GSTR2B Checklist

With effect from the tax period August 2020, a new static auto-drafted statement in Form GSTR-2B was introduced. Notably, GSTR-2B possesses vital importance in the life of a registered taxable person under GST since the same is directly related to the availment of the input tax credit.

In order to curb the practice of fake invoicing and fake availment of the input tax credit, various amendments are introduced (yet not notified) under the Finance Act, 2022 referring to and co-relating Form GSTR-2B, input tax credit availment and restriction imposed vide section 38 of the Central Goods and Services Tax Act, 2017.

The present article firstly explains the provisions governing GSTR-2B; then, travels to the provisions inter-linking GSTR-2B and availment of the input tax credit; then, explains the entire format of GSTR-2B and finally reaches to the checklist of GSTR-2B helpful for avoiding litigation and maximizing availment of an input tax credit.

GSTR2B Governing Provisions

GSTR2B Provisions

The provisions governing GSTR-2B under the Central Goods and Services Tax Act, 2017 as well as under the Central Goods and Services Tax Rules, 2017 are highlighted in the table below

Provisions

Explanation

Section 37(1) of the Central Goods and Services Tax Act, 2017

The provision simply states that the details of outward supplies in GST furnished by the supplier in Form GSTR-1 will be communicated to the recipient within such time and manner as may be prescribed.

Rule 60(7) of the Central Goods and Services Tax Rules, 2017

The provision states that, an auto drafted ITC statement, in Form GSTR-2B, will derive details from the specified sources (explained below).

Rule 60(8) of the Central Goods and Services Tax Rules, 2017

The provision states the due date within which Form GSTR-2B will be made available to the recipient (explained below).

As per rule 60(7), GSTR-2B will derive details from the following specified sources

  • Form GSTR-1/ Invoice Furnishing Facility GSTR 1 return filing furnished by a normal taxable person (quarterly / monthly);
  • Form GSTR-5 – Return furnished by a non-resident taxable person;
  • Form GSTR-6 – Return furnished by input service distributor;
  • ICEGATE – Details of import of goods.

How to Download GSTR 2B?

As per rule 60(8), the recipient can download GSTR-2B for the month on the 14th of the succeeding month. The recipient needs to follow the below steps to download GSTR-2B from the GST portal –

  • STEP 1 – Go to the GST portal https://www.gst.gov.in;
  • STEP 2 – Click Login and enter ‘Username’ and ‘Password’;
  • STEP 3 – Select the following path
    Services – Returns > Returns Dashboard;
  • STEP 4 – From the drop-down list, select relevant ‘Financial Year’ and ‘Return filing period’;
  • STEP 5 – Click SEARCH;
  • STEP 6 – ‘Auto drafted ITC Statement GSTR-2B’ with visible. It has two options ‘VIEW’ and ‘DOWNLOAD’;
  • STEP 7 – Select ‘Download’.

Notably, the GSTR-2B download is available in the following two options (formats) –

  • Generate JSON file to download – select this format/ option to download GSTR-2B in JSON file; and
  • Generate Excel file to download – select this format/ option to download GSTR-2B in an excel file.

GSTR2B and Input Tax Credit Availment 

GSTR2B and ITC

Above, we went through the provisions governing GSTR-2B. Now, let us go through the provisions through which inter-linking of GSTR-2B and availment of the input tax credit is established under GST. The provisions are explained hereunder –

Notably, both the above provisions i.e. section 16(2)(aa) and rule 36(4)(b) ends up stating the same thing.
GSTR2B Availment

As per the input tax credit condition laid down under section 16(2)(aa), the recipient is entitled to avail of input tax credit only when the supplier communicates the same in Form GSTR-2B.

In our previous article we discussed on ITC claim in GST with all major conditions and checklist in details.

Further, according to the provisions of rule 36(4)(b), the input tax credit is not available unless the details of the respective invoice/ debit note are communicated to the recipient via Form GSTR-2B.

GSTR2B Format : Explain in Details

GSTR 2B format

After going through the importance of GSTR-2B, it is also essential to understand the format of the same.

As of now, other than basic details of the registered taxable person, Form GSTR-2B is broadly divided into two parts featuring ‘Summary of available Input Tax Credit’ and ‘Summary of not available Input Tax Credit’. Both the parts are explained hereunder –

The part covering ‘Summary of available Input Tax Credit’ –

Part A – Input Tax Credit Available

Particulars

Corresponding table no. of GSTR-3B where input tax credit can be claimed

Action

Input Tax Credit available against supply from registered persons (other than reverse charge).

