GSTR 2B: Complete Guide

GSTR-2B is an auto-drafted ITC statement prepared for every regular taxpayer based on the information provided by his suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person), and GSTR-6 returns (input service distributor). The statement specifies whether or not an input tax credit is available to the taxpayer for each document filed by his substitute.

Introduction to GSTR-2B

GSTR-2B, like GSTR-2A, offers eligible and ineligible Input Tax Credit (ITC) for each month but remains constant or unaltered for a time. In other words, anytime a GSTR-2B for a given month is viewed via the GST site, the data in it remains unchanged for future adjustments made by their suppliers in the following months.

All normal, SEZ, and casual taxpayers can use GSTR-2B. Every receiver can produce it using the GSTR-1, GSTR-5, and GSTR-6 forms provided by their suppliers.

The statement will clearly show document-wise details of ITC eligibility. ITC information will be covered from the filing date of GSTR-1 for the preceding month (M-1) up to the filing date of GSTR-1 for the current month (M)

For example, GSTR-2B prepared for July 2020 will include papers filed by their suppliers between 12 a.m. on July 12, 2020, and 11:59 p.m. on August 11, 2020. The July 2020 statement will be generated on August 12, 2020.

Reason for GSTR-2B

The data in GSTR-2B is presented in such a way that taxpayers may easily reconcile ITC with their own books of accounts and records. It will aid in the identification of documents and assure the following:

a. The input tax credit cannot be claimed more than once against the same document.

b. Wherever necessary, the tax credit is reversed in accordance with GST rules in their GSTR-3B.

c. GST is appropriately paid on a reverse charge basis for all eligible papers, including service imports.

d. The statement specifies which tables or columns of GSTR-3B must be used to claim the input tax credit on an invoice/debit note.

When was it made available?

GSTR-2B will be accessible beginning in August 2020. It might be created by recipient taxpayers once a month on the 12th of the month following the tax period until January 2021.

For example, GSTR 2B for August 2020 will be available on September 12, 2020.

Beginning in January 2021, taxpayers will be able to generate the GSTR-2B on or after the 14th of each month for a tax period.

For example, GSTR 2B for October 2021 will be available on November 14th, 2021.

The deadlines for GSTR-2B creation may be seen on the government portal under the 'View Advisory' page.

How to access it on the GST portal?

The following are the steps to access GSTR 2B, available from 12th August 2020:

1. Log in to the GST portal. A taxpayer must use his/her credentials to log in.

2. Navigate to the 'Returns Dashboard'

3. Select the relevant tax period. Select the month and financial year.

4. On the 'GSTR-2B' tile, you may either click on 'View' or 'Download' as per the need.

(a) Intend to download:

If the total number of documents in all tables of GSTR-2B exceeds 1,000, you can either use the advanced search option or download the document information in excel/JSON format from the GSTR-2B download page. Click the download button to go to the download page.

(b) Intend to view:

If the number of line items is less than 1,000, then you may use the 'View' option.

5. Take suitable action on the GSTR-2B based on the option chosen in Step 4.

(a) Intend to download:

If you plan to download, click on the button known as 'Generate Json File To Download' to check out the statement on Offline Matching Tool. Alternatively, click on the 'Generate Excel file to download' button to obtain the data in the excel file on your system.

(b) Intend to view:

GSTR-2B screen appears and has two tabs called Summary And All Tables.

The Summary tab is further classified into two parts:

Part A (ITC Available):

ITC summary value of credits available as on its generation date and is divided into credit that can be availed and credit that must be reversed (Table 3)

Part B (ITC not Available):

ITC summary value of credits not available and is classified into ITC unavailable and ITC reversