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Published on:

September 2, 2024

Shaaransh Sharma

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Basics of GST

GSTR 2A vs. GSTR 2B: Understanding the Key Differences

If you are a business operating in India, dealing with the Goods and Services Tax (GST) system among many other forms or reports can be quite daunting. Two of the most talked-about GST reports are GSTR 2A and GSTR 2B because both relate to ITC claims, but there are some differences between both which every business should know for proper compliance and tax planning. However, in this article, we will introduce you to the difference between GSTR 2A and GSTR 2B return, take an overview of them, their due dates & how they can be of use effectively.

What is GSTR 2A?

GSTR 2A is an automatically populated statement detailing all of the inward supplies made to a business during any given month. Dynamic Report: It is an animated report, and the data point in this statement is about live information received from his/her suppliers. For instance, when a supplier submits his GSTR-1 or GSTR-5 return and gives information regarding the sale made to a taxpayer then this data gets auto-populated authenticating it with sales in your taxpayers's form, GSTR 2A

This is particularly handy for GSTR 2 purposes as the document keeps getting updated throughout the month when suppliers are filing their returns. This dynamic availability of GSTR 2A plays an imperative role in tracking the purchases and their corresponding ITC that a business should be aware of at regular intervals. Reconciliation with the business is also an important factor as it rules out any discrepancies that could otherwise lead to errors in tax returns.

Speaking of GSTR-1, you might also be interested in our other blog that covers Errors & Mistakes during GSTR-1 Filings.

GSTR 2A Due Date

GSTR 2A due date — Since it is an automatically generated document, there isn't a specific due date for GSTR 2A. GSTR 2A is a dynamic document, meaning it can be continuously extracted by businesses throughout the month since every time their supplier uploads its return data to GSTR 1. Since it is a reflection of the current transactions, businesses must check GSTR 2A at regular intervals during the month to avoid missing any ITC-related compliance requirements.

Regular GSTR 2A access is what makes it such a good tool for tracking and reconciling ITC especially when you have high business transaction volume. It guarantees companies remain ahead to catch without any hassles arising out of non-uploading of returns by suppliers in time or whenever there are some mistakes related to data.

What is GSTR 2B?

This report is released on the 14th of every month, giving details ITC available to the taxpayer regarding purchases made for each tax period i.e., from the 12th day prior month till eleven days into the current month.

This is where the distinction between GSTR 2A and GSTR 2B becomes particularly evident: while the former shows a dynamic list of ITCs to be claimed, the latter provides a static snapshot for eligible businesses at one point in time that can help firms finalize their ITC claims before actual filing/locking of GSTR-3B returns.

GSTR 2B Due Date

The GSTR 2B is made available to the taxpayer on a monthly basis by the 14th of the succeeding month. Data in this report cover transactions from the 12th of one month to the 11th of another—e.g., data for August is collected on September 12. While GSTR 2A updates itself, you have to generate (and thus download) a new copy of GSTR 2B each time it changes. That being said, the snapshot view only offers a fixed reflection of ITC exposure that would be available to taxpayers as of date.

With this, the businesses can also download and check their GSTR 2B report to claim all eligible ITC before filing the GSTR-3B return carried out by them. As this report is a snapshot, it provides a better look at the ITC shown on which businesses need not be burdened about once their return is finalised.

Key Differences Between GSTR 2A and GSTR 2B

What are GSTR 2A & GSTR 2B: Difference between GSTR-2/1 and GST RET Get to know all about new returns filing in India with margin difference. Here are some common differences

Dynamic vs. Static

One of the key differences is that GSTR 2A is a live report which updates in real time based on supplier filings. On the other hand, GSTR 2B is a monthly static summary for ITC and will remain fixed on the date of generation.

Purpose

GSTR 2A is mainly to be used for checking and reconciliation of input tax credits on a regular basis during the month. It is a good way for businesses who want to reconcile their records with other parties that may have filed data.

On the other hand, GSTR 2B is used as a litigation checker for finalizing ITC claims and filing the GST-3 return. The real-time and static nature of the dashboard provides a view that is up-to-date and stable, making effective ITC claims possible for businesses.

Data Source

Both GSTR 2A and GSTR 2B derive their data from the returns filed by suppliers, such as GSTR-1, GSTR-5, and GSTR-6. However, GSTR 2A is updated continuously as these returns are filed, while GSTR 2B includes data from a specific period (the 12th of the previous month to the 11th of the current month).

