Ankita Khetan | Sep 7, 2017 |
How to file GSTR -2 | GST 2 Return Filing Offline
Once GSTR -1 for outward supplies of goods or services is successfully filed, the journey of free flow of tax credit begins. In Form GSTR -1 information relating to outward supplies is uploaded transaction wise/invoice-wise.One person’s(Seller) outward supply becomes other person’s(purchaser) inward supply.
What is Form GSTR -2
The 2nd return is the return for purchases/receipts/of recipients under the GST regime needs to be filed i.e Form GSTR -2 for inward supplies of goods or services received during a month.Since the details of the suppliers data are already available, most of the details in the Form GSTR-2 will auto-populate from GSTR-1 filed by the suppliers.The dealers will have to verify the transactions of the counterparty which reflect in their return they have the option to eitheraccept it or reject it. They also have the option to amend, add or delete any of the incorrect transactions. The transactions have to be approved by both supplier and recipient and when all transactions are approved, then electronic cash ledger will be generated, and the amount payable or available as credit is displayed.
Is GSTR-2 to be filed by every register taxpayer
Yes, Every registered person is required to file Form GSTR-2 irrespective of whether there are any transactions of inward supplies during the month or not.( If there are no inward supplies nil GSTR -2 needs to be filed).
However, Certain registered taxpayers under the GST regime will not be required to file GSTR -2 as they were not liable to file GSTR -1 as well
What is the due date of filing GSTR -2
Generally GSTR -2 needs to be filed within 5 days from the due date of filing GSTR -1. (Note: Extension in due date for GSTR -2 is provided for the months of July, August,2017vide Notification no. 29/2017 dated 5th September,2017). If this return is not filed or filed late it would attract the penal provisions under the GST Act.
| Month | Due date (Updatedon 5th Sep,2017 after notification no. 29/2017 ) |
| July, 2017 | 25th September,2017 |
| August, 2017 | 10th October,2017 |
| September, 2017 | 15th October,2017 |
| October, 2017 | 15th November,2017 |
Is there any penalty or fine if GSTR -2 is not filed
Yes, Non filing of GST returns will lead to fines and penalty. And it is important to note that if you don’t file GSTR -2 you will not be allowed to file the next & the last return for the taxable month which is GSTR -3.
Is there any penalty if the return (GSTR -2 )is filed after the due date
Yes, If the return is not filed within the due dates then you will be liable to pay interest as well as late fees.
Interest @ 18% per annum onoutstanding amount of tax to be paid.
Late fees @ Rs. 100/- per day (maximum Rs. 5000/-)
In the below table, you only need to fill in details relating to year and month i.e. taxable month (Return is for which month and year) remaining details will auto populate once you login with correct credentials on the GST portal.
1. GSTIN -GSTIN of the taxpayer will auto-populate at the time of return filing
2. Legal name of the registered person – Name of the registered taxpayer including legal and trade name will also auto-populate at the time of return filing.
3. Inward supplies received from a registered person other than the supplies attracting reverse charge – Most of the information in the table no. 3 will also auto populate from the GSTR-1 filed by the seller. It will show details like GSTIN of supplier, Invoice details – Invoice no., date & value , applicable rate, taxable value, amount of applicable tax -IGST, CGST, State/UTGST, Cess, place of supply, whether ITC is eligible, amount of ITC -IGST, CGST, State/UTGST, Cess. It is possible that certain inward supplies made from registered persons which are their in your record might have not auto populated in your Form GSTR -2. The reason for the same may be
Seller has failed to file GSTR-1 within the due date
Seller has not filed GSTR-1 at all
Seller has filed GSTR-1 but has missed to record a transaction
In such cases, the buyer has to manually add these transactions. The seller will get a notification to accept this addition/modification in his GSTR-1A return.
Note : It should be noted that purchases which are covered under reverse charge will not come in table no. 3 and that information will not auto populate.
