1. What is GSTR-2B? How to claim ITC in GSTR 2B? And procedures to access GSTR 2B on the GST Portal
It's been a couple of weeks since the form GSTR-2B was introduced on the GST portal. However, GSTR-2A and GSTR-2B appear to be the same in starting. But still, there are certain distinctions in some manner. The government has now left the new return forms which were of three types of return forms – the first is normal, then Sahaj and Sugam. and settled for continuing the present return filing system of GSTR-1 and GSTR-3B with some additions and changes. The government has introduced a system in which taxpayers have to first file the form GSTR-1, then file form GSTR-2B for all input tax credits (ITC), and after that he/she needs to file form GSTR-3B in which all details from GSTR-1 and GSTR-2B will be auto-populated. Form GSTR-2B is not needed to be filed by the taxpayers. It is for information purposes only. Form GSTR-2B as opposed to GSTR-2A stays constant for a period of time. GSTR2B shall be available to all regular taxpayers. Every recipient can generate it on the basis of the GSTR-1, GSTR-5, and GSTR-6 furnished by their suppliers. The statement will clearly show document-wise details of ITC eligibility.
2. What is GSTR 2B?
GSTR-2B is a fixed statement of available Input tax credit (ITC) for the taxpayer generated on the basis of Form GSTR-1, Form GSTR-5, and Form GSTR-6 filed by recipients’ counterparties before the 14th of the next month for which the statement is being rendered. Unlike Form GSTR-2A where invoices are reflected even when invoices are uploaded and saved in these returns Form GSTR-1, GSTR 5, and GSTR 6, the statement GSTR-2B will have invoices only when the separate return is filed. The statement will undoubtedly demonstrate input tax credit (ITC) available and not available for every document which is filed by any supplier for a recipient. For example, for the month of July 2020, the statement will be rendered on the 14th of August 2020.
3. How to Claim ITC in GSTR 2B?
Following are the steps to claim ITC in GSTR-2B. Credits under GST must currently be claimed using the subsequent procedure: Seller submits invoice-by-invoice sales data (or the 13th of the month after the quarter) every month or quarter, by the 11th of the next month. It is defined in the GSTR-1 of the taxpayer’s reporting frequency on the GST portal. The buyer or purchaser can review the invoices uploaded by the vendor in Form GSTR-1 on his Form GSTR-2B. The purchaser is permitted to claim an input tax credit (ITC) on Form GSTR-3B Based on the tax invoices furnished by the vendor/seller and discovered in his FormGSTR-2B. For a tax period, the claims can be up to 105 percent of the qualifying input tax credit in GSTR-2B. As a consequence, a taxpayer can claim an additional 5% input tax credit for invoices/debit notes that were not posted in GSTR-2B by the applicable suppliers. When the suppliers or vendors successfully uploaded invoices in later tax periods, then they must be reconciled and altered.
4. Procedures to access GSTR-2B on the GST portal?
The following are the actions that need to be followed for accessing GSTR-2B, available from 12th August 2020: The first step is to log in to the GST portal. You can log in with your relevant details to log in on the website. After getting redirected to the website go to the ‘Returns Dashboard’. In the second step, select the relevant phase on tax as well as the financial year and month. (a) Intend to download: In case the total number of documents in all of the tables of Form GSTR-2B is more than 1,000, then you can either use the advanced probe option or download the document with the details in excel/JSON format from the GSTR-2B download page. Click the download button to download GSTR-2B. (b) Intend to view: In case the number of line items is less than the number 1,000, then you can use the ‘View’ option. In the fourth step, take appropriate action on the GSTR-2B based on the option chosen in the previous step. (a) Intend to download: If you want to download the GSTR-2B, then click on the button shown as “Generate JSON File To Download” to check out the statement on Offline Matching Tool. Alternatively, click on the “Generate Excel file to download” button to obtain the data in the excel file on your system. (b) Intend to view: GSTR-2B screen will be shown and that will consist of two tabs called Summary And all tables. The Summary tab is further categorized into two parts: Part A (ITC Available): ITC (input tax credit) summary value of credits available as of its creation date and is split into credit that can be taken and credit that must be inverted (Table 3) Part B (ITC not Available): ITC (input tax credit) summary value of credits not available and is divided into input unavailable and ITC reversal (Table 4). You can also take 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 will have the details of the input tax credit that can be sorted as per the tables of the Form GSTR-2B such as B2B, B2BA, B2B CDNR, B2B CDNRA, ISD, ISDA, IMPG, and IMPGSEZ. However, the input tax credit is shown document-wise with filters to sort data as per your preferences.
