GSTR-2B | Everything You need to Know

GSTR-2B: GSTN has implemented a new component to its platform by activating GSTR 2B commencing in August 2020. GSTR 2B identifies the issues taxpayers are expected to encounter while claiming Input Tax Credit and trying to reconcile it.

What is GSTR-2B in the Context of GST?

Form GSTR-2B is nothing more than a highly comprehensive declaration of every eligible and ineligible Input Tax Credit for a particular taxpayer.

GSTR-2B is an automatically populated ITC statement largely dependent on Forms GSTR-1, GSTR-5, and GSTR-6 of the supplier and Form GSTR-2A of the receiver created solely for the buyer focusing on information submitted by his different suppliers.

When will GSTR-2B be Uploaded on the GST Portal?

GSTR-2B is an utterly static declaration accessible to the public each month on the 12th of the subsequent month.

For illustration, the statement for July 2020 will be developed and made readily available to the legally registered client on August 12, 2020.

Even if an invoice is not made clear in GSRT 2B for any period because of whatever specific reason, such as the supplier missing to submit a return, the supplier is entitled to report a quarterly return, etc., the taxpayer could still receive an input tax credit limited to a threshold variation of 10%.

What are the Fundamental Components of GSTR-2B?

GSTR-2B for a certain tax period keeps static. Unlike GSTR-2A, any adjustments to GSTR-1, GSTR-5, or SGTR-6 have no impact on GSTR-2B. The beneficiary is also not permitted to make any edits to form GSTR-2B.

  • GSTR-2B will receive import credentials from the ICEGATE System and incorporate details on inbound supplies of commodities from Special Economic Zone units/developers. The equivalent is not yet readily accessible in GSTR-2B, although it will be followed shortly.
  • There are options available for viewing and downloading the document-level relevant data of bills, credit and debit notes, and the like.
  • A brief consolidated ITC Statement will illustrate whether or not the ITC is eligible for benefits under each provision.
  • Taxpayers can take appropriate actions in the specific parts of GSTR-3B based on the information currently furnished inside each element of GSTR-2B.
  • Taxpayers with more than 1000 records can either simply download the whole GSTR-2B or complete a record search beforehand.
  • GSTR-2B columns can be downloaded for free, filtered, hidden, and viewed.

Specific Details may be accessed in the GSTR-2B Summary

This summary may be split into two parts:

  • ITC Available: In this bracket, you may receive a summary of ITC available as of the date it was issued, which is further segmented into credit that can be used and credit that must be reverted.
  • ITC Not Available: A breakdown of ITC non-availability, further subdivided into ITC non-availability and ITC reverse.

Form-2B will be Auto-populated in which Manner?

  • The information submitted by your different suppliers in their respective GSTR-1, 5 and 6 between the 12th of the month (M) and the 11th of the month following would be automatically incorporated in your Form GSTR-2B.
  • For example, in this case, GSTR-2B compiled for July 2020 will include relevant information on all reports submitted by your multiple suppliers in their GSTR-1, 5, and 6 from midnight on July 12, 2020, to 11:59 pm on August 11, 2020.
  • The exact dates for which the essential documentation was obtained for the compilation of GSTR-2B are available on the internet site under the ”View Advisory’ option.

GSTR 2B’s Significance and Advantage

  • It will make it easier for taxpayers to try to reconcile ITC with their account books.
  • Because ITC data will be auto-populated in GSTR 3B, consumers can minimize time wasted, which would otherwise have been used in preparing their returns and making fewer inaccuracies.
  • It will aid and support in guaranteeing that the ITC is not acquired twice or entirely neglected.
  • It will assist in evaluating ineligible ITC.
  • It facilitates the final settlement of liabilities via reverse charge.
  • It will facilitate and support in acquiring reasonable financing for imports of products, particularly those from SEZs.

Circumstances in which ITC is Still Completely Unavailable in GSTR-2B

When the ITC remains inaccessible, mainly in the new form GSTR-2B, a few basic and fundamental criteria must be met; we have mentioned a few of them below for your comfort and convenience.

  • If the recipient resides in a separate part of the country, even though the provider and supply are in a similar state, ITC will be completely unavailable.
  • If the supplier has also not submitted their GSTR-1 form initially, in that case, ITC would be completely inaccessible.
  • If the supplier did not furnish transaction records in their GSTR-1, ITC would be completely unavailable.
  • If the provider has not deposited the government’s GST, ITC will be completely unavailable.
  • If both or each party does not get the whole money or the products and services, ITC will be completely inaccessible.
  • Suppose the claim arises after the given deadline specified in Section 16(4) of the CGST Act. In that case, the application will indeed be invalidated entirely (September 30 of the following financial year or the date of filing annual returns).
  • ITC will be completely unavailable when it is automatically disqualified under any of the contexts enumerated in the Blocked ITC Regulations.

Should I Currently Employ GSTR-2B or GSTR-2A?

Quite unlike GSTR-2A, which may fluctuate due to the late GSTR-1 submission or adjustments, GSTR-2B will be kept consistent since it is based primarily on GSTR-1 reported between two significant periods.

As a direct response, taxpayers are strongly encouraged to refer specifically to GSTR-2B before trying to take credit on GSTR-3B.

Alternatively, if they want supplementary relevant information, they should check their respective GSTR-2A (updated regularly).

There is no legal responsibility to try to reconcile GSTR-2A and GSTR-2B.

GSTR 2A is much less relevant since monitoring data modifications take much longer.

GSTR 2B, on the other hand, is highly beneficial in ITC reconciliations and correctly identifying compliant/non-compliant suppliers.

How Can I View and Print GSTR-2B Reconciliation Data?

Any taxpayer can download the GSTR-2B form from the GST portal of the Government of India.

  1. To commence, the customer needs to sign in to the GST site at www.gst.gov.in using their login credential.
  2. Users must then choose the Services tab, led by the Services tab, the Returns tab, and the Returns dashboard from the homepage.
  3. They will immediately find the ”File Returns” form on the next page. They will be asked to deliver relevant information such as the ”Financial” and the ”Return Filing Period”.
  4. You’ll see the GSTR-2B downloading and viewing icon if you move down on the very same page.
  5. The GSTR-2B documentation is available as a free download in JSON or EXCEL format.
  6. After hitting the ”Download” button, you will be presented with the appropriate, viable options.
  7. You may simply download the form in the standard format of your freely choosing in this particular approach.
  8. You can also hit the ”View” link to get a glimpse of the application before printing it.

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