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  7. What is GSTR-2B & How to Check It?

What is GSTR-2B & How to Check It?

Updated on: 11 Sep, 2024 05:08 PM

GSTR-2B is a form issued by the Goods and Services Tax Network and contains details of inward supplies of goods and services received from registered suppliers. This form helps businesses reconcile their purchase ledger with vendor invoices. GSTR-2B facilitates the tracking of GST liability. Comparing it with purchase details and inputting tax credits. This article sheds light on GSTR-2B in detail, its meaning, purpose, benefits, features, and how to download etc.

Contents

What is GSTR-2B?

GSTR-2B is an auto-generated input tax credit statement. This statement has been recently introduced on the GST portal. It is generated every month and simplifies claiming input tax credits for taxpayers. This statement is provided to all taxpayers and is auto-populated on the basis of the data retrieved from GSTR-1, GSTR-5, and GSTR-6 submitted by the suppliers. Since this is a statement of input tax credit, it is not required to be filed by the taxpayer, and thus, it does not have a last date.

What is the Purpose of GSTR-2B?

GSTR-2B helps the companies reconcile their purchase ledger with vendors. It helps identify the mismatch between details provided by the registered vendors and the details in the company’s returns. This form plays a crucial role for businesses to ensure GST compliance and the accuracy of GST returns. In addition to this, it also tracks GST liability and input tax credits and compares the total value of inward supplies with purchase details.

What are the Benefits of GSTR-2B?

GSTR-2B has several benefits. Some of them are given below -

  • Less manual effort is needed to reconcile vendor invoices with the purchase ledger.
  • Tracking of Input Tax Credits and GST liabilities.
  • More efficiency in managing GST compliance activities.
  • Auto-populates details from GSTR-1 in the GSTR-2B form.
  • Less paperwork and risk of errors because there is no manual data entry.

What are the Features of GSTR-2B?

GSTR-2B provides various features. Given below are some of the key features of GSTR-2B -

  • Invoice Details - GSTR-2B consists of all the invoice details of the inward supplies received from vendors, such as GSTINs, tax rates, invoice numbers, total value, etc. These details help the companies reconcile vendor invoices with purchase ledgers.
  • Tax Liability Tracking - This helps track the GST liability incurred on inward supplies received from the vendors by providing an overview of all taxable purchases.
  • Input Tax Credit (ITC) - If the company has claimed any input tax credit, it is reflected in GSTR-2B. This return helps businesses manage their input tax credits and ensure accuracy on GST payments.
  • Difference Between Purchase Details and Invoice Details - This helps identify and rectify any discrepancies between vendor invoices and the company’s returns.
  • Convenience - GSTR-2B facilitates the management of compliance activities and makes it easy. Since this is an auto-generated document, it saves time and ensures accuracy.
  • ITC Segregation - GSTR-2B can also be used to segregate ITC claims based on the nature of purchases.
  • Remains Unchanged - GSTR-2B remains unchanged even if the vendors make amendments to their returns, thus making it easier to identify discrepancies between vendor invoices and company returns.

How to File GSTR-2B?

Follow the below-mentioned steps to file GSTR-2B -

  • Step 1. Log in to the GST portal and access the page for GSTR-2B.
  • Step 2. View/download a copy of Form GSTR-2B.
  • Step 3. Enter the details of all inward supplies.
  • Step 4. Cross-check the discrepancy between vendor invoices and the company’s returns.
  • Step 5. Check ITC availed, GST liability, and other details to ensure accuracy on GST payments and reconciliation.
  • Step 6. Click on the ‘File’ option on the portal to file GSTR-2B. Once the fling is complete, a confirmation message is displayed on the screen.

How is GSTR-2B Generated?

Given below are the steps of how GSTR-2B generated -

  • The vendor files a copy of GSTR-1 consisting of the details of outward supplies.
  • The information provided in GSTR-1 is auto-populated in GSTR-2B
  • Once GSTR-3B filing is complete, the GST liability and ITC are auto-populated in GSTR-2B.
  • GSTR-2B is generated and is available to the recipient in the GST portal.
  • The discrepancies identified between a company’s returns and a supplier’s invoice must be reconciled in GSTR-2B before filing a return.
  • Once the reconciliation is complete, you can click on the ‘File’ option and complete filing GSTR-2B.