Note : If the supply has been received in more than one lots, then the receipt of last lot is of utmost importance as this would decide in which month the invoice will be recorded books of account and in which month it will be reported in the GST return.
4. Inward supplies on which tax is to be paid on reversecharge
None of the information will auto populate in table no. 4. In the below mentioned table information relating to inward supplies on certain goods and services which attract reverse charge will come. Reverse charge is one of the most important concept of GST. In simple words, details relating to purchases made/ services received where the liability to pay tax is of the buyer/service recipient will be recorded here.
Details like GSTIN of supplier, Invoice details – Invoice no., date & value , applicable rate, taxable value, amount of applicable tax -IGST, CGST, State/UTGST, Cess, place of supply, whether ITC is eligible, amount of ITC -IGST, CGST, State/UTGST, Cess for the following purchases on whichreverse charge applies, will be reported.
4A. Inward supplies receivedfrom a registered supplier (attracting reverse charge) –In this part, details ofall purchases on which specifically reverse charge is applicable by law must be mentioned. For example, GTA services
4B. Inward supplies receivedfrom unregistered supplier – In this part, details relating to purchases from unregistered supplier l if it exceeds Rs. 5,000 per day will be recorded here.
4C. Import of Service – In this part, details relating to import of services for which GST is paid on reverse charge basis will be covered.
5.Inputs/Capital goods received from Overseas or from SEZ units ona Bill of Entry
In this table no. 5, information relating to any kind of import of inputs (items used to manufacture finished goods) or capital goods received against a Bill of Entry must be reported. Even the goods which are received from SEZ are reported here.
Details like GSTIN of supplier, Invoice details – Invoice no., date & value , applicable rate, taxable value, amount of applicable tax -IGST, CGST, State/UTGST, Cess, place of supply, whether ITC is eligible, amount of ITC -IGST, CGST, State/UTGST, Cess for the following purchases made from Overseas or SEZ units, will be reported here.
5A.Imports:In this part , Any kind of import of inputs (items used to manufacture finished goods) or capital goods received against a Bill of Entrywill be reported here. Details of bills of entry, along with 6-digit port codes and 7-digit bill numbers must be mentioned.
5B.Received from SEZ: In this part ,Inputs or capital goodsreceived from sellers in a SEZ will be reported here.
6.Amendments to details of inward supplies furnished in returns for earlier tax periods in Table 3,4 and 5 [including debit notes/credit notes issues and their subsequent amendments]
In this table no. 6, information relating to revision in returns filed for earlier tax periods or anydebit notes/credit notes issued will be recorded here.
As we know that under the GST regime there is no option with the taxpayer to revise any GST return once it is filed. If there is any revision, then you need to do it in the subsequent month’s return.The taxpayer can amend any detail of purchases of goods/services in earlier months. Subsequently, the seller will get a notification regarding this modification done. The seller needs to verfiy and then accept/reject this change in his GSTR-1A return.
Details like Original Invoice details- GSTIN, Invoice no., Date, for Revised Invoice details -GSTIN, Invoice no., Date, Invoice no., value , applicable rate, taxable value, amount of applicable tax -IGST, CGST, State/UTGST, Cess, place of supply, whether ITC is eligible, amount of ITC -IGST, CGST, State/UTGST, Cess for the following revisions and amendments will be reported here.
6A. Supplies other than import of goods or goods received from SEZ [Information furnished in Table 3 and 4 of earlier returns]-Ifdetails furnished earlier were incorrect –In this part, all the above details relating to all revisions ofinput goods/services (except imports)
6B. Supplies by way of import of goods or goods received from SEZ [Information furnished in Table 5 of earlier returns]-If detailsfurnished earlier were incorrect –In this part,all the above details relating toAny change in amount/tax calculated on imported goods and goods from SEZ can be made under this heading. Here, the taxpayer must mention the changes made in the bill of Entry / Import Report.
