When filing GST returns, GSTR-2A and 2B are the common terms one would come across. These are the two types of GST returns providing information about a taxpayer’s available input tax credit. GSTR-2A provides the details of the inward supply of goods and services that have been filed by the suppliers in their GSTR-1/5 return. Conversely, GSTR-2B is a static statement that provides an auto-generated Input Tax Credit (ITC) summary available to taxpayers based on the data filed by the suppliers in their GSTR-1/5. The following sections will briefly describe the difference between GSTR-2A and 2B to guide which statement is appropriate for ITC.
Introduction to GSTR-2A
GSTR-2A is an auto-generated statement reflecting all inward supplies a taxpayer procures during a specific tax period. The GST portal automatically generates it based on the data uploaded by the suppliers in their GSTR-1/5 returns.
The statement contains crucial information, including:
- Name and GSTIN of Supplier
- Invoice/Credit Note date and number
- Whether RCM applicable or not
- Tax amount and taxable value
- Place of supply
- GSTR-1 and GSTR-3B filing date and status
It includes all transaction details related to taxpayer’s procured Goods & Services from various suppliers during a period. Additionally, the statement includes:
- ISD Credits: Information about Input Service Distributor (ISD) credits, which are auto-populated based on Form GSTR-6 submission by the ISD.
- TDS & TCS Credits: Details of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are included, based on the filing of Form GSTR-7 and Form GSTR-8, respectively, by the counterparties.
- Import of Goods: Details regarding the import of goods, including those from overseas, are also auto-populated based on bill of entry data received from the Indian Customs Electronic Data Interchange Gateway (ICEGATE) portal of Indian Customs.
The GSTR-2A statement serves as a useful tool for taxpayers to reconcile their ITC with the details uploaded by their suppliers. The taxpayers can match the details of the inward supplies with their purchase register and claim the ITC accordingly. However, it is not the final proof of purchase, as it only reflects details the supplier submits. The taxpayer must verify their accuracy before filing an ITC claim.
Also Read: What Is CGST & SGST? Key Differences Between Them
Introduction to GSTR-2B
GSTR-2B provides an auto-generated summary of ITC available to a taxpayer based on the data the suppliers file in their GSTR-1 returns. It is automatically drafted on the 14th of the succeeding month after the tax period.
The statement includes important details such as:
- ITC Available as per GSTR-2A: This includes the details of ITC available as reported in GSTR-2A, which is based on the suppliers' GSTR-1/IFF and GSTR-5 (non-resident taxable person) submissions.
- ITC on Imported Goods: It reflects the ITC available as per the goods imported, based on the information filed in ICEGATE.
- ITC from ISD: The statement also includes information regarding the ITC available from ISD.
Unlike GSTR-2A, GSTR-2B does not use real-time data. It consolidates information from the GSTR-1 and GSTR-3B filed by the suppliers, along with data from GSTR-6 filed by ISD taxpayers. Once generated, GSTR-2B remains static. This means that any changes or amendments made by suppliers in subsequent periods will not be reflected in the GSTR-2B of a given month. However, the details filed by the suppliers in the GSTR-1 post 13th of the month will reflect in the GSTR-2B of the subsequent month.
The GSTR-2B statement is a useful tool for taxpayers to ascertain their ITC availability for a particular tax period. Taxpayers can use this statement to match the details of the ITC with their purchase register and can claim the ITC accordingly. The introduction of GSTR-2B aids in enhancing compliance and accuracy in ITC claims. It simplifies the reconciliation process for taxpayers and helps minimize errors in the GST filings.
Also Read: GST On Sale Of A Used Car - All You Need To Know
Benefits of GSTR 2A and 2B
Both GSTR 2A and 2B have unique benefits. Understanding them helps taxpayers remain compliant with the applicable GST regulations and avoid fines and penalties. They assist taxpayers in performing a comprehensive and quick reconciliation of their orders and facilitate accurate ITC claims. Now, take a look at the benefits of both individually.
Benefits of GSTR-2A
- Accuracy of Information: Using GSTR-2A, a taxpayer can get a comprehensive view of all purchases made during a specific tax period. Since it uses information that the suppliers submit, it auto-populates data to ensure accuracy and eliminate any chances of errors arising from manual entries.
- Reliability of Information: GSTR-2A is a reliable information source that taxpayers can use to claim their ITC. It serves as a purchase proof, providing a trail of transactions. Businesses can use this document to verify their purchases.
- Transparency: Information in the form allows taxpayers to verify their purchase details, ensuring transparency in the GST system, preventing fraudulent activities, and promoting fair trade.
Also Read: GST and It's Various Facets
Benefits of GSTR-2B
- Time-Saving: The GST portal automatically generates GSTR-2B, it saves the time required to gather details from multiple sources.
- Consolidated View: With a consolidated view of the available ITC, a taxpayer can reconcile purchases and claim credits accurately.
- Reconciliation Made Easy: The form simplifies the reconciliation of purchases made during a specific tax period. Available for the entire month, the document provides a summary of all purchases, helping businesses reconcile their books.
- Better Cash Flow: With GSTR-2B, a business owner can get a clear view of the available ITC, improving their cash flow and reducing tax liabilities.
Also Read: What is the GST Composition Scheme? Check Benefits, Rules & Limits
Difference Between GSTR-2A and GSTR-2B
Here is an outlook of the GSTR 2A and 2B difference:
| Parameter | GSTR-2A | GSTR-2B |
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| Generation Date | GSTR-2A gets populated as soon as the supplier uploads the invoice in GSTR-1. | The GST portal generates it on the 14th of each month. |
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| Nature | GSTR-2A is dynamic in nature. It keeps changing in real time as the suppliers update their data in the GSTR-1. | GSTR-2B is static in nature, as it does not change once generated. |
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| Cut-Off Date | Since GSTR-2A is a dynamic document, it does not come with a cut-off date. (i.e it updates as when any changes are made in the GSTR-1/5/6 in any tax period) | Since GSTR-2B is static, its cut-off date is 14th of every month (i.e information filed in GSTR-1/5/6 within the due date i.e till 13th of the tax period shall be reflected in the GSTR-2B on 14th). |
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| Data Source | GSTR-1/IFF, GSTR-5 (Non-resident), GSTR-6 (ISD), GSTR-7 (TDS), GSTR-8 (TCS) | GSTR-1/IFF, GSTR-5 (Non-resident), GSTR-6 (ISD) |
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| Bifurcation of Available ITC | GSTR-2A does not provide any bifurcation of the available ITC. | GSTR-2B briefly bifurcates eligible and ineligible ITC. |
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| Accuracy of Information | GSTR-2A is a system-generated document based on the information provided by the supplier. Since it does not guarantee data accuracy, one must cross-verify the records. | GSTR-2B is a static document without real-time updates. However, taxpayers should stay mindful and cross-verify the information to ensure accuracy. |
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Also Read: GST on Personal loans – Processing Fees, Documents, EMI
Conclusion
Reconciling GSTR 2A and 2B is vital to GST compliance. Understanding the key difference between GSTR-2A and GSTR-2B ensures accurate ITC claims and proper GST compliance. Businesses can effectively handle ITC claims while avoiding errors and maintaining correct records. Moreover, it avoids cash flow issues, enhances business relationships, reduces error, and helps businesses plan taxes effectively.
Frequently Asked Questions
1. How is GSTR-2A useful to a taxpayer?
GSTR-2A allows taxpayers to reconcile their purchases with the information provided by their suppliers. It helps in identifying any discrepancies and ensures accurate input tax credit claims.
2. Is GSTR-2B mandatory for all taxpayers?
GSTR-2B is not mandatory, but it is provided to assist taxpayers in reconciling their ITC. Taxpayers can use GSTR-2B as a reference to ensure accurate and timely filing of their returns.
3. Can I make corrections in GSTR-2A or GSTR-2B?
No, GSTR-2A and GSTR-2B are read-only documents. Any corrections to be made should be done in the original returns filed by the supplier or the taxpayer.
4. Can I use GSTR-2A for claiming Input Tax Credit (ITC)?
Yes, GSTR-2A is a crucial document for claiming ITC. It reflects the eligible ITC based on the information furnished by your suppliers. However, it is advisable to reconcile GSTR-2A with purchase records to ensure accuracy.
5. Is GSTR-2B considered as a legal document for ITC reconciliation?
While GSTR-2B is a helpful tool for ITC reconciliation, it is not a legal document. The actual claim for ITC should be based on your books of accounts and the invoices received.