How to View and Download GSTR-2B?

You can view and download GSTR-2B from the GST portal. Here are the steps that you need to follow -

  • Enter your valid login credentials and log in to the GST portal.
  • Navigate to the section called ‘Downloads’ section and click on ‘Returns Dashboard’.
  • Now click on ‘View/Download’ GSTR-2B.
  • Select the relevant financial year and month for which you want to view or download GSTR-2B.
  • Click the download button to get the document in .pdf format.

What is the Difference Between GSTR-2B and GSTR-2A?

Here are the points of difference between GSTR-2B and GSTR-2A -

GSTR 2B GSTR 2A
Auto-generated containing details of outward supplies. Filed manually by the vendor and contains details of inward supplies from all the GST-registered vendors.
Companies can segregate ITCs according to the nature of purchase. Input tax credits can't be segregated as per purchase nature
Helps track GST liabilities and ITC on GSTR-2B return. Cannot track GST liabilities and input tax credits.
GSTR 2B remains unchanged even when vendors change their returns. GSTR 2A reflects all the changes made in their returns

GSTR-2B is an essential document that plays a crucial role in GST return filing. It not only helps maintain accounting records but also helps reconcile the purchase data and vendor invoices. Understanding the filing process for GSTR-2B can help you stay compliant with GST law and avoid penalties. And if you find managing your taxes complicated, don’t worry! Our tax experts are just a click away and can help you with GST registration and GST return filing. Book online CA now!

Frequently Asked Questions

Q- What is GSTR 2B?

GSTR-2B is an auto-generated statement for regular taxpayers, created from the information submitted by their suppliers in GSTR-1/IFF, GSTR-5 (for non-resident taxable persons), and GSTR-6 (for input service distributors).

Q- Do I as a taxpayer have to file Form GSTR-2B?

You do not need to file Form GSTR-2B. It is a read-only, auto-generated ITC statement that shows the available Input Tax Credit for you based on the documents filed by your suppliers and ITC received through the Input Service Distributor (ISD).

Q- When will Form GSTR-2B be generated?

Form GSTR-2B is generated monthly on the 14th day of the following month. For instance, the GSTR-2B for July 2020 would be available to the registered person on 14th August 2020.

This form includes all documents filed by suppliers or the Input Service Distributor (ISD) in their GSTR-1, GSTR-5, and GSTR-6 forms within the cut-off dates. It also contains import data received by the 13th of the following month.

For monthly GSTR-1, the cut-off period is from 00:00 on the 12th of the month to 23:59 on the 11th of the next month. For quarterly GSTR-1/IFF, GSTR-5, and GSTR-6, the cut-off period is from 00:00 on the 14th to 23:59 on the 13th of the following month.

Q- By when details filed in Form GSTR-1 and Form GSTR-6 would reflect in Form GSTR-2B?

The details filed in Form GSTR-1 and GSTR-5 (by suppliers) and Form GSTR-6 (by ISD) will appear in the recipient’s next available Form GSTR-2B, regardless of the filing date. For example, if a supplier files a document (INV-1 dated 15th July 2020) on 11th August, it will show up in the July GSTR-2B (generated on 12th August). However, if the document is filed on 12th August 2020, it will appear in the August GSTR-2B (generated on 12th September).

Q- Can I as a taxpayer make changes to or add document in my Form GSTR-2B, in case there are any errors or omission in the details uploaded by my supplier taxpayers?

No, you cannot modify or add any documents to Form GSTR-2B, as it is a read-only, static ITC statement.

Q- Which taxpayers can view Form GSTR-2B?

Form GSTR-2B is available only for the following types of taxpayers:

  • Normal taxpayers
  • SEZ taxpayers
  • Casual taxpayers

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CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.