GSTR-2A and GSTR-2B?
-
Here are the differences between GSTR-2A and GSTR-2B:
-
GSTR-2A is a progressive auto-drafted statement showing input tax credit (ITC) details to a recipient of supplies, based on the suppliers’ data. Conversely, GSTR-2B is a constant auto-drafted statement providing the same details.
-
While GSTR-2A is dynamic and changes day to day when a supplier uploads the documents, GSTR-2B is static as it cannot change based on future actions of the supplier once it is loaded for a month.
-
GSTR-2A does not include information or advisory on the action a taxpayer is supposed to take. Conversely, GSTR-2B offers an advisory against each section for the taxpayer to take action accordingly in his GSTR-3B.
-
Since GSTR-2A is a dynamic statement, the cut-off date for entries and viewing the statement for a tax period is not applicable. In the case of GSTR-2B, the cut-off date is the 11th/13th of the succeeding month depending on the type of return. The statement is generated on the 14th of the succeeding month.
-
The maximum number of ITC entries viewable on the GST portal without Excel download is 500 rows for GSTR-2A and 1000 rows for GSTR-2B.
Matching Purchase Register with GSTR-2B
Taxpayers should reconcile the data provided in GSTR-2B with their records and books of accounts. Here are the things they should ensure:
-
Input tax credit is not taken twice for the same supply
-
Tax should be charged on a reverse charge basis and paid to the government
-
Credit is reversed in GSTR-3B according to the GST Act and Rules
-
The tax credit is available only for the tax which has been actually paid to suppliers
-
The purchase invoices against which tax credit will be claimed should be in the GSTR-2B as per Section 16 of the CGST Act
-
No excess tax credit is claimed; otherwise, you will have to pay it back with an interest of 24% per annum
-
ITC belonging to a specific financial year should be availed before a deadline under the GST law
-
There are no critical mismatches between GSTR-2B and GSTR-3B
Matching GSTR-2B with purchase books is critical because GSTR-3B is auto-populated with the values from GSTR-1 and GSTR-2B forms from late 2020 onwards. A mismatch in GSTR-2B can affect GSTR-3B as well. Moreover, the values from GSTR-2A need not be taken once the values are taken from GSTR-2B. The GST portal offers the Offline Matching Tool to help taxpayers match the GSTR-2B form with their purchase register. However, you must add data and import it into this tool in the same format as provided on the GST portal. Here are the parameters used for matching the entries between the two data:
-
GSTIN
-
Document type
-
Document date
-
Document number
-
Total taxable value
-
Total tax amount (including IGST, CGST, SGST, and CESS)
-
Tax amount head-wise
Frequently asked questions
Q
Do I have to file Form GSTR-2B?
A
You need not file Form GSTR-2B as it is a read-only static auto-drafted ITC statement. It shows the available Input Tax Credit to you against each document your suppliers file and ITC received through ISD.
Q
When is Form GSTR-2B generated?
A
Form GSTR-2B is generated monthly on the 14th day of the succeeding month. For example, the statement for July 2020 will be generated and made available on 14th August 2020. Form GSTR-2B will include documents filed by suppliers in their Form GSTR-1, 5 & 6 between the cut-off dates. Additionally, it will have import data for the period within the 13th of the succeeding month.
Q
Can a taxpayer make any changes to or add a document in Form GSTR-2B?
A
Since GSTR-2B is a read-only static ITC statement, taxpayers cannot make any changes or add documents to it. However, they can view or download it.
Q
Which taxpayers can view Form GSTR-2B?
A
Form GSTR-2B is available only to normal taxpayers, SEZ taxpayers, and casual taxpayers. They can also download a copy and retain it for future reference.
Q
Should taxpayers refer TO the GSTR-2A or GSTR-2B for input tax credit claims?
A
Taxpayers must refer to the GSTR-2B for GSTR-3B preparation from August 2020 onwards.
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
RECENT POST