Reconciliation

ITC reconciliation is done continuously throughout the month through GSTR 2A. This makes it possible for businesses to reconcile their purchase data against the filings of suppliers and rectify any mismatches. While GSTR 2B is a static document, It will not be used on an ongoing basis for reconciliation but is critical before filing returns as input claims would depend on those in the GSTN.

ITC Accuracy

GSTR 2A reflects the purchases as entered by your suppliers, but it is updated in real-time so on many occasions you may find some discrepancies because not all of them would have filed their returns till then. Unlike GSTR 2B, which provides ITC as per the specific period only thus giving a more accurate picture of it, and enabling businesses to finalize their claims with certainty.

Here’s a table of comparison for better understanding.

Aspect	GSTR 2A	GSTR 2B
Nature	It's dynamic! GSTR 2A updates continuously as your suppliers file their returns.	GSTR 2B is static. It’s generated once a month and doesn’t change afterward.
Purpose	Ideal for ongoing monitoring and reconciling your ITC throughout the month.	Perfect for finalizing your ITC claims before filing your GSTR-3B.
Updates	Updates in real-time—so you can check it any time for the latest data.	No updates after it’s generated on the 14th of every month.
Data Coverage	Captures real-time data from supplier filings, helping you stay up-to-date.	Offers a snapshot of transactions from the 12th of the previous month to the 11th of the current month.
Reconciliation	Great for tracking your supplier data and ensuring everything matches up before the month ends.	Helps you double-check and finalize everything before filing returns, without worrying about further updates.

How to Download GSTR 2A?

Visit here to understand a step-by-step guide on How GSTR-2A should be downloaded from GST Portal. Here’s a step-by-step guide:

Log in to the GST portal using your credentials.
Navigate to the ‘Returns Dashboard’ under the ‘Services’ tab.
Select the financial year and the relevant return period for which you want to view the GSTR 2A.
Click on the ‘GSTR 2A’ option from the list of available returns.
You can view and download the GSTR 2A statement in PDF or Excel format for easy reconciliation.

Downloading and review of GSTR 2A regularly make sure that all the inward supplies being made by your suppliers, and the ITC corresponding to them are well in place. This helps to detect any mismatches in time and fix them before the final return filing occurs.

How to Download GSTR 2B?

GSTR 2B can be downloaded from the GST portal like GSTR 2A The process is as follows:

Log in to the GST portal using your credentials.
Go to the ‘Returns Dashboard’ under the ‘Services’ tab.

Choose the appropriate financial year and month for which you want to download the GSTR 2B statement.
Select ‘GSTR 2B’ from the list of options.

Download the report in PDF or Excel format for your records and use it to finalize your ITC claims.

Being a static document, GSTR 2B is reliable for the finalization of the ITC claim. Businesses should always remember to verify and save their GSTR 2B, before filing the return of form duly known as GSTR-3B.

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Importance of Regular Monitoring for Compliance

To be able to comply with GST laws more effectively, one of the most important methods is to stay updated on your GSTR 2A and GSTR 2B reports. Reviewing GSTR 2A every month not only helps businesses to analyze that inward supplies have been recorded properly but also allows furnishing any discrepancies in the ITC claims at regular intervals.

On the other hand, GSTR 2B gives a static snapshot of available ITC which can be periodically used to determine the nature and manner of filing before finalizing the return.

To reduce this confusion and expedite the process at reconciliation time during filing, one must understand well enough the difference between GSTR 2A and 2B. The companies that successfully use both of these two reports are at less risk and remain compliant with the rules, hence face no trouble or avoid penalties from the GST Department regarding their filings.

GSTR-1, GSTR-2, GSTR-5 - these topics might seem very complicated to understand. Business owners might not even be able to manage the time to comply with such laws. For all such problems, Swipe is the one-stop solution for all GST-related problems.

Conclusion

In summary, being aware of the distinction between GSTR 2A and GSTR 2B is very necessary for GST filing in order to maximize ITC and stay diligent. GSTR 2B will give companies a growth view to assist in determining ITC, while GSTR 2A will offer an approximate and constantly changing image all through the month. Consistent monitoring of both reports allows for better reconciliation, which in turn helps avoid errors and decreases the likelihood of penalties. More importantly, firms nowadays must prepare for the Mismatch Report and CPs, which are largely based on this material. It is pretty obvious that these values will pay.