GSTR-2B- Auto Drafted ITC Statement

GSTR-2B is now available on the GST Portal. There are a lot of confusions that are arising among taxpayers and professionals regarding GSTR-2B. In this article, we are clarifying some basic aspects of GSTR-2B. We are also covering contents (Table wise details) on GSTR-2B.

What is GSTR- 2B?

• GSTR-2B is an auto-drafted ITC statement which will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR-1, 5 (non-resident taxable person) and 6 (input service distributor). 
• The statement will indicate the availability of input tax credit to the registered person against each document filed by his suppliers. 

Will GSTR-2B contain static data( month wise) or cumulative data?

• GSTR-2B is a static statement and will be made available for each month on the 12th day of the succeeding month. 
• For example, for the month of July 2020, the statement will be generated and made available to the registered person on 12th August 2020.  

Which period's data will get reflected in the current period of GSTR-2B?

• GSTR-2B for a month (M) will contain the details of all the document filed by his suppliers in their respective GSTR-1, 5 and 6 between the due date of furnishing of GSTR-1 for previous month (M-1) to the due date of furnishing of GSTR-1 for the current month (M).
•  For example, GSTR-2B generated for the month of July, 2020 will contain the details of all the documents filed by suppliers in their GSTR-1, 5 and 6 from 00:00 hours on 12th July, 2020 to 23:59 hours on 11th August 2020.

 What are the benefits of GSTR-2B?

• The data in GSTR-2B is reported in a manner that allows taxpayers to conveniently reconcile ITC with their own books of accounts and records. 
• It will help them in easier identification of documents to ensure the following:
• The input tax credit is not availed twice against a particular document.
• The tax credit is reversed as per the GST law in their GSTR-3B, wherever required.
• GST is correctly paid on a reverse charge basis for the applicable documents, including the import of services.

How to open GSTR-2B on the poratal?

1. Log in to the GST portal.
2. Click on the ‘Returns Dashboard’.
3. Select the month and year.
4. Click on GSTR-2B tab.
5. Click on the Download button to save it in your drive.

Other important points of GSTR-2B:

• GSTR-2B also contains information on import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / Developers. This will be made available from GSTR-2B of August 2020 (generated on 12th September 2020). 
• It may be noted that reverse charge credit on import of services is not a part of this statement and will be continued to be entered by taxpayers in Table 4(A)(2) of FORM GSTR-3B.
• Details of all the documents in GSTR-2B is made available online as well as through download facility. 

***Contents (Table Wise details) of GSTR-2B***

Table 3 ITC Available Part A Section I All other ITC - Supplies from registered persons other than reverse charge:-

• This section consists of the details of supplies (other than those on which tax is to be paid on reverse charge basis), which have been declared and filed by your suppliers in their FORM GSTR-1 and 5. 
• Negative credit, if any, may arise due to amendment in B2B– Invoices and B2B – Debit notes. Such credit shall be reversed in Table 4(B)(2) of FORM GSTR-3B.

Table 3 ITC Available Part A Section II Inward Supplies from ISD:

• This section consists of the details of supplies, which have been declared and filed by an input service distributor in their FORM GSTR6. 
• Negative credit, if any, may arise due to amendment in ISD Amendments – Invoices. Such credit shall be reversed in table 4(B)(2) of FORM GSTR-3B.

Table 3 ITC Available Part A Section III Inward Supplies liable for reverse charge:

• This section consists of the details of supplies on which tax is to be paid on reverse charge basis, which have been declared and filed by your suppliers in their FORM GSTR-1. 
• These supplies shall be declared in Table 3.1(d) of FORM GSTR-3B for payment of tax. Credit may be availed under Table 4(A)(3) of FORM GSTR-3B on payment of tax. 

Table 3 ITC Available Part A Section IV Import of Goods:

• This section provides the details of IGST paid on import of goods from overseas and inward supply of goods from SEZ units / developers on bill of entry and amendment thereof. These details are updated on near real time basis from the ICEGATE system.
• This table contains the data of imports made by you (GSTIN) in the month for which GSTR-2B is being generated for.
• The ICEGATE reference date is the date from which the recipient is eligible to take input tax credit.
• The table also provides if the Bill of entry was amended. 
• Information is provided in the tables based on data received from ICEGATE. Information on certain imports such as courier imports may not be available.
• This data will be made available from GSTR-2B of August 2020 onwards (i.e. 12th September 2020). 

 Table 3 ITC Available Part B Section I Others:

• This section consists of the details of credit notes received and amendment thereof which have been declared and filed by your suppliers in their FORM GSTR-1,5 and 6.
• Such credit shall be reversed under Table 4(B)(2) of FORM GSTR-3B. If this value is negative, then credit may be reclaimed subject to reversal of the same on an earlier instance.

Table 4 ITC Not Available Part A Section I All other ITC - Supplies from registered persons other than reverse charge: 

• This section consists of the details of supplies (other than those on which tax is to be paid on reverse charge basis), which have been declared and filed by your suppliers in their FORM GSTR-1 and 5.
• This is for information only and such credit shall not be taken in FORM GSTR-3B.

Table 4 ITC Not Available Part A Section II Inward Supplies from ISD:

• This section consists of the detail of supplies, which have been declared and filed by an input service distributor in their FORM GSTR-6.
• This is for information only and such credit shall not be taken in FORM GSTR-3B. 

Table 4 ITC Not Available Part A Section III- Inward Supplies liable for reverse charge:

• This section consists of the details of supplies liable for reverse charge, which have been declared and filed by your suppliers in their FORM GSTR-1.
• These supplies shall be declared in Table 3.1(d) of FORM GSTR-3B for payment of tax. However, credit shall not be taken in FORM GSTR-3B.

Table 4 ITC Not Available Part B Section I Others :

• This section consists details the credit notes received and amendment thereof which have been declared and filed by your suppliers in their FORM GSTR-1,5 and 6.
• Such credit shall be reversed under Table 4(B)(2) of FORM GSTR-3B

Read Table-Wise Details in GSTR-9 Annual Return

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[Disclaimer:-This article is being furnished for informational purposes only. We make every effort to use reliable & comprehensive information, but we do not represent that the contents of the article are accurate or complete.]