What is GSTR-2?
Form GSTR 2 is a statement in which a regular dealer needs to capture all the inward supplies made during the month. Broadly, all the inward supplies from registered businesses, including the supplies on which tax needs to be paid on reverse charge are required to be captured at the invoice level to file GSTR 2. In addition to inward supplies, one also needs to declare - the details of advances paid on supplies liable for reverse charge, and also, the advance amount on which tax was paid in the earlier returns period but the invoice has been received in the current returns period. As per the latest recommendations, for the period of July ’17 to March ‘18, filing of GSTR-1 will be allowed to be done without filing GSTR-2 and GSTR-3 for the previous month, and the dates for filing of GSTR-2 and GSTR-3 will be decided by a committee of officers and communicated in due course of time.
What is GSTR-2A?
Form GSTR 2A is an auto-populated statement in which the visibility of all the inward supplies reported by one’s supplier in GSTR 1, is made available to the recipient. The details will be made available on submission of the return on the GST portal. Apart from the details of GSTR 1, the details from GSTR 5 (Supplies from Non-Resident taxable person), GSTR 6 (ISD), GSTR 7 (TDS Deductor) and GSTR 8 (TCS collected by e-commerce operator) will also be auto-populated.
One can either directly view the details of GSTR 2A in the GST Portal or download the GSTR 2A file and view it in the offline utility tool, depending on the number of invoices. Up to 500 invoices / records can be viewed online for a particular table or section in GSTR 2A. In case there are more than 500 invoices, one has to download and view the GSTR 2A invoice details using the offline utility tool.
How are GSTR 2A & GSTR 2 related?
Unlike GSTR 1, which requires businesses to upload all the details of outward supplies, GSTR 2 filing does not require one to declare all the details of inward supplies. Most of the details in GSTR 2 is auto-populated, based on the outward supplies declared by one’s suppliers in their returns. The auto-populated details of inward supplies made available in GSTR 2A, will be available in GSTR 2 also. In other words, GSTR 2A will be an exact replica of the GSTR 2 format, containing only the details declared by one’s suppliers in GSTR 1.
Therefore, one need not upload all the details of inward supplies, instead one needs to reconcile the details of inward supplies available in GSTR 2A, with one’s books of accounts for GSTR 2 filing.Accordingly one should figure out the additions, modifications and deletion required in the invoices made available in GSTR 2A, and carry out the requisite actions in the GSTR 2 format.
Actions Permitted in GSTR
The following actions can be performed to correct the details and to file GSTR 2:
The ‘Add’ action in GSTR 2 allows one to provide additional details which are required to be furnished in GSTR 2, but are not part of GSTR 2A. In GSTR 2, the details of imports, supplies attracting reverse charge that have been received by registered persons and inward supplies received from registered suppliers which are not reflecting in GSTR 2A and so on are required to be added by using the ‘Add’ action.
The ‘Modify’ action in GSTR2 needs to be performed if the invoice details are incorrect. This could happen, if one’s supplier has made an error while uploading the invoice details in GSTR 1.
The ‘Reject’ action in GSTR 2 needs to be performed, if any of the invoices auto-populated in GSTR 2A have not been received by a dealer, and need to be rejected. This occurs, if the supplier has wrongly mentioned one’s GSTIN but the actual recipient is different.
Consider a situation, where the date of supply of goods by one’s supplier and the date of receipt of goods are in two different months. In this case, one will become eligible to claim ITC only in the subsequent month, since, only when the invoice and the goods are received, will one be allowed to claim ITC on a provisional basis. This provisional ITC becomes one’s final eligible ITC when one’s supplier furnishes his returns along with the payment of tax.
However, the supplier is still required to upload and pay the tax liabilities on this invoice in the month of supply. This invoice will be part of GSTR 2A and thus one has to mark it as ‘Pending’ for that month. Once an invoice is marked as ‘Pending’, it will appear in the records of the next month, for one to accept and claim ITC in the next month.
How to file GSTR 2 Form?
Form GSTR 2 filing contains 13 tables in which the following details need to be captured:
- Table 1: Details of GSTIN
- Table 2: Traders’ details
- Table 3: Details of Inward supplies received from a registered person other than the supplies attracting reverse charge
- Table 4: Details of Inward supplies on which tax has to be paid on reverse charge.
- Table 5: Details Inputs/Capital goods received from Overseas or from SEZ units on a Bill of Entry
- Table 6:Amendments to details of inward supplies furnished in returns for earlier tax periods and details of debit notes/credit notes issued
- Table 7:Details of Supplies received from composition taxable person and other exempt/Nil rated/Non GST supplies received
- Table 8: Details of Credit received from ISD
- Table 9:Details of TDS and TCS credit received
- Table 10:Details of advances paid/advance adjusted on account of receipt of supply
- Table 11:Details of Input tax credit reversal/ Reclaim.
- Table 12: Details of addition and reduction of amount in output tax for mismatch and other reasons
- Table 13: HSN Summary of Inward Supplies
In conclusion, it can be said that GSTR 2A is not required to be filed, but rather, it is just a read-only document which provides the facility to view all the invoices uploaded by one’s suppliers. Any action on the details of inward supplies available in GSTR 2A, needs to be performed in the GSTR 2 return.
This is the most critical phase of filing one’s return, as any omission or correction not actioned as per the statement in GSTR 2A with one’s inward supplies register, will impact one’s input tax credit eligibility. Technology will play a key role in assisting and ensuring accurate reconciliation is carried out, thereby saving time and mitigating the risk of ITC loss.