Introduction to GSTR-2B & GSTR-2B Reconciliation
Many businesses get confused about GSTR-2B means. Let's understand the concept in detail.
The Government has finally initiated the working & usage of Form GSTR-2B in GST which has been inactive & out of use for a while now.
The Government announced the update late in July 2020 that the form will be available for the tax period August 2020 & will be available on the GST Portal for the taxpayers to download from September 12th, 2020.
GSTR-2B Reconciliation against your purchase records has now become essential to claim maximum eligible GST Input Tax Credit.
Since the form is new, you may find less relevant & authentic information, but here is a simplified & insightful blog on GSTR-2B by our GST Experts.
What is GSTR-2B under GST?
Form GSTR-2B is nothing but a highly detailed statement of all eligible & Ineligible GST Input Tax Credit for a taxpayer in a specified taxpayer.
It is auto-populated, based on Forms GSTR-1, GSTR-5, & GSTR-6 of the supplier & GSTR-2A of the recipient.
It may sound like GSTR-2B is similar to GSTR-2A, but one salient feature distinguishes the two forms from each other-
The fact that the details of GSTR-2A can be amended by making changes in GSTR1 Form whereas Form GSTR-2B remains to be constant for a tax period.
Meaning, if you have an available ITC of Rs. 50,000 as per your GSTR-2B in the month of November & your supplier makes changes to his GSTR-1 & your ITC changes to Rs. 65,000, you will still be allowed to claim the ITC of Rs. 50,000 only, as per your GSTR-2B.
The same works for the other way around as well, if your ITC as per GSTR-2B is Rs. 50,000 & upon changes in GSTR-2A it reduces to Rs. 48,000, you will still have to claim the ITC as per GSTR-2B for that tax period & reverse the excess ITC claimed in the next period.
The document shows a detailed, summary & invoice-wise statement of eligibility & ineligibility of ITC.
The form will generate on the 12th of every coming month from the tax period on the GST Portal.
Example- GSTR-2B for October 2020 will generate on November 12th, 2020 & shall contain the details of the Input Tax Credit on transactions done in October.
GSTR-2A or GSTR-2B for ITC Reconciliation?
Up until now, taxpayers had to reconcile their GSTR-2A that has all the purchase details as per the suppliers with their own books of accounts,
However, GSTR-2B will make the work much simpler for accountants & businesses.
Instead of tallying the entire GSTR-2A, you can simply reconcile the ITC statement GSTR-2B form with your purchase books, which will be much easier & less confusing for the accountants.
So although accountants can pick either one of the two auto-generated forms, it would be much more convenient to use GSTR-2B Reconciliation tool, considering that it is a specifically designed, ready draft to calculate, reconcile & claim accurate ITC.
Save up to 10x more time & efforts with this Advanced ITC Reconciliation Software/Tool.
Primary Features of GSTR-2B that you need to know
GSTR-2B remains constant for a given tax period. Any changes in GSTR-1, GSTR-5, or GSTR-6, will make no difference to form GSTR-2B, unlike GSTR-2A. Neither can the recipient make any changes to form GSTR-2B.
GSTR-2B will fetch the import details from ICEGATE System & will also contain details of the inward supply of goods from Special Economic Zone units/developers. The same is not currently available in GSTR-2B but will be available soon.
Options available to view and download the document-level details of the invoices, credit and debit notes, etc.
A summarized ITC Statement will indicate whether the ITC is eligible or not eligible under each section.
Taxpayers can take actions in the particular sections under GSTR3B form as per the advisory given in each section of GSTR-2B
Taxpayers having more than 1000 records can either download the full GSTR-2B or do an advance search of records
View, download, filter, hide & view columns of GSTR-2B allowed.
Cases where ITC remains unavailable in GSTR-2B
There are a few basic conditions when the ITC remains unavailable in the new form GSTR-2B, we have stated a few of them below for your reference-
Watch our exclusive video on GSTR 2A Reconciliation
- 1If the recipient is located in a different state, even if the place of the supplier & the supply is the same, ITC will remain unavailable.
- 2If the supplier has not filed their GSTR-1
- 3If the supplier has not mentioned the transaction details in their GSTR-1
- 4If the supplier has not paid the GST to the government
- 5If the full payment or the goods & services are not received by both or either parties
- 6If the claim is made after the time-limit defined in section 16(4) of the CGST Act (30th September of the next financial year or the date of filing annual returns)
- 7If the ITC is ineligible as per any scenarios mentioned in the Blocked ITC Rule
To learn more on GSTR 2A Reconciliation reports, visit the link provided.
Role of GSTR-2B in ITC & Reconciliation
GSTR-2B may not be at its peak of being used or functioning at the moment, but it is surely a highly useful resource that businesses & accountants can put to their use.