6C. Debit Notes/Credit Notes [original] –In this part,all the above details relating to alldebit and credit notesissued with respect to purchases. Any debit/credit note issued under reverse charge mechanism will get auto-populated here from counter-partyGSTR-1and other applicable returns.
6D. Debit Notes/ Credit Notes [amendment of debit notes/credit notes furnished in earlier tax periods] –In this part,all the above details relating to any changes in debit /credit note of previous months will be reported.
7. Supplies received from Composition Taxable person and other exempt/Nil rated/ other Non GST supplies received
In this table no. 7, information relating topurchases (total value) made from composite taxable person, exempt supplies(Eg. live animals) / nil rated supplies (Eg. live trees & plants) and Non- GST supply(Eg. petrol/diesel)will be recorded here.
7A.Inter State Suppliers
7B.Intra State Suppliers
8. ISD credit received
In this table no.8, information relating to ITC received from ISD will auto-populate fromGSTR-6 filed by the Input Service Distributor (ISD).
Details like GSTIN of ISD, ISD document details – Number, date, Amount of ISD Credit recived -IGST, CGST, State/UTGST, Cess, Amount of eligible ITC -IGST, CGST, State/UTGST, Cess for the following transactions with ISD will be reported here.
8A. ISD Invoices – In this part, information relating toITC received from ISD invoices.
8B. ISD Credit Note – In this part, information relating toITC received from ISD credit note.
9. TDS and TCS credit received
In this table no. 9 , information relating to GSTIN of Deductor/E commerce operator, gross value, sales returns, net value, Amount of tax – IGST, CGST, SGST/UTGST for the following :
9A. TDS – In this part, information of TDS credit received will auto-populate fromGSTR-7filed by the deductor.This part of the form will be applicable only if you are engaged in specified contracts with specified persons (usually government bodies).The receiver (Govt.) will deduct a certain percentage of transaction value as TDS.
9B. TCS –In this part, information of TCS credit received will auto-populate fromGSTR-8 filed by an E-commerce operator. This part of the form will be applicable only if you are registered as any online seller with anywith E-commerce operator. E-commerce operator is required to collect tax at source at the time of making payment to such sellers.
10. Consolidated Statementof Advance paid/Advance adjusted on account of receipt of supply
In the table no. 10, information relating to any advance payment made on account of receipt of supplyduring the month will be reported here.Even the details of tax paid on goods or services received during an earlier tax period, but he invoices for the same have been received during this month will be declared here.Even the details of advance receipts issued under reverse charge are also covered here.Generally the seller issues an advance receipt when he receives any advance payment. In case of purchases attracting reverse charge, the buyer must issue the advance receipt if he pays in advance.
Details like applicable rate, gross advance paid, Place of supply(Name of State), amount of tax -IGST, CGST, State/UTGST, Cess for the following needs to be mentioned here –
(I) Information for the current month
10A. Advance amount paid for reverse charge supplies in the tax period (tax amount to be added to output tax liability)
10A (1). Intra-State supplies (Rate Wise)
10A (2). Inter -State Supplies (Rate Wise)
10B. Advance amount on which tax was paid in earlier period but invoice has been received in the current period [reflected in Table 4 above]
10B (1). Intra-State Supplies (Rate Wise)
10B (2). Intra-State Supplies (Rate Wise)
(II) Amendments of information furnished in Tableno. 10(1) in earlier month
In the part II of table no. 10, if any such changes ( in relation to above part I) needs to be made for earlier periods that will be recorded here.
11. Input tax credit Reversal/ Reclaim
Under this table no. 11, information relating to reversal of ITC or reclaim of ITC will be recorded. First & foremost rule to claim ITC is that goods and services should be used in furtherance of business. In case if they are used for personal use (non-business), then ITC can’t be claimed. ITC can’t be claimed if it is used for furtherance of business but for exempt supplies.
In this heading, the taxpayer must to fill in details of ITC that cannot be claimed during the month due to various ITC rules.