Table 4(A)(5) of GSTR 3B return filing

  • If the figure displayed here is positive, the taxable person can avail of input tax credit under Table 4(A)(5) of GSTR-3B;
  • If the figure displayed here is negative, the taxable person has to reverse the input tax credit under Table 4(B)(2) of GSTR-3B.

Input Tax Credit under GST available against inward supplies from input service distributor

Table 4(A)(4) of GSTR-3B

  • If the figure displayed here is positive, the taxable person can avail of input tax credit under Table 4(A)(4) of GSTR-3B;
  • If the figure displayed here is negative, the taxable person has to reverse the input tax credit under Table 4(B)(2) of GSTR-3B.

Input Tax Credit available against inward supplies liable for reverse charge

Table 3.1(d) and Table 4(A)(3) of GSTR-3B

  • The input tax credit of the same is to be availed under Table 4(A)(3) of GSTR-3B.

Input Tax Credit available against the import of goods

Table 4(A)(1) of GSTR-3B

  • If the figure displayed here is positive, the taxable person can avail of input tax credit under Table 4(A)(1) of GSTR-3B;
  • If the figure displayed here is negative, the taxable person has to reverse the input tax credit under Table 4(B)(2) of GSTR-3B.

Part B – Input Tax Credit Reversal

Cell
Cell

Input Tax Credit shall be reversed

Table 4(B)(2) of GSTR-3B

  • If the figure displayed here is positive, the taxable person will have to reverse the input tax credit under Table 4(B)(2) of GSTR-3B;
  • If the figure displayed here is negative, the taxable person can avail of the input tax credit only if the same was reversed earlier.

The part covering ‘Summary of not available Input Tax Credit’ –

Part A – Input Tax Credit not available

Particulars

Action

Input Tax Credit not available against supply from registered persons (other than reverse charge in GST ).

No action is to be taken since the input tax credit is not available the same is not to be reflected in GSTR-3B.

Input Tax Credit not available against inward supplies from input service distributor

No action is to be taken since the input tax credit is not available the same is not to be reflected in GSTR-3B.

Input Tax Credit not available against inward supplies liable for reverse charge

Here, also input tax credit is not available. However, for payment of tax on reverse charge, the same is to be declared under table 3.1(d) of GSTR-3B.

Part B – Reversal of ITC


Input Tax Credit shall be reversed

Input tax credit needs to be reversed under Table 4(B)(2) of GSTR-3B.

It is important to note that the above GSTR 2B format will get amended once the provisions as proposed vide the Finance Act, 2022 are notified.

GSTR2B Checklist to Avoid Notices, Penalty, Late Fees

After going through all the above provisions, it is pretty clear that GSTR-2B is vitally important under GST for the registered taxable person. Let us prepare the checklist of the same in order to avail of the maximum ITC reversal and also avoid any litigations and penal provisions under GST-

Firstly, carry out the home work

Work out the input tax credit available on the basis of the transactions of receipt of goods or services or both undertaken during the relevant month;

Then, refer to the data available with the GST department

On the 14th of the succeeding month, download Form GSTR-2B using the steps as described above;

Then, compare the home data and data available with the GST department

Carry out the GSTR 2B reconciliation (preferably part-wise) between input tax credit as worked out under Step 1. above and input tax credit as detailed under GSTR-2B downloaded under Step 2

Post GST reconciliation, in order to avoid any litigations and penal actions, avail the input tax credit only to the extent of the same reflected in GSTR-2B and reverse the remaining input tax credit;

Post GST ITC reversal , in order to maximize ITC with GSTR2B filing, point the supplier to correct necessary mistakes in the next GST return filing period.


CA Poonam Gandhi

About the author

Poonam Gandhi is a Chartered Accountant and a Lawyer. She is a Professional Freelance Content Writer/ Editor and an Educator.

She masters in creating result-oriented as well as Search Engine Oriented Content. Currently, she is associated with some of the topmost leading sites of India.

She holds more than 3 years of experience in the content field. Before entering the content writing field, she possessed a wide practice experience of more than 9 years, specifically, in the field of Indirect Taxation.

Follow us:

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}