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GSTR-3B vs GSTR-2A is an essential exercise that businesses must not miss out. It helps businesses affirm the full Input tax credit (ITC) and reverses any excess ITC claimed. In turn, the reconciliation before filing GSTR-3B will help avoid any capable demand notices from the tax authorities. With GSTR-2B, matching ITC to be affirmed in GSTR-3B with GSTR-2A has now moved to a yearly affair, yet crucial for TDS and TCS credit.
Recently, under the GST Act, 2017, the following two types of auto-populated returns/statements have been introduced:
GSTR 2A provides the details of the inward supply, and GSTR 2B offers the details of the ITC. Since these two statements contain similar information yet, it is essential to understand the difference between the similarities. This article briefly distinguishes GSTR-2A and GSTR-2B and provides guidance on which one to be used to avail ITC while filing GSTR 3B
GSTR 2A
GSTR 2A is a dynamic tax return related to purchases, which the GST portal generates automatically for each business. When the seller submits their outward supplied in GSTR-1, GSTR 2A will capture this information. It takes the information about the goods and services purchased in a given month from the seller’s GSTR-1 and reflects it in the purchasers GST portal. GST registered purchasers can view their purchases in GSTR-2A and can avail of the input tax credit when filing GSTR-3B and GSTR-9. However, from August 2020 onwards, for availing of ITC in GSTR-3B, taxpayers should refer to GSTR-2B, a static version of GSTR-2A.
Form GSTR-2A gets auto-generated based on the information filed by supplier vide following returns:
|
Return |
Filed by |
|
Form GSTR-1 |
Normal registered person |
|
Form GSTR-5 |
Non-resident |
|
Form GSTR-6 |
Input service distributor |
|
Form GSTR-7 |
Person liable to deduct TDS |
|
Form GSTR-8 |
E-Commerce operators are liable to collect the tax |
GSTR-2B
Form GSTR-2B is an automatically generated ITC statement when the suppliers file their GSTR-1, GSTR-5, and GSTR-6. It also contains information on imports from the ICEGATE (Indian Customs Electronic Gateway) system, including inward supplies of goods received from the SEZ (Special Economic Zone).
Since the data in GSTR-2B is static and does not change after one month, you can use GSTR-2B to get accurate input for GSTR-3B. This is just a “read-only static auto-drafted” ITC statement and must be submitted/ accepted/ modified as a return.
The distinction between Form GSTR-2A and Form GSTR-2B
The following table describes the differences between GSTR-2B and GSTR-2A.
|
Parameters for Comparison |
GSTR-2A |
GSTR-2B |
| Purpose of Statement | An auto-populated statement provides details of ITC to every recipient of supplies, based on the outward supplies data filed by suppliers, including changes made later. | A constant auto-populated statement that provides details of the ITC statement to every recipient of supplies, based on the outward supplies data filed by suppliers for every tax period. |
| Nature of the statement | Dynamic in nature, as it changes from time to time. | Static in nature, as once GSTR-2B is generated, it can’t be changed. |
| Frequency of availability | Monthly | Monthly |
| Source of information | GSTR-1 or GSTR 1 Invoice Furnishing Facility, GSTR-5, GSTR-6, GSTR-7, GSTR-8 | GSTR-1 or Invoice Furnishing Facility (i.e. IFF), GSTR-5, GSTR-6. |
| When will ITC entries get transferred from sources? | GSTR-1: Saved, filed, or submitted GSTR-6: Submitted GSTR-7 and GSTR-8: Filed |
GSTR-1, GSTR-5, or GSTR-6: Filed |
| The cut-off date for entries, to view the statement for a tax period | NA, as it’s a dynamic statement |
11th or 13th of the subsequent month (relying on the return filing frequency). The statement will be caused on the 14th of the subsequent month. |
| Maximum ITC entries that can be observed on GST portal without excel download | Total of 500 rows | Total of 1,000 rows |
The basis for availing of input tax credit
Under Rule 36(4) of the CGST Rules, 2017, the registered person will be eligible to avail a maximum of 5% of ITC in respect of invoices/debit notes which are available with the purchaser but not reported by the supplier in the GST returns reflecting their outward supplies and as a result not reflecting in GST portal of the purchaser.
As we know, Form GSTR-2B is static, so this can be used for availing the total amount of ITC reflecting in this statement while filing GSTR 3B, and then there is no need to use GSTR 2A. Additionally, the GST portal of the purchaser is auto-populating figures of ITC in the GSTR-3B from GSTR-2B. However, it is essential to note here that the Board / Government did not clarify this issue.
At AJSH, we assist our clients with various GST matters (GST registration, GST advisory, GST assessments, filings of GST returns, claiming GST audit) by providing them with adequate support and guidance from our end. If you have any questions or would like to know more about the role GSTR-2A and GSTR-2B while filing GSTR-3B, kindly contact us..