GSTR-2B will play a vital role in making ITC & ITC Reconciliation simple yet accurate, as it should be.
The government has additionally included the import details in the form which is even better as now you won't have to visit the ICEGATE Portal for these details.
Apart from this, GSTR-2B also contains the GSTR-3B section-wise data, meaning the details you need to declare in Table 4A of GSTR-3B will be mentioned separately & marked accordingly in Form GSTR-2B.
This will avoid any confusions & help the accountants in GSTR 3B filing using GSTR-2B data.
Recently, the government has decided to issue a notice even for the taxpayers who claim deficient ITC, earlier only taxpayers who claimed excess ITC were liable to such legal discrepancies.
So, day by day it is becoming very important that businesses must claim the most accurate amount of Input tax credit.
It is not only beneficial for businesses but also for the government to control fraudulent activities.
All this and more can be made streamlined & organized simply by reconciling & matching the various data vigorously & thoroughly, which is one of the reasons why GSTR-2B came into the picture.Businesses can directly reconcile their purchase books with this auto-draft that already contains all the officially calculated figures so that there will be no chance of errors & extra efforts in doing the calculation work.
One can simply pick up the two files & reconcile their data, in less time effortlessly.
What and How about Form GSTR-2B Reconciliation
What is the primary use of the GSTR-2B Form?
Am I required to file GSTR-2B?
- You, as a taxpayer are not required to fill the GSTR-2B.
- It’s an auto-populated statement that indicates the availability of the Input Tax Credit hence; it’s used as a reference document.
Am I required to reconcile my books of accounts with the data generated in Form GSTR-2B?
- The entries in the books of accounts of the taxpayer and the data generated in the GSTR-2B should be reconciled well.
- This activity will surely help in minimizing the errors and avoiding duplicate entries.
- Taxpayers should ensure that no credit is availed twice for any document.
Can I make changes to or add a document in my Form GSTR-2B?
No, it is not possible for you as a taxpayer to make any changes or add a document to Form GSTR-2B, as it is a read-only static ITC statement.
Can I download and maintain a copy of my GSTR-2B Form for future reference?
Yes, Form GSTR-2B for a given tax period will be available for viewing and/or downloading (in Excel and/or JSON formats) in post-login mode on the GST portal.
Can I download individual table-wise details in Form GSTR-2B Reconciliation?
Yes, GST Portal allows you to download individual table-wise details for the Form GSTR-2B.
The GST Portal shall provide the link to download the Excel file but only when the total number of documents across all tables is up to 1000 documents.
How is GSTR-2B Generated on GST Portal?
This date will usually fall between the filing date of GSTR-1 for the previous month and the filing date of GSTR-1 for the current month.
Let us take an example to understand this concept better:
For any company XYZ, GSTR-2B for June will consist of all the documents filed by suppliers in their GSTR-1, GSTR-5, and GSTR-6 from 00:00 hours on 12th June to 23:59 hours on 11th July.
To generalize this concept we can simply say that, GSTR-2B is generated on a date between GSTR-1 filing of the previous month (T-1) to GSTR-1 filing of the current month (T).The extracted data corresponds to which data can be found out in the 'View Advisory’ tab in the GST Portal.
Learn about How to file GSTR 1 Nil Return, in the link provided.
GSTR-2B Reconciliation: Comparing GSTR-2A and GSTR-2B
There are some major differences between GSTR-2A and GSTR-2B.
In the table drawn below, we can learn about the differences in their aspects.
Changes from day-to-day as and when supplier uploads the documents
It’s a static statement for a particular tax period. Cannot be modified based on the future operations of the supplier.
Source of Information
GSTR-1, GSTR-5, GSTR-6, GSTR-7, GSTR-8
GSTR-1, GSTR-5, GSTR-6, ICEGATE System
Input Tax Credit on Import of Goods
Contains details of ITC of IGST available on imports (overseas & inward supplies from SEZ units/developers) flowing from ICEGATE to the GST system
Includes this based on ICEGATE System
How to View & Download GSTR-2B Reconciliation Data from the GST Portal?
Any taxpayer can download the GSTR-2B form from the GST portal of the Government of India.
form 2b will be generated for every recipient as per the data submitted by the suppliers in GSTR-1, GSTR-5, and GSTR-6.
Which taxpayers are eligible to view the GSTR-2B form?
Following classes of taxpayers will be eligible to view the GSTR-2B forms from the GST Portal.
- Normal Taxpayers
- SEZ Taxpayers
- Casual Taxpayers
Learn more about GST return filing taxpayers and their types in our detailed blog.
Follow the simple procedure shown below to download your GSTR-2B now.
