With the advent of GST, the registered person is surrounded by many returns and statements which are required to be filed timely either in monthly, quarterly or in an annual frequency. Among all, GSTR 2A and GSTR 2B are purchase-related auto-populated statements. It gets auto-populated and has a direct link with the details furnished by the counterparty in various returns as stated below.
GSTR 2A and GSTR 2B gets auto-populated from the following returns
|
Registered Person |
GST Return |
|
Regular registered Seller |
GSTR 1 |
|
Non-Resident |
GSTR 5 |
|
Input Service Distributor |
GSTR 6 |
|
Person liable to deduct TDS |
GSTR 7 |
|
E-Commerce Operator |
GSTR 8 |
The main purpose of both 2A and 2B returns are the same but there lie a few differences. Let’s first have a bird’s eye view on comparison of both the return before discussing them into detail.
|
Basis |
GSTR 2A |
GSTR 2B |
|
Available for |
A purchaser of the goods |
A purchaser of the goods who are normal taxpayer, SEZ taxpayer, and casual taxpayer. |
|
Type |
Auto-populated |
Auto-populated |
|
Beneficial for |
Matching ITC |
Matching ITC |
|
Updated |
Real-time basis |
On a particular date, i.e, every 14th of the next month |
|
Cut Off Date |
No cut off date, as it is a dynamic statement and updates regularly |
Depending on the return filing frequency, the cut-off date is either 11th of the next month or the 13th of the next month. The GSTR 2B is generated every 14th of the month. |
|
Nature |
Dynamic |
Static |
|
Information |
Detailed information regarding all purchases made |
Detailed information regarding all the purchases made |
|
Bifurcation of eligible and ineligible ITC |
No bifurcation is provided for eligible ITC and ineligible ITC |
It provides a bifurcation for the eligible ITC and ineligible ITC |
|
Source of auto-population |
It gets auto-populated by compiling the data from returns of the supplier, such as GSTR 1, GSTR 5, GSTR 6, GSTR 7, GSTR 8 |
It gets auto-populated by compiling the data from returns of the supplier, such as GSTR 1, GSTR 5, GSTR 6. |
|
Maximum ITC entries that can be viewed |
500 rows |
1000 rows. |
Discussion over GSTR 2A
GSTR 2A is a system generated, auto-populated dynamic statement reflecting details of all the purchases made in a month. It is updated on a real-time basis and gets auto-populated by compiling data from the returns filed by the counterparty i.e., the supplier of the gods. The source of auto-population varies for different registered persons. They are GSTR 1, GSTR 5, GSTR 6, GSTR 7, GSTR 8.
Due to its real-time updating feature it becomes difficult for the user to track the ITC reflected in the return. Updating the reconciliation statement regularly confuses and increases the administrative burden on all registered users.
Discussion over GSTR 2B
To minimize the drawback of GSTR 2A, a new statement was launched from the August 2020 tax period. It is a static, month-wise auto-populated statement reflecting details of all the purchase-related details. GSTR 2B is a time-bound return generated on a particular date and is not updated continuously.
There is a cut-off date for the GSTR 2B auto-populated feature. The source of data for auto-population is GSTR 1, GSTR 5, and GSTR 6 filed by the counterparty, i.e. the supplier of goods. Depending on the frequency of filing the returns the cut-off date varies.
|
Supplies From/ Type |
Return |
|
Normal taxpayer filing at monthly frequency |
GSTR 1/ IEF - Cut Off Date11th of the next month |
|
Normal taxpayer filing at a quarterly frequency |
GSTR 1/ IEF - Cut Off Date 13th of the next month |
|
Non-Resident Taxpayer |
GSTR 5 - Cut Off Date 13th of the next month |
|
Input Service Distributor |
GSTR 6 - Cut Off Date 13th of the next month |
|
Import from overseas |
All import data received by 13th of the next month |
|
Import from SEZ |
All import data received by 13th of the next month |
The GSTR 2B after compiling the data from the above-mentioned returns generates a statement to the recipient of the goods on every 14th of the next month. Any return filed by the counterparty beyond the cut-off date is not reflected in the 2B of the respective month. The GSTR 2B generated is a read only statement and contains no provision for modification. It also provides a bifurcation for the eligible ITC and ineligible ITC in the statement.
For example, a normal taxpayer filed GSTR 1 for March 2023 late on 15th April 2023. Since it crossed the cut-off date, it will not be reflected in the GSTR 2B for March 2023. However, the invoices will be reflected in the GSTR 2B of the next month i.e. April 2023.
Delay in claiming ITC will result in working capital blockage affecting the large taxpayers.
Connection with GSTR 3B
The GSTR 3B is a self-declaration summary return for both inward and outward supplies in a consolidated manner. The inward supplies figure is auto-populated from the GSTR 2B. The taxpayer must ensure that the purchase register tallies with the GSTR 2A and a proper reconciliation are prepared in case of discrepancies. The ITC claimed by the taxpayer must be according to the rules and sections of the Act and no excess tax credit is claimed. Major differences between GSTR 2B and GSTR 3B are a matter of concern and may attract litigations. It should be noted that with Rule 36(4), the registered person can claim the ITC not exceeding 5% over and above the eligible ITC.
It becomes very important to reconcile GSTR 2A, GSTR 2B, and GSTR 3B with the books of account and prepare a proper reconciliation.
It should be noted that the GST authorities have started issuing notices to persons due to discrepancies in ITC claimed and reflected in GSTR 3B and GSTR2B. A reconciliation statement prepared by the taxpayer can save them from ligations as it ensures that the credit is claimed is only in respect of the tax paid by the supplier. It also ensures no invoice is overbooked or missed and minimizes the error committed while reporting details in GSTR 1 and GSTR 3B.
Hence the interlinking between all these returns is important as it forms the base for any discussion. Though, making reconciliation of all increases the workload on the admin staff.
Disclaimer: This article is written in simple language for easy understanding. You may refer to the relevant Notification, Circular, Rules, and Acts for legal steps. Discrepancies if any may be brought to the notice of the author. Thank you
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