GSTR-2: Detailed Guide to Filing GSTR-2

Ashish M. Shaji

23 Oct, 2020

As per GST laws, everyone who has completed their GST Registration is required to make sure that all the mandatory compliance is done with. One of the most important compliance is filing GST Returns.  They are required to file details of inward supply of goods or services by 15th of the following month in GSTR-2 and claim the input tax credit for the tax period.

What is Inward Supply for a GSTR-2?

In the previous article, we have learned about the GSTR-1 return as outward supplies. In this article, we will learn about GSTR-2. As per GST law, in order to claim an input tax credit on inward supply, it is mandatory to file GSTR-2 by the 15^th day of the following month.

In a GSTR-2 return, most of the headings are auto-populated from the supplier’s GST return (GSTR-1).

GSTR-2- Step by Step Expert Advisory

There are numerous headings in GSTR2 format prescribed by government. We have provided that below.

• GSTIN – Each taxpayer will have a 15 digit GST number based on the PAN number of the taxpayer.

Upon login from the dashboard, you need to select GSTR-2 and GSTIN will be auto-populated.

• Name of the Taxpayer – Name of the taxpayer will also be auto-populated at the time of logging into the common GST Portal.
• Tax Period, Month, FY – From the drop-down menu, you need to select a tax period for which the return has to be filed.
• Details of Inward Supplies from a Registered Person – In GSTR-2 there is a feature of online matching for information. While preparing returns, details of inward supplies will be auto-populated. If any purchase invoice has not been filled by the supplier in GSTR-1, then the registered taxable person who is filing returns can add all such invoice numbers and request the GST department for provisional credit.
• Non-filing of GSTR-1 returns by the Supplier – Even upon non-filing of GSTR-1 by the supplier, if a purchaser has sufficient evidence for the purchase made from a registered taxable supplier, he can apply for an input tax credit with details of inward supply received from a supplier’s GSTIN. In such a case, a taxable person who is filing GSTR-2 will get provisional credit against his claim from a supplier. A supplier will be notified of concerns by the Department for Rectification of Issues and ensure the payment of taxes along with interest.
• Supplier filed GSTR-1, however, a transaction has not been shown in the return- The buyers can manually include the detail of inward supply received and the department will send a notification to the supplier to accept this addition or modification in his GSTR-1A return. If a supply of goods and services has been received in installment, then a deficiency should be reported in the return period in which goods or services finally delivered to the recipient.
• How to amend detail of supply received in earlier tax period other than the current tax period? – At any time, when a recipient of goods or services came to know about the difference in the earlier tax period, he or she can file this information manually in GSTR-2. Subsequently, the supplier will also get a notification regarding this modification. The supplier has to accept this change in GSTR-1A return if the claim of a purchaser is correct.
• Import of Capital Goods under GST– Inward supply by the import of capital goods in the previous month should be treated as IGST purchase. This has to be reported in a GST Return under the head of the interstate supply of goods. While declaring the import purchase, there should be a bill of entry with purchase. IGST liability should be determined based on the declaration made in the monthly returns.
• Amendments in the import of Capital Goods under GST of Earlier Tax Periods – Under the amendment, the input purchase of capital goods can be done and also affect the amendment in return, the taxable person has to furnish necessary changes in the bill of entry.
• Import of services under GST – On any import of services, a non-taxable foreign person shall be taxed in India under the reverse charge mechanism of a collection of GST. The tax has to be paid on the import of services as similar to old Service Tax law.
• Amendments in Services Received from under Import of Services from a non-resident supplier– Any amendment in invoice against the supply of services by the non-resident should be entered in the return. In case a taxable person is required to furnished the details of all such changes in the invoice. Any reduction in the value of the supply of services will result in a refund of GST paid earlier.
• Details of Debit and Credit Notes for the current tax period– A registered taxable person is required to report all debit and credit notes raised with respect to the inward supply of goods or services. If a debit or credit note has been generated by the reverse charge mechanism, it will get auto-populated from GSTR-1 and GSTR-5.
• Amendment to Details of Credit or Debit Notes of earlier tax periods –Any amendment in a debit or credit note of the previous tax period, other than the current tax period, has to be disclosed under this head.
• Detail of inward Supplies Received from Unregistered Persons – All types of supply received from the unregistered taxpayer or from a person registered under the composition scheme should be disclosed on a monthly return. A tax has to be paid under the reverse charge mechanism.
• ISD Credit Received – The input credit from an ISD provider should be auto-populated in this heading in GSTR-2. ISD input is simply a distribution of the input tax credit by the HO to its branch in other states.
• TDS Credit Received – TDS is applicable for a taxpayer engaged in the business activity of a work contract or job. In such a case, the receiver of goods or services will deduct a specified % of the transaction value as TDS, and the deductor will have to file GSTR-7 with detail of TDS dedicated in a tax period.
• TCS Credit Received – TCS under GST is only applicable to a merchant registered with an e-commerce aggregator or an e-commerce marketplace player. In the GST compliance mechanism, every e-commerce operator is required to deduct TCS at a prescribed % by the GST Council at the time of making a payment to such merchants. The TCS deducted by e-commerce companies will be an input tax credit for the merchant. The detail of TCS under GST will be auto-populated from GSTR-8 of the e-commerce operator.
• ITC Received on an Invoice on Which Partial-Credit Availed Earlier – At the time of filing the details of input supply under GSTR-2 Return, the earlier unclaimed input partially or fully, which is due to the reason of non-filing of GST return by the supplier, will fall under this head. Earlier availed input will also auto-populated upon the selection of invoice numbers.
• GST Liability under the Reverse Charge: Under the reverse charge, the GST collection mechanism and the liability of payment GST arise on an account of the time of supply of goods or services without receipt of the invoice. GST paid under reverse charge mechanism on the inward supply of goods or services shall be available for the input tax credit.
• Amendment in Tax Liability under Reverse Charge: This arises on the account of time and the place of supply without receipt of the invoice.
• Tax Already Paid – If GST is paid earlier under the reverse charge mechanism without an invoice and the later invoice is raised by the supplier, then tax has to be paid for a different amount.
• ITC Reversal – All types of ITC Reversal, due to many reasons, has to be disclosed separately. ITC reversal on exempted supply should also be disclosed separately in GSTR-2.
• Amendments to ITC Reversal – A registered person under GST Compliance^[1] can manually amend any particulars with respect to the Input Tax Credit.
• GSTR-2 Return –  GSTR-2 Return has to be filled by the 15^th day of the following month by the regular taxpayer only.

Note: As per the decision taken in 23rd GST Council Meeting, currently filing of GSTR-2 is suspended until any further notice from the department.

Conclusion

In order to know more about various forms of GST Returns, deadlines and filling, consider reading our articles on GST returns or free feel to contact Enterslice.

Read our article: CBDT Clarifies Issues Related to Challenges Regarding Implementation of Provisions of GST Laws Faced by Registered Persons