5. Difference between GSTR-2A with GSTR-2B
There are some fundamental distinctions between these two GSTR-2A and GSTR-2B. Form GSTR-2B and GSTR-2A are auto-drafted statements containing purchase transactions' details. Below are significant differences expressed briefly. GSTR-2A GSTR-2B Form GSTR-2A is a systematic-generated return showing the inward supplies (purchase-related transactions). Form GSTR-2B is a systematic-generated statement showing the input tax credit details (ITC). Form GSTR-2A is based on the auto-generation with the details/ information provided by supplier/seller/ counterparty vide following returns- Form GSTR-1 – Returns are to be filed by a normal registered person. Form GSTR-5 – Returns are to be filed by a non-resident. Form GSTR-6 – Returns are to be filed by an input service distributor. Form GSTR-7 – returns are to be filed by tax deductor. Form GSTR-8 – returns are to be declared by an e-commerce operator liable to collect the tax. The details, in Form GSTR-2B, are auto-populated on the basis of the next returns provided by the suppliers/seller- Form GSTR-1; Form GSTR-5; Form GSTR-6; and Import data as received from ICEGATE. It also covers the details of the import of goods and an inward supply of goods from SEZ units/ developers. The statement gets generated on its own on the 12th of the next month.
6. Features of GSTR 2B
Form GSTR-2B statement presents the details on the import of goods considered from the ICEGATE system consisting of details of the inward supply of goods from Special Economic Zone units/developers. Regardless, It is not comprised in the released version of form GSTR-2B for the month of July but will be available soon. A summarized statement will show whether all the input tax credits available or not are available under each section. The advisory delivered for each section rectifies the action that can be taken by the taxpayers in the particular section under GSTR-3B. Details of all invoices, and credit and debit notes, along with options to view and download. All taxpayers are directed to reference the detailed advisory related to form GSTR-2B on the same portal before using the statement. Accessing Form GSTR-2B by navigating to the GST Portal is easy and convenient for taxpayers.
Frequently Asked Questions
What is Gstr 2B?
GSTR-2B is a fixed statement of available Input tax credit (ITC) for the taxpayer generated on the basis of Form GSTR-1, Form GSTR-5, and Form GSTR-6 filed by recipients’ counterparties before the 14th of the next month for which the statement is being rendered.
What are the inputs of GSTR-2B?
All the B2B details/documents are filed by suppliers in their monthly or quarterly form GSTR-1, IFF, and form GSTR-5 filed by NRTP taxpayers. Information filed by ISD taxpayers in their form GSTR-6. Information of Input tax credit of IGST paid on import of goods filed in ICEGATE.
Is it possible to revise the GSTR-2?
No. It is not possible “once revised” to revise Form-GSTR-2B. But there can be some amendments that are possible to be made in GSTR-2B.
Who should file GSTR-2?
All the GST registered tax-payers are liable to file GSTR-2 except input service distributors, e-commerce operators, person opting for compounding scheme, tax collectors, tax Deductor, and non-resident dealers
Is it feasible to claim an input tax credit in addition to GSTR-2B?
The government has rescinded the ‘Provisional Input Tax Credit” program, which previously allowed taxpayers to claim a 5% provisional Input Tax Credit on eligible ITC. As an outcome, firms are not liable elongate to claim more input tax credit than the GSTR-2B statement allows.
Can I make some adjustments in GSTR-2B?
No. Because the form GSTR-2B is a read-only static input tax credit statement, that’s why you will not be able to make any changes or add a document as a taxpayer.