GSTR-2B use and Advisory: GST Portal Changes: GST Return Changes


GSTR-2B use and Advisory: GST Portal Changes: GST Return Changes

1. Terms Used:

i. ITC – Input tax credit
ii. B2B – Business to Business
iii. ISD – Input service distributor
iv. IMPG – Import of goods
v. IMPGSEZ – Import of goods or inward supply of goods from Special Economic Zones

2. GSTR-2B is an auto-drafted ITC statement

This will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR-1, 5 (non-resident taxable person) and 6 (input service distributor). The statement will indicate availability of input tax credit to the registered person against each document filed by his suppliers.

3. GSTR-2B is a static statement and will be made available for each month on the 12th day of the succeeding month. For example, for the month of July 2020, the statement will be generated and made available to the registered person on 12th August 2020.

4. GSTR-2B for a month (M) will contain the details of all the document filed by his suppliers in their respective GSTR-1, 5 and 6 between the due date of furnishing of GSTR-1 for previous month (M-1) to the due date of furnishing of GSTR-1 for the current month (M). For example, GSTR-2B generated for the month of July, 2020 will contain the details of all the documents filed by suppliers in their GSTR-1, 5 and 6 from 00:00 hours on 12th July, 2020 to 23:59 hours on 11th August 2020.

5. There may be instances where the date of filing of GSTR-5 (Non-Resident taxable person) and GSTR-6 (Input Service Distributor) may be later than the date of generation of GSTR-2B. Under such circumstances, taxpayers are advised to avail input tax credit on self-assessment basis. However, when such document gets filed and reflected in their next GSTR-2B, taxpayers shall not avail such input tax credit.

6. GSTR-2B also contains information on import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / Developers. This will be made available from GSTR-2B of August 2020 (generated on 12th September 2020).

7. It may be noted that reverse charge credit on import of services is not a part of this statement and will be continued to be entered by taxpayers in Table 4(A)(2) of FORM GSTR-3B.

8. The documents furnished by the supplier in any GSTR-1,5 and 6 would reflect in the next open GSTR-2B of the recipient irrespective of the date of issuance of the concerned document. For example, if a supplier furnishes a document INV-1 dt. 15.05.2020 in the FORM GSTR-1 for the month of July, 2020 filed on 11th August 2020, the details of INV-1, dt. 15.05.2020 will get reflected in GSTR-2B of July 2020 (generated on 12th August 2020) and not in the GSTR-2B of May, 2020.

9. Table 3: ITC Available Summary captures the summary of ITC available as on the date of generation of FORM GSTR-2B. It is divided into following parts:

A. Part A captures the summary of credit that may be availed in relevant tables of FORM GSTR- 3B.

B. Part B captures the summary of credit that shall be reversed in relevant table of FORM GSTR- 3B.

10. Table 4: ITC not available summary captures the summary of ITC not available as on the date of generation of FORM GSTR-2B, under the specific scenarios detailed at Sr. No. 11 below. Credit reflected in this table shall not be entered in Table 4(A) of FORM GSTR-3B.

11. Credit shown as “ITC Not available” in Table 4, Part A covers the following scenarios only: –

i. Invoice or debit note for supply of goods or services or both where the recipient is not entitled to input tax credit as per the provisions of sub-section (4) of Section 16 of CGST Act, 2017.

ii. Invoice or debit note where the Supplier (GSTIN) and place of supply are in the same State while recipient is in another State.

However, there may be other scenarios for which input tax credit may not be available to the taxpayers and the same has not been generated by the system. Taxpayers, are advised to self-assess and reverse such credit in their FORM GSTR-3B.

12. Taxpayers are advised to ensure that the data generated in GSTR-2B is reconciled with their own records and books of accounts. Tax payers shall ensure that

i. No credit shall be availed twice for any document under any circumstances.

ii. Credit shall be reversed as per GST Act and Rules in their FORM GSTR-3B.

iii. Tax on reverse charge basis shall be paid.