Step 2: From the homepage, click on the Services tab. Navigate as Services -> Returns -> Returns dashboard .
Step 3: On the next page you’ll see the ‘File Returns’ form. Here you’ll have to furnish the required details like ‘Financial Year’, ‘Return Filing Period’.
GSTR-2B document can be downloaded in the JSON or EXCEL format.
NOTE: You can download individual table-wise details in Form GSTR-2B by clicking the Download Excel tab.
This link will be available only when the total number of documents across all tables is up to 1000 documents.
After clicking on the ‘Download’ button, you can see the following page:
You can also use the ‘View’ button to get a preview of the form before downloading.
You’ll get the links to download different parts of the Form GSTR-2B from the table as shown above.
What Are the Details Available in GSTR-2B Reconciliation?
In this section let us have a look at the details/columns present in the GSTR-2B Form.
Do not worry if you get confused, we will try to simplify the details so that you can understand the details bit by bit without any worries.
Details in GSTR-2B Summary
There are two parts in which this summary is classified:
- ITC Available: In this category, you can find the summary of ITC available as on the date of its generation and is divided into a credit that can be availed and credit that is to be reversed
- ITC NOT Available: A summary of ITC not available and is divided into ITC not available and ITC reversal.
Details in PART-A of ITC Available
The PART-A of ITC Available contains details of inward supplies (invoices, debit notes, and amendments related to invoices and debit notes) and import of goods received from suppliers, in the following manner:
1. All Other ITC – Supplies from registered persons
2. Inward Supplies from Input Service Distributor/ISD
3. Inward Supplies liable for reverse charge
4. Import of Goods
Details in PART-B of ITC Reversal
The PART-B of ITC Reversal contains details of credit notes and amendments thereof issued by the suppliers:
Details in PART-A of ITC Not-Available
The details of inward supplies received from the suppliers are to be furnished in this part:
1. All Other ITC – Supplies from registered persons
2. Inward Supplies from Input Service Distributor/ISD
3. Inward Supplies liable for reverse charge
Details in PART-B of ITC Not-Available
This section contains the details of credit notes and amendments thereof issued by the suppliers.
How to know if available ITC is ineligible
in GSTR 2B return?
Input Tax Credit shall remain unavailable in the following cases:
Invoice or debit note for the supply of goods or services or both where the recipient is not entitled to an Input Tax Credit under GST as per the provisions of sub-section (4) of Section 16 of the CGST Act, 2017.
Invoice or debit note where the Supplier (GSTIN) and place of supply are in the same State while the 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 should self-assess and reverse such credit in their FORM GSTR-3B.
What are the Advantages of GSTR-2B?
GSTR-2B format can prove to be a very informative document and can be used for the taxpayer’s reference.
Following are some of the salient features of GSTR-2B:
It is generated on a frequency of monthly basis; hence it can be easily synchronized with the regular tax-flow.
Provides an option to download data in Excel and PDF.
The taxpayer, with the help of GSTR-2B form, can confirm if he can avail of ITC.
Advanced text search & featuring & indexing allow the taxpayer to view the documents that exceed 1,000 records.
You can sort the results and download them accordingly.
Detailed analysis of invoices, credit cum debit bills, as well as notes, can be viewed and also, downloaded.
How does GSTHero help with GSTR-2B?
It is evident from the facts that GSTR 2B return filing is very important for the reconciling activity which in turn, can help you avail maximum Input Tax Credit.
For a flawless reconciliation in GSTR-2B or GSTR-2A, you’ll be requiring the assistance of some user-friendly technical solution.
GSTHero will offer you the best Reconciliation experience with a user-friendly User Interface and advanced reconciliation tool.
GSTHero allows the hassle-free download of GSTR 2A & 2B records and also enables the reconciliation of these records.
So, overall, GSTR-2B is a useful resource for you for reconciling & claiming max ITC. But reconciliation remains constant whether it is with GSTR-2A or GSTR-2B.With both the forms, you will have to match the details manually as per guided in GSTR-2B notification.
The only difference with GSTR-2B in GST will be that the ITC data will be separated into a more organized return report.
For a better reconciliation with both GSTR-2A & GSTR-2B, you need help from some advanced & high-tech solution, to make the reconciliation simpler & yet more effective to claim maximum ITC.
GSTHero offers you the best reconciliation experience with our stacked with features Advanced Reconciliation Tool, which is the best reconciliation solution there is.
As per the latest GSTR-2B update we have enabled the option to download GSTR-2B from GSTHero Portal for ITC reconciliation with your purchase records.
With GSTHero you can download GSTR-2A&B within a few seconds & then reconcile them with your purchase data within a few minutes, with the help of all the configuration & other features.
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