If you are a GST-registered taxpayer, you would be familiar with filing various returns such as GSTR-1, GSTR-3B, and GSTR-9. However, one return that has gained importance over the past year is GSTR-2B.
What is GSTR-2B?
GSTR-2B is a static, read-only document that contains details of inward supplies for a given tax period. The document is generated based on the information provided in the GSTR-1 and GSTR-5 returns filed by the suppliers. GSTR-2B is generated monthly and made available to taxpayers on the 12th of the following month.
Why is GSTR-2B important?
GSTR-2B is important for several reasons. Firstly, it helps taxpayers reconcile their input tax credit (ITC) claims with the details provided by their suppliers. This ensures no discrepancies in the ITC claimed, which can lead to penalties and interest. Secondly, GSTR-2B provides taxpayers with a comprehensive view of their inward supplies, which can help them manage their cash flows and plan their purchases accordingly.
1st February 2022 Budget 2022 updates- 1. In GSTR-2B, available under Section 38, ITC cannot be claimed. 2. Invoices and debit notes of a financial year can be claimed earlier—the 30th November of the following year or the date of filing the annual return. 3. GSTR-2B has changed Section 38 to ‘Communication of details of inward supplies and input tax credits’. It specifies the manner, time, conditions, and restrictions of ITC claims and removes the two-way communication process in GST return filing in Form GSTR-2 for suspended returns. In addition, taxpayers will receive information about eligible and ineligible ITCs. 4. As part of the revisions to section 41, references to provisional ITC claims have been removed, and self-assessed ITC claims with conditions have been prescribed. 5. Sections 42, 43, and 43A regarding provisional ITC claims, matching, and reversal are eliminated. 6. Section 50 has been amended to provide for the levying of interest on excess ITC claims and utilisation, as well as the method of calculating interest. 29th December 2021 CGST Rule 36(4) has been amended in order to remove 5% additional ITC over and above ITC shown in GSTR-2B. From January 2022, businesses will only be able to claim ITC if it is reported by the supplier in GSTR-1/IFF and appears in GSTR-2B. 21st December 2021 From 1st January 2022, taxpayers will only be able to claim 5% provisional ITC under CGST Rule 36(4) if it appears in GSTR-2B.
How to Reconcile GSTR 2B?
Step 1: Download the GSTR-2B Statement
Begin by downloading the GSTR-2B statement from the GST portal. This statement is accessible for download on the 12th of each month. Log in to the GST portal and download the statement in Excel or JSON format.
Step 2: Consolidate the Inward Supplies
Next, consolidate the inward supplies from the GSTR-2B statement with the books of accounts. Ensure that all inward supplies have been accurately recorded in the books of accounts, avoiding any discrepancies.
Step 3: Match the ITC Available in GSTR-2B and Books
Now, compare the Input Tax Credit (ITC) available in the GSTR-2B statement with the ITC available in the books of accounts. Ensure that the ITC claimed in GSTR-3B matches the ITC recorded in the books of accounts.
Step 4: Rectify the Mismatch
In case there is a discrepancy between the ITC claimed in GSTR-3B and the ITC available in the books of accounts, you must rectify it. You can adjust the ITC claimed in the subsequent month or make the necessary entries in the books of accounts to align them.
What are the Details Available in GSTR 2B Reconciliation?
Fully matched: Transactions that are identical in both your records and the GST portal. No further action is required.
Partially matched: These transactions need your attention, as some match while others do not. Further investigation and action are necessary.
Available only in books: Transactions that are present in your records but missing from the GST portal. You need to inform your suppliers about these missing invoices so they can upload them.
Available only in the GST portal: Transactions that are only found on the GST portal and not in your records. You should review these invoices and record them to match those available on the GST portal, typically in the current return period.
Our GST interest calculator online helps you calculate GST interest accurately and quickly.
Importance and benefits of GSTR-2B
Taxpayers can conveniently reconcile ITC with their own books of account and records using the data in GSTR-2B. As a result, they will be able to identify documents more easily in order to ensure the following:
- It is only possible to claim the input tax credit once for the same document.
