GSTR 2B: All the Details About Auto-Drafted ITC Statement
GSTR 2B is an auto-drafted ITC statement prepared based on the taxpayer data through GSTR 1, GSTR 5, and GSTR 6. It has two parts that denote the Input Tax Credit‘s availability and non-availability for each taxpayer. When a supplier provides inputs through GSTR 1, GSTR 5, and GSTR 6, the recipient of supplies can view the ITC in GSTR 2B.
The GSTR 2B is available for each normal taxpayer, SEZ, and casual taxpayers monthly. It remains constant, unlike GSTR 2A which keeps changing based on the details provided by the suppliers. ITC details from the date of filing of GSTR 1 for the preceding month till the filing date of GSTR 1 for the current month are reported through GSTR 2B.
GSTR 2B Contents
- ITC available and ITC not available summary statement
- Advisory on what kind of action taxpayers can take
- Cut off dates and advisory on generating GSTR 2B
- Detailed information on invoices, credit notes, debit notes, and more
- Import of goods and import from SEZ units and developers
The GSTR 2B has two parts, which report ITC Available and ITC not Available for each month in a financial year.
ITC Available is reported through part A of the return and it contains information about inward supplies, credit-debit notes, import of goods including ITC for supplies from registered persons, ITC from ISD, ITC towards inward supplies on reverse charge, and import of goods. Part B contains ITC reversal.
The second part of the monthly GSTR 2B contains details on unavailable ITC including invoice or CDN details. It further reports ITC for supplies from registered persons, ITC from ISD, and ITC towards inward supplies on reverse charge. Part B includes CDN details and amendments.
In the following circumstances, the ITC is shown as not available in GSTR 2B.
- When the purchaser is ineligible for ITC for an invoice or debit note to be issued for the supply of goods and services
- In case the place of supply and supplier’s state is the same, whereas the recipient is located in a different place
- When the due date to claim an input tax credit on an invoice or debit note has already expired for the relevant financial year
Why GSTR 2B is Important?
The GSTR 2B holds immense importance, especially for buyers. It offers a consolidated overview of purchases and gives an overview of the input tax credit. It results in the reconciliation of purchase data and recovering any overlooked ITC. Buyers can also know about the credit availability, following which they can take early steps to claim the same. GSTR 2B ensures the following
- Accurate details on input tax credit available and not available due to various reasons
- Ensure GST is paid on a reverse charge basis
- Reports data of GSTR 3B for which input tax credit of an invoice or debit note can be taken
How to Generate GSTR 2B: An Auto Drafted Statement?
As the GSTR 2B is an auto-drafted statement, taxpayers cannot manually generate it. The details submitted by the supplier get updated into the GSTR 2B for the recipient.
- The supplier files GSTR 1 and reports outward supplies. Then the supplier’s GSTR 1 data is auto-populated into the GSTR 2B of the recipient
- Irregularities between the supplier’s invoices and the recipient’s returns have to be reconciled into the GSTR 2B
- Once reconciled, the recipient can file the return on the GST portal
GSTR 2B was introduced in August 2020. It aimed to help in the reconciliation of ITC regularly for the recipients or buyers. It is an Auto-drafted statement that is based on the GSTR 1 and GSTR 3B returns of the supplier.
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