GSTR 2A VS GSTR 2B l gstr 2b l what is gstr 2a l gst 2a l

Introduction-

Goods and Service Tax Return (GSTR) is a document that contain all the details relating to Purchases, Sales, Input Tax (Tax paid on Purchases) Output Tax (Tax collected on sales). Once GSTR is filed, assesses have to pay the resulting tax liability. This is why it is important to learn the difference between 2a and 2b under GST.

Table of Contents

What is GSTR 2A?

GSTR 2A is an auto drafted form generated in the recipient’s login under the GST Portal, covering all the outward supplies (GSTR 1), declared by the supplier. When the supplier files GSTR 1 in any particular month disclosing sales, the corresponding details are auto-populated in GSTR 2A of the recipient. It is important for every taxpayer to reconcile the ITC claimed in GSTR 3B with GSTR 2A. It is read only document with the list of all the invoices from different sellers during the month & is for information purpose only. It is a real-time data which is available for every tax period with the details of ITC extracted from the GSTR-1 filed by the supplier. GSTR 2A is auto-populated & is divided into 4 categories based on the following

Part A consists of B2B transactions details & is auto-populated from GSTR 1 & GSTR 5
Part B consists of ITC distributed by ISD & is auto-populated from GSTR 6
Part C consists of TDS & TCS details & is auto-populated from GSTR 7 & 8
Part D consists of Import of goods from overseas/SEZ/developers on bill of entry & is auto-populated from ICES.

Here is the image for more clarification-

How GSTR 2A is auto-drafted?

GSTR 2A is auto-drafted from the following returns-

GSTR 1, filed by regular registered seller.
GSTR 5, filed by Non-resident seller.
GSTR 6, submitted by Input Service Distributor (ISD).
GSTR 7, filed by the person who is liable to deduct TDS.
GSTR 8, filed by E-Commerce operators.
ICES- Indian Customs EDI System

How to file GSTR 2A?

GSTR 2A is a read only document that is auto drafted based on the above mention forms. It contains list of all the invoices from various sellers during the month. Thus, it cannot be filed, but the Copy of GSTR 2A can be downloaded.

This is why it is important to learn the difference between 2a and 2b under GST.

What happens if the seller delays in filing GSTR 1?

GSTR 2A is a read only document & is auto-drafted. If filing GSTR 1 is delayed, then ITC cannot be claimed, further when seller updates his GSTR 1, the information will be auto-drafted in the next month & then the eligible ITC can be claimed.

However, as per Rule 36(4), if the seller delays in filing GSTR 1 but uploads invoices or debit notes under Section 37(1), then the taxpayer is allowed to claim ITC on the basis of invoices or debit notes appearing in GSTR 2A, only to the extent of 5% of the eligible ITC. Remaining ITC i.e., 95% of the eligible ITC shall be claimed after the supplier furnishes correct GSTIN & correct amount of tax in the return.

Note

While applying the condition of Rule 36(4), the taxpayer shall consider the conditions of Section 16 &17.
The taxpayer has to monthly reconcile the eligible ITC in form GSTR 3B & form GSTR 2A.

What is GSTR 2B?

If you are looking for what is gstr 2b? then you are at the right platform. GSTR 2B is a new month-wise auto-drafted statement for taxpayers on the GST portal. The statement was launched from August 2020 and generated from 12th September 2020. It is a uniform read only auto-drafted ITC statement, which is not filed as return. It is constant in nature & cannot be changed based on future actions of supplier. Recently GST portal has come up with a new facility of system generated GSTR 3B summary based on the inputs provided by GSTR 1 & GSTR 2B. All details from GSTR 1 & GSTR 2B will be auto-drafted in GSTR 3B. GSTR 2B is divided into 2 summaries.

ITC Available- Input Tax Credit (ITC) available on the date of generation & is further divided into 2 categories-
The supplier must-
- ITC that can be availed
- ITC that is to be reversed
Non-Availability of ITC- Summary of Non-availability of Credit & is further divided into 2 categories-
The supplier must-
- ITC not available
- ITC reversal
- ITC reversal

Note

A PDF & Email feature is also added to the form.
The Form will show the amount of ITC is available to the taxpayer or not.
The form will summarize the ITC credits attached with GSTR 3B.
Advance search & filter options will help the assesses to view documents beyond 1000 records.

Here is the image for more clarification-

ITC Available

ITC not available

How GSTR 2B is auto-drafted?

GSTR 2B is auto-drafted from the following returns

GSTR 1- GSTR 1 is filed by regular registered seller.
GSTR 5- GSTR 5 is filed by Non-resident seller.
GSTR 6- When Input Service Distributor (ISD) submits GSTR 6.
ICES- Indian Customs EDI System

Who can view GSTR 2B?

GSTR 2B means an auto-drafted statement, which is available for

Normal taxpayers
Special Economic Zone (SEZ) Taxpayers
Casual Taxpayers

What contents are included in GSTR 2B?

The contents included in GSTR 2B

Statement showing available and non-available ITC for every section.
Advisory clarification for every section that taxpayers must take.
Advisory for generating and applying of GSTR 2B.
Detail of documents such as debit notes, credit notes, invoices etc.
Cut off dates
Import of goods
Inward supplies from SEZ developers or units

What is the Difference between GSTR 2A and GSTR 2B?

GSTR 2a VS 2b

Basis	GSTR 2A	GSTR 2B
Nature	It is dynamic in nature. It may vary day to day, when the supplier uploads the documents.	It remains constant in nature. GSTR 2B cannot change, based on suppliers’ future actions.
Information Source	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 Claim	Does not contains any advisory for the taxpayer to take any actions	Contains advisory against each section for the taxpayer to take any action accordingly
TDS & TCS	Contains data of TDS & TCS	Does not contains data of TDS & TCS
Availability of ITC	Details of ITC on IGST (SEZ units and overseas) available on imports from ICEGATE system to GST system.	Details of ITC, on IGST (SEZ units and overseas) obtained from ICEGATE system.
Reflection of ITC entries	Reflection of ITC entries from various sources- · When GSTR 1 or IFF* is saved or filed or submitted · When GSTR 6 is submitted · When GSTR 7 & 8 are filed	Reflection of ITC entries from various sources- · When GSTR 1 or IFF*, GSTR 5 & GSTR 6 are filed.

*An Invoice Furnishing Facility (IFF) has been introduced for GSTR 1 Quarterly taxpayers to upload their supply invoices, so that the recipient of supplies can avail Input Tax Credit regularly.

In case of any Query related to GSTR 2B or gstr 2a vs 2b or what gstr 2b means or any of the GST Return, then contact Manthan Experts for immediate Assistance.

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