- Where required, the tax credit is reversed in accordance with the GST law in their GSTR-3B.
- For applicable documents, including imports of services, GST is correctly charged on a reverse charge basis.
- An invoice/debit note must be credited for input tax under the appropriate tables or columns in GSTR-3B.
When was GSTR-2B made available?
Since August 2020, GSTR-2B has been available for download. It could be generated by recipient taxpayers once a month on the 12th of the month following the tax period until January 2021. On 12th September 2020, for example, GSTR 2B for August 2020 can be accessed.
In January 2021, taxpayers will be able to generate the GSTR-2B on or after the 14th of each month for a given tax period. For example, GSTR 2B for October 2021 can be accessed on 14th November 2021. Under the ‘View Advisory’ tab on the government portal, you can view the timelines for the generation of GSTR-2B.
Comparison of GSTR-2A and GSTR-2B
| Parameter | GSTR-2A | GSTR-2B |
|---|---|---|
| Type of statement | A dynamically generated statement that provides ITC details based on the supplier’s data | A static statement that provides ITC details based on the supplier’s data |
| Nature of the statement | Changes dynamically as suppliers upload documents | Remains constant for a given month and cannot be changed |
| Frequency of availability | Monthly | Monthly |
| Source of information | GSTR-1 or IFF*, GSTR-5, GSTR-6, GSTR-7, GSTR-8, ICES | GSTR-1 or IFF*, GSTR-5, GSTR-6, ICES |
| GSTN advisory on ITC claims | Does not contain information or advisory on ITC claims | Contains an advisory against each section on whether the ITC is eligible, ineligible, or reversible |
| Reflecting ITC entries from sources | GSTR-1: saved/filed/submitted; GSTR-6: submitted; GSTR-7 and GSTR-8: filed | GSTR-1, GSTR-5, or GSTR-6: filed |
| Cut-off date to view statement | Not applicable as it is dynamic | 11th/13th of the succeeding month, statement generated on the 14th of the succeeding month |
| Maximum ITC entries viewable | 500 rows | 1,000 rows |
How to access GSTR-2B on the GST portal?
Following are the steps to access GSTR 2B, which is available from 12th August 2020:
Step 1: Log in to the GST portal. To log in, taxpayers must use their credentials.
Step 2: Go to the returns dashboard.
Step 3: Select the relevant tax period. Choose the month and year.
Step 4: Click ‘View’ or ‘Download’ on the ‘GSTR-2B’ tile.
(a) Intend to download:
The GSTR-2B download page provides the option of either using the advanced search option or downloading the document information in Excel/JSON format if the total number of documents in all tables exceeds 1,000. Go to the GSTR-2B download page by clicking the download button.
(b) Intend to view:
Use the ‘View’ option if the number of line items is less than 1,000.
Step 5: Based on the option selected in Step 4, take appropriate action on the GSTR-2B.
(a) Intend to download:
To check out the Offline Matching Tool statement, click on the button known as “Generate Json File To Download”. To obtain the data in the excel file on your computer, click on the “Generate Excel file to download” button.
(b) Intend to view:
The GSTR-2B screen appears with two tabs titled Summary and All Tables.
The Summary tab is further classified into two parts:
- Part A (ITC Available):
The ITC summary value of credits is divided into credit that can be availed of and credit that must be reversed as of the generation date
- Part B (ITC not Available):
It is classified into two categories: ITC unavailable and ITC reversal.
You can access the documents by clicking on the hyperlinked text of B2B – Invoices, B2B – Debit notes, B2B – Invoices (Amendment) and B2B – Debit notes (Amendment).
The All Tables tab contains the ITC information that can be sorted according to the tables of the GSTR-2B form, such as B2B, B2BA, B2B CDNR, B2B CDNRA, ISD, ISDA, IMPG, and IMPGSEZ.
Further, ITC appears document-wise (document details) with filters to sort data as per your need. Further, you can filter data supplier-wise as well.
Note: On the bill of entry – IMPG table, only document details are available and no supplier details are available.
GSTR-2B contents and features
Input tax credits for purchases from regular taxpayers and non-resident taxable persons will be available in GSTR-2B. Additionally, the input tax credit distributed by the input service distributor shall also be available.
