GSTR-2B is an auto-drafted ITC statement that is generated for every normal taxpayer on the basis of the information furnished by his suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person), and GSTR-6 (input service distributor). The statement indicates the availability and non-availability of input tax credits to the taxpayer against each document filed by his suppliers.
The due date for the previous month (M-1) to the due date of furnishing may be noted that the process of GSTR-2B generation starts after the ending of IFF, GSTR-5, and GSTR-6 due date on the 13th at midnight and therefore GSTR-2B can be made available to the taxpayer in the afternoon of14th of the month.
Further, GSTR-2B is a static statement and is made available for each month on the 14th day of the succeeding month. For example, for July 2020, the statement was generated and made available to the registered person on the 14th of August 2020. Details of all the documents in GSTR-2B For monthly GSTR-1 filers, any GSTR-1 filed between the due date of furnishing for the previous month (M-1) to the due date of furnishing of GSTR-1 for the current month (M).
For example, GSTR-2B generated for Jan 2021 contains the details of all the documents filed by suppliers in their monthly GSTR-1 from 00:00 hours on 12th Jan 2020 to 23:59 hours on 11th Feb 2020. For quarterly GSTR-1/IFF, GSTR-5, and 6 filers, any IFF/GSTR-1/5 and GSTR-6 filed between month (M).
Meaning
The GSTR-2 is a monthly tax return showing the purchases you’ve made for that month. When you make purchases from registered vendors, the information from their sales returns (GSTR-1) will be available in the GSTN portal as GSTR-2A for you to use in your GSTR-2. Just as the GSTR-1 mentioned above deals with outward supplies, the GSTR-2 deals with inward purchases of taxable goods, services, or both. GSTR-2 is a monthly inward supply report, which can also include reverse charge transactions. The special feature of GSTR-2 is that the details of supplies received by a recipient can be auto-populated based on the details furnished by the counterparty supplier in his GSTR-1.
The special feature of GSTR-2 is that the details of supplies received by a recipient can be auto-populated based on the details furnished by the counterparty supplier in his GSTR-1.
The implementation of GST has brought about a fundamental shift in the financial relations between the Central Government and the State Governments in India. GST is a unified tax system that replaced multiple indirect taxes levied by both the Central and State Governments. Under GST, both the Central and State Governments share the authority to levy and collect taxes on goods and services. This has led to greater harmonization and uniformity in the tax structure across States, promoting economic integration.
Salient Features of GST
Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. Here are some of the salient features of GST:
- One Nation, One Tax
- Dual Structure
- Destination-based Tax
- Input Tax Credit (ITC)G
- Threshold Exemption
- Composition Scheme Online Compliance
- Anti-Profiteering Measures
- Increased Compliance and Transparency Sector-specific Exemptions
Uses of GSTR-2
GSTR 2 gives complete information on Inward Supply, i.e., purchases for a given tax period. Every registered person is required to file GSTR 2. The data of which is used by the government to check the seller’s GSTR 1 data for buyer-seller reconciliation.
GSTR-2B
GSTR 2B is an auto-generated Input Tax Credit Statement (ITC) that has been recently introduced on the GST portal. It is generated monthly and aims to simplify ITC claims for registered taxpayers.
Who needs to file the GSTR-2?
Every business in India registered under the Goods and Services Tax needs to file GSTR 2 monthly. It notes the purchases that an enterprise has made in a particular month. GSTR 2 contains invoice details of all supplies it has received or all purchase transactions made. Including those that invite reverse charges.
Conclusion
In conclusion, GSTR-2B is an essential document for taxpayers to avail of Input Tax Credit (ITC) based on the details. Of inward supplies furnished by their suppliers in their respective GSTR-1/IFF, GSTR-5, and GSTR-6.
The statement is auto-generated and made available to taxpayers on the 14th of every month, and it provides. The details of all the documents filed by suppliers for the previous month. Additionally, the implementation of GST has brought about several fundamental changes in the tax structure in India, promoting greater. Harmonization and uniformity in the tax structure across States.
The dual structure of GST comprising Central (CGST) and State (SGST) levied concurrently by the Central and State governments. Respectively, has reduced tax barriers and streamlined the tax system, leading to improved efficiency and competitiveness in the Indian economy.
This blog is written by Kratika Pal.
