GST Return is a document that contains details of income/sales and/or expenses which has to be...
The 39th GST Council meeting held on 14th March 2020 recommended significant improvement to simplify the GST return filing to make it easy for the taxpayers to have GST compliance. One such improvement was the introduction of GSTR-2B from which is an auto-drafted ITC statement.
This article talks about Form GSTR- 2B, its importance, features, etc.
GSTR-2B is a form that is an auto-drafted ITC (Input Tax Credit) statement generated every month for every recipient. It is a fixed statement generated on the 12th day of every month according to the information provided in the forms GSTR-1, GSTR-5 & GSTR-6 by their suppliers.
For example, November 2020 GSTR- 2B will generate on 12th December 2020 and contain all the details of ITC on the transactions done in November.
This document shows a detailed summary & invoice-wise statement of the eligibility & ineligibility of ITC.
GSTR-2B was introduced to simplify the GST compliance for taxpayers. It also helps in computing ITC more accurately.
The council states that the GSTR-2B will help save the time taken to file returns, minimize errors, ease reconciliation & simplify compliance.
The GSTR-2B contains several details that assist the taxpayer to reconcile ITC easily with their books of accounts and records.
The benefits of GSTR-2B are:
The contents of GSTR-2B is as follows:
The features of GSTR-2B are as follows:
The following are the steps to access GSTR-2B:
The returns will be filed in Form GSTR 3B, but the auto-drafted GSTR-2B statement can be used as a source for calculating ITC claims. The static nature of the return is the key to simplifying the process.
The documents filed under the return contain additional information to specify whether ITC is available or not. It is crucial to determine whether ITC is available or not to determine the further process.
The GSTR-2B return includes the invoices for which the returns have been filed. Further, it contains information, like the date of filing and the filing period.
In addition to this, it helps to avoid a dual claim of ITC during reconciliation.
Comparison between GSTR 2A & GSTR-2B:
|Nature of statement||It is dynamic in nature. Based on documents uploaded, it can change.||It is static in nature. The statement is generated every month, and the details cannot be changed after the actions of suppliers or recipients.|
|Availability||Monthly||On the 12th day of every month|
|Source of Information||GSTR – 1GSTR – 5GSTR – 6GSTR – 7GSTR – 8ICES||GSTR – 1GSTR – 5GSTR – 6ICES It does not provide TCS or TDS deduction information.|
|Utility||It is challenging to ensure that all the GSTR 2A credits have been included because of the vendors’ delay in the filing process.||It helps during ITC reconciliation and to identify compliant and non-compliant vendors.|
|ITC on imports||It contains all the details of ITC on inward supplies from SEZs, and the imports from overseas are available from ICES in the GST system.||It contains all the information on imports from ICES.|
GSTR-2B was introduced in the 39th Council meeting to ease filing returns and computing ITC. It is an auto-drafted statement generated on the 12th day of every month, which helps computing ITC (Input Tax credit).
This form has made it easy for the taxpayers in GST compliance in minimizing the errors, and it saves time to prepare for return filing.
Read our article: Govt. Allows Taxpayers to File GSTR-3B Returns in a Staggered Manner