New
February 25, 2023
By
Pranjal Gupta

GSTR 2: Return Filing, Format, Eligibility  Rules

Introduction

GST has streamlined the tax filing process for businesses in India, and GSTR-2 is an essential part of it. GSTR-2 is a return that needs to be filed by businesses to report their purchases during the month. In this article, we will discuss the GST return filing process for GSTR-2. We will cover the format, eligibility, and rules for filing GSTR-2. We will also take a look at the contents of the form GSTR-2.

What is GSTR-2?

GSTR-2 is a monthly return that needs to be filed by registered taxpayers. The return contains details of all the purchases made by the taxpayer during the month. The data is used to calculate the Input Tax Credit (ITC) that can be claimed by the taxpayer. GSTR-2 is an important return as it helps the government to reconcile the data provided by the suppliers and the buyers.

Format of GSTR-2

GSTR-2 consists of 13 sections, and the format is as follows:

  1. GSTIN
  2. Legal Name of the Registered Person
  3. Period
  4. Details of Inward Supplies Received from Registered Taxable Persons
  5. Details of Inward Supplies Received from Unregistered Persons
  6. Import of Goods
  7. Details of Supplies made from Composition Taxable Person and Other Unregistered Suppliers
  8. Amendments to Details of Inward Supplies
  9. Amendments to Details of Inward Supplies from Unregistered Persons
  10. Amendments to Import of Goods
  11. Amendments to Supplies from Composition Taxable Person and Other Unregistered Suppliers
  12. TDS and TCS Credit Received
  13. Tax Liability Arising on Account of Reversal of Input Tax Credit

Eligibility for Filing GSTR-2

GSTR-2 needs to be filed by all registered taxpayers who have made purchases during the month. Even if there are no purchases, the return needs to be filed to report zero transactions. It is important to file the return on time to avoid penalties and interest.

Rules for Filing GSTR-2

Here are some rules that need to be followed while filing GSTR-2:

  • GSTR-2 needs to be filed by the 15th of the following month.
  • If there are any errors in the return, it can be rectified in GSTR-2A, which is a read-only return that is generated after GSTR-2 is filed.
  • Any amendments to the return need to be made in GSTR-2A.
  • The ITC can only be claimed if the supplier has filed GSTR-1 and the details have been reflected in GSTR-2.

Contents of the Form GSTR-2

Let's take a look at the contents of the form GSTR-2 in detail:

  1. GSTIN: This is the unique 15-digit Goods and Services Tax Identification Number that is assigned to every registered taxpayer.
  2. Legal Name of the Registered Person: This is the name of the registered person as mentioned in the GST registration certificate.
  3. Period: This is the month and year for which the return is being filed.
  4. Details of Inward Supplies Received from Registered Taxable Persons: This section contains details of all the purchases made from registered taxable persons during the month. The details include the GSTIN of the supplier, invoice number, and invoice date.
  5. Details of Inward Supplies Received from Unregistered Persons: This section contains details of all the purchases made from unregistered persons during the month. The details include the name and address of the supplier, invoice number, and invoice date.
  6. Import of Goods: This section contains details of all the goods imported during the month. The details include the Bill of Entry number, date, and value of the goods.
  7. Details of Supplies made from Composition Taxable Person and Other Unregistered Suppliers: This section contains details of all the supplies made by composition taxable persons and other unregistered suppliers during the month. The details include the name and address of the supplier, invoice number, and invoice date.
  8. Amendments to Details of Inward Supplies: This section is used to make amendments to the details of inward supplies that were reported in the previous month's return.
  9. Amendments to Details of Inward Supplies from Unregistered Persons: This section is used to make amendments to the details of inward supplies received from unregistered persons that were reported in the previous month's return.
  10. Amendments to Import of Goods: This section is used to make amendments to the details of the goods imported that were reported in the previous month's return.
  11. Amendments to Supplies from Composition Taxable Person and Other Unregistered Suppliers: This section is used to make amendments to the details of supplies made by composition taxable persons and other unregistered suppliers that were reported in the previous month's return.
  12. TDS and TCS Credit Received: This section contains details of the TDS and TCS credit received during the month.
  13. Tax Liability Arising on Account of Reversal of Input Tax Credit: This section contains details of the tax liability that arises on account of the reversal of the ITC that was claimed earlier.

Conclusion

GSTR-2 is a monthly return that needs to be filed by registered taxpayers to report their purchases during the month. The format of GSTR-2 consists of 13 sections, and the eligibility and rules for filing the return need to be followed strictly. By understanding the contents of the form GSTR-2, businesses can ensure that they file the return accurately and on time.

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