13. Details of all the documents in GSTR-2B is made available online as well as through download facility.

14. There may be scenarios where a percentage of the applicable rate of tax rate may be notified by the Government. A separate column will be provided for invoices / documents where such rate is applicable.

15. Section wise instructions of FORM GSTR-2B Summary:

Heading Instructions

Table 3

ITC Available Part A Section I

All other ITC – Supplies from registered persons other than reverse charge

i. This section consists of the details of supplies (other than those on which tax is to be paid on reverse charge basis), which have been declared and filed by your suppliers in their FORM GSTR-1 and 5.

ii. Negative credit, if any, may arise due to amendment in B2B– Invoices and B2B – Debit notes. Such credit shall be reversed in Table 4(B)(2) of FORM GSTR-3B.

Table 3

ITC Available Part A Section II

Inward Supplies from ISD

i. This section consists of the details of supplies, which have been declared and filed by an input service distributor in their FORM GSTR- 6.

ii. Negative credit, if any, may arise due to amendment in ISD Amendments – Invoices. Such credit shall be reversed in table 4(B)(2) of FORM GSTR-3B.

Table 3

ITC Available Part A Section III

Inward Supplies liable for reverse charge

i. This section consists of the details of supplies on which tax is to be paid on reverse charge basis, which have been declared and filed by your suppliers in their FORM GSTR-1.

ii. These supplies shall be declared in Table 3.1(d) of FORM GSTR-3B for payment of tax. Credit may be availed under Table 4(A)(3) of FORM GSTR-3B on payment of tax.

Table 3

ITC Available Part A Section IV Import of Goods

i. This section provides the details of IGST paid on import of goods from overseas and inward supply of goods from SEZ units / developers on bill of entry and amendment thereof. These details are updated on near real time basis from the ICEGATE system.

ii. This table contains the data of imports made by you (GSTIN) in the month for which GSTR-2B is being generated for.

iii. The ICEGATE reference date is the date from which the recipient is eligible to take input tax credit.

iv. The table also provides if the Bill of entry was amended.

v. Information is provided in the tables based on data received from ICEGATE. Information on certain imports such as courier imports may not be available.

vi. This data will be made available from GSTR-2B of August 2020 onwards (i.e. 12th September 2020).

Table 3

ITC Available Part B Section I Others

i. This section consists of the details of credit notes received and amendment thereof which have been declared and filed by your suppliers in their FORM GSTR-1,5 and 6.

ii. Such credit shall be reversed under Table 4(B)(2) of FORM GSTR-3B. If this value is negative, then credit may be reclaimed subject to reversal of the same on an earlier instance.

Table 4

ITC Not Available Part A Section I

All other ITC – Supplies from registered persons other than reverse charge

i. This section consists of the details of supplies (other than those on which tax is to be paid on reverse charge basis), which have been declared and filed by your suppliers in their FORM GSTR-1 and 5 but satisfy either of the two conditions mentioned at Sr. No. 11 above.

ii. This is for information only and such credit shall not be taken in FORM GSTR-3B.

Table 4

ITC Not Available Part A Section II

Inward Supplies from ISD

i. This section consists of the detail of supplies, which have been declared and filed by an input service distributor in their FORM GSTR-6 but satisfy either of the two conditions mentioned at Sr. No. 11 above.

ii. This is for information only and such credit shall not be taken in FORM GSTR-3B.

Table 4

ITC Not Available Part A Section III

i. This section consists of the details of supplies liable for reverse charge, which have been declared and filed by your suppliers in their FORM GSTR-1 but satisfy either of the two conditions mentioned at Sr. No. 11 above.
Inward Supplies liable for reverse charge ii. These supplies shall be declared in Table 3.1(d) of FORM GSTR-3B for payment of tax. However, credit shall not be taken in FORM GSTR-3B.

Table 4

ITC Not Available Part B Section I Others

i. This section consists details the credit notes received and amendment thereof which have been declared and filed by your suppliers in their FORM GSTR-1,5 and 6 but satisfy either of the two conditions mentioned at Sr. No. 11 above.

ii. Such credit shall be reversed under Table 4(B)(2) of FORM GSTR-3B.

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