GSTR-2B contains the following contents:
- Each section shows ‘ITC available’ and ‘ITC unavailable’.
- Each section’s advisory clarifies what taxpayers need to do.
- View and download invoices, credit notes, debit notes, etc.
- GSTR-2B cutoff dates and advisory.
- From GSTR 2B of August 2020 onwards, imports from SEZ units/developers will be available.
The form GSTR-2B is classified into two categories:
- ITC is available: PART-A contains information on inward supplies and credit-debit notes (CDN), including amendments and imports. ITC for supplies from registered persons, ITC from ISD, ITC towards inward supplies via reverse charge, and imports. PART-B, ITC Reversal, has a section called ‘Others’ that contains details of credit notes and amendments.
- ITC Not Available, PART-A includes purchase invoice or CDN details, including any amendments, divided into three parts- All other ITC for supplies from registered persons, ITC from ISD, and ITC towards inward supplies on reverse charge. PART-B has CDN details and amendments under ‘Others’.
In the following scenarios, the input tax credit will be marked as ‘not available:
- In the event that the time limit for availing input tax credit on an invoice or debit note has expired in accordance with section 16(4) of the CGST Act (the 30th September of the year following a financial year or the date on which annual returns are filed, whichever is earlier).
- In this case, the state of the supplier and the place of supply is the same, while the recipient is located in another state.
- When an invoice or debit note for the supply of goods or services is not eligible for Input Tax Credit by the purchaser.
GSTR-2B features include:
- Download the summary statement as a PDF.
- Instantly download ITC details section-by-section.
- Section-wise advisory is available.
- Text search for all generated records.
- View, filter, and sort data.
- You can hide/view columns as you like.
- GSTR-2B can be downloaded in full if it contains more than 1,000 records.
- GSTR 2B will be generated and sent to the taxpayer via email or SMS.
- Suppliers/ISDs only file documents in their GSTR-1/5/6.
| Parameter | Matching Process |
|---|---|
| Input tax credit taken only once | Yes |
| Credit reversal in GSTR-3B | Yes |
| Tax charged and paid on reverse charge basis | Yes |
| Tax credit availed for tax actually paid to supplier | Yes |
| Purchase invoices in GSTR-3B are in compliance with Section 16 of the CGST Act | Yes |
| Provisional tax credit (5% of GSTR-2B) for GSTR-3B | Not available after 1st January 2022 |
| No excess tax credit claimed | Yes |
| ITC availed before deadline under GST law | Yes |
| No major mismatches between GSTR-2B and GSTR-3B | Yes |
| Matching process | Importance |
|---|---|
| Matching GSTR-2B with purchase books | More important than matching with GSTR-3B |
| Values from GSTR-2A | Not needed once values are taken from GSTR-2B |
| Matching parameters | GSTIN, document type, document number, document date, total taxable value, and total tax amount |
| Missing invoices or debit notes in GSTR-2B compared to purchase register | Inform suppliers and upload in next GSTR-1 return |
| Reconciliation frequency | More frequent and suitable from 14th of month subsequent to tax period |
| Reasons for mismatches | Examples |
|---|---|
| Period of reporting invoices is different from period of accounting | – |
| Unaccounted debit or credit notes issued by supplier | – |
| Supplier amends returns later on | Differences in sales details between books and GSTR-1 auto-populated from e-invoicing system |
FAQ:
1.Why is there a difference between GSTR-2A and 2B?
The main difference between GSTR-2A and GSTR-2B is that GSTR-2A is a dynamic statement that reflects the details of inward supplies uploaded by suppliers on a real-time basis, while GSTR-2B is a static statement that provides a summary of the input tax credit available to the taxpayer based on the data filed by suppliers in their GSTR-1 return.
2.Should taxpayers refer to the GSTR-2A or GSTR-2B for their input tax credit claims?
Taxpayers should refer to GSTR-2B for their input tax credit claims, instead of GSTR-2A.
3. Who is eligible for GSTR 2B?
All taxpayers registered under GST are eligible for GSTR-2B
