What is GSTR-2B? Know the Difference between GSTR-2A and GSTR-2B
GSTR-2B is a month-by-month auto-drafted statement introduced on the GST (Goods and Service Tax) portal for regular taxpayers. This statement will be available from August 2020 tax period. GSTR-2B is a timesaver for taxpayers as it makes tax filing easier, eases reconciliation, and enforces compliance.
GSTR-2B is an auto-drafted statement available for taxpayers on the Goods & Services Tax (GST) portal. What’s new about GSTR-2B is that it reflects the Input Tax Credit (ITC) for each month but remains constant even as the suppliers and vendors update their details in the next month(s).
Read on to know the benefits, how to claim Input Tax Credit and the steps to download GSTR-2B.
What is GSTR-2B?
An auto-drafted statement, GSTR-2B, was launched on the GST portal beginning August 2020 onwards. The statement reflects both the eligible and ineligible ITC for the said period, remaining unchanged even as suppliers keep updating their details in the upcoming months. It means that whenever you access a GSTR-2B for a month, the details in it remain the same even as your suppliers keep updating the details for that period in later months.
You need to download it on the 14th of each month before filing the ITC claim. In other words, GSTR-2B for July 2022 will be generated on 14th August 2022 and will mention details from 14th July- 13th August 2022.
You can generate GSTR-2B using the input submitted by your suppliers in GSTR-1, GSTR-5, and GSTR-6 forms. The portal allows you to download GSTR-2B in both excel and PDF forms.
Features of GSTR-2B
- The GSTR-2B statement mentions both the eligible and ineligible ITC claims under each section.
- You can view document-wise details like invoices, and credit and debit notes.
- You can view both the import from overseas and inward supplies.
- It also provides advisory for each section, mentioning the mandated action for the taxpayer to take.
- The portal’s summary can be viewed customised; you can sort/filter details, text-search et al.
- Complete and section-wise, you can download the ITC statement in both Excel and PDF forms.
What are the Benefits of GSTR-2B?
- Since the details in GSTR-2B remain unchanged, ITC cannot be claimed twice against a particular document.
- The GST is duly paid on a reverse charge basis against applicable documents, including the import of services.
- GSTR-2B specifies the columns/tables in GSTR-3B under which a particular invoice’s ITC has to be claimed.
- Thanks to GSTR-2B, taxpayers can easily reconcile the ITC details with their books. They can ensure that credit is reversed and isn’t charged twice.
Also Read: How To File GSTR-9 And What Is The Penalty For Late Filing?
What are the Differences Between GSTR-2A and GSTR-2B?
GSTR-2A and GSTR-2B both show Input Tax Credit for each month on a monthly basis. However, there are certain key distinctions between the two:
- GSTR-2A is dynamic; that is, its details get updated as suppliers update new documents for a month in later months. On the other hand, GSTR-2B is static; that is, its details remain unchanged even as suppliers update new documents for a month in later months.
- It is difficult to ascertain in GSTR-2A whether all the credits for the month have been included as many times, suppliers file their details much later. GSTR-2B helps identify the non-compliant suppliers as it doesn’t change due to later updates by the suppliers.
- GSTR-2B has an advisory against each section on what action a taxpayer needs to take in the GSTR-3B. GSTR-2A doesn’t provide this convenience.
- GSTR-2A sources its details from GSTR-1, GSTR-6, GSTR-7, and GSTR-8. GSTR-2B sources its details from GSTR-1, GSTR-5, and GSTR-6.
What are the Steps to Download GSTR-2B?
Here is a detailed guide on downloading GSTR-2B:
Step 1: Visit the GST portal (https://www.gst.gov.in/) and login using your credentials.
Step 2: Click on the ‘Services > Returns > Returns Dashboard’ tab.
Step 3: Once the Returns Dashboard appears, choose the Financial Year, the Return Filing Period and then click on the Search button.
Step 4: As different boxes appear, you can find the Auto-drafted ITC Statement (GSTR-2B) button amongst them. You can view or download the details as per your wish.
Step 5: Once you click the View button, you can view the Summary or All Tables.
Step 6: The Summary tab has two components: ITC available and ITC not available.
Step 7: The ITC ‘available’ part lists the inward supplies along with the applicable ITC.
Step 8: The ITC ‘not available’ part lists the inward supplies for which it has to be reversed or for which it cannot be claimed.
Step 9: Once you click the Download button, you get the option to download the statement in JSON (single sheet) or Excel (multiple sheets) format.
Step 10: If you want to know the cut-off dates, click on the View Advisory button. It lists all the necessary details and you can also download it.
Step 11: You can sort the ITC information on the All Tables tab as per the GSTR-2B tables, such as B2BA, B2B CDNR, B2B, ISD, IMPGSEZ ISDA, B2B CDNRA, and IMPG. One can also filter the details supplier-wise.
How to Claim Input Tax Credit in GSTR-2B?
Follow these steps to claim for Input Tax Credit for a month in GSTR-2B:
- For each month, a supplier updates the sales data with the supporting invoices by the 13th of the next month.
- You can access these invoices submitted by your suppliers in the GSTR-1 section in your GSTR-2B form.
- Based on these invoices, you can claim an Input Tax Credit (ITC) in your GSTR-3B form.
Also Read: What Is RCM Under GST? How To Show RCM Sales While GSTR Filing?
How does GSTR-2B Help in Input Tax Credit Filing?
The auto-drafted statement in GSTR-2B in GST helps in calculating the ITC claims, thereby simplifying the ITC filing process.
It specifies whether an ITC is available for the claim or not. (ITC is unavailable in cases when the time to avail it on an invoice expires either before 30th September of the following financial year or before the filing date for the annual return. It is also unavailable when the supplier’s GSTIN and the place of supply are in the same state and the recipient is in another state.)
GSTR-2B in GST lists only those invoices against which returns have been filed. Its static nature ensures that you can check if you have claimed ITC for the given invoices so that you can avoid claiming it again.
Final Word
GSTR-2B is the most necessary document for a seller to claim ITC for a month. It helps the seller in identifying the defaulting suppliers and keeping a consistent track of the given invoices.
FAQs on GSTR-2B
Ans: The GSTR-2B form helps you identify which ITC is available for the claim and which ITC isn’t available for the claim.
Ans: The difference between GSTR-2A and GSTR-2B is that, GSTR-2B is static and GSTR-2A is dynamic. The details in GSTR-2B remain unchanged even as suppliers update new documents for a period in later months. The details in GSTR-2A keep getting updated as suppliers update new documents for a period in later months.
Ans: From August 2020 onwards, you should refer to GSTR-2A for GSTR-3B preparation as it is static and unchanged.
Ans: No one can make adjustments to GSTR-2B as it is a static form. The details in it remain unchanged even as the suppliers may be uploading invoices for the said period in consequent months.
Ans: As the Government of India has ended the Provisional ITC program, no company can claim more ITC than stated in the GSTR-2B form. The Provisional ITC program allowed taxpayers to claim 5% provisional ITC on qualified ITC.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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