11A. Information for the current tax period- In this part,all input tax reversal for the current month. It will also include ITC reversal on account of exempt and personal supplies.
(a) Amount in terms of rule 2(2) of ITC Rules – As per rule 37(2)ITC will be reversed for invoices which were not paid within 180 days of issue.
(b) Amount in terms of rule 4(1)(j)(ii) of ITCRules –As perrule 39(1)(j)(ii), If a credit note was issued by the seller to the HO then the ITC subsequently reduced will be reversed. It is relevant for ISDs.
(c) Amount in terms of rule 7 (1) (m) of ITCRules-As perrule42(1)(m), whereinputs are used for both business and personal purpose.ITC used in theportion of input goods/services used for personal purpose must bereversed proportionately.
(d) Amount in terms of rule 8(1) (h) of the ITCRules –As perrule43(1)(h),wherecapital goods are used for both business and personal purpose.ITC used in theportion of capital goods used for personal purpose must bereversed proportionately.
(e) Amount in terms of rule 7 (2)(a) of ITCRules –As perrule42 (2)(a), If total ITC on inputs of exempted/non-business purpose is more than the ITC actually reversed during the year then the amount of difference will be added to output liability. Interest will be applicable.this is calculated after the annual return is furnished.
(f) Amount in terms of rule 7(2)(b) of ITC Rules –As perrule42(2)(b),If total ITC on inputs of exempted/non-business purpose is less than the ITC actually reversed during the year then the difference amount can be reclaimed as ITC.This is is the opposite of the above.
(g) On account of amount paid subsequent toreversal of ITC –
(h) Any other liability (Specify)
11B. Amendment of information furnished in Table No 11 at S. No A in an earlier return
In the part B of table no. 11, if any such changes ( in relation to above part A) needs to be made for earlier periods that will be recorded here.
12. Addition and reduction of amount in output tax for mismatch and other reasons
In the below table no. 12 information relating to any additional tax liability that can arise due to the corrections made to the GSTR-3 of the previous month will be reflected here.
a) ITC claimed on mismatched/duplication of invoices/debit notes:In this part, if there is any mismatch of invoices or there may be duplication of invoices which would result it claiming of excess ITC. Theexcess ITC claimed from duplicate purchase invoices will be reversed and added to the tax liability.
b) Tax liability on mismatched credit notes:In this part, information relating to incorrect credit notes issued by the taxpayer will also result in incorrect ITC. Extra ITC claimed due to mismatch will now be added to your tax liability.
c) Reclaim on account of rectification of mismatched invoices/debit notes: In this part, if there was a mismatch of invoices and due to this mismatch it has led to lower claim of ITC. So you will be entitled to more ITC and so theadditional amount of eligible ITC will be reduced from the output tax liability.
Note : this is exactly the opposite of point 12(a) above.
d) Reclaim on account of rectification of mismatched credit note (Reduce):In this part, information relating to incorrect credit notes issued by the taxpayer will also result in incorrect ITC. Extra ITC claimed due to mismatch will now be reduced from your tax liability.
Note : this is exactly the opposite of point 12(b) above.
e) Negative tax liability from previous tax periods:In this part, information relating to excess tax paid during the previous months (if any) will be recorded which will result in reduction in output tax liability of this month.
f) Tax paid on advance in earlier tax periods and adjusted with tax on supplies made in current tax period(Reduce):In this part, information relating to tax paid along with advance payments in earlier months for supplies received during this month will be recorded.
13 . HSN summary of inward supplies
Under this heading all the inward supplies will be furnished here which need to be categorized based on the HSN codes. This heading will also show the total IGST,CGST, SGST and cess paid on taxable inward supplies based on HSN codes.
Verification( by authorizedsignatory)
At last It needs to be digitally signed in case of a Company or LLP, whereas in the case of a proprietorship concern, the same can be signed physically with a declaration that all information has been supplied and is correct.
Compiled by CA Ankita Khetan. For an queries write to us on [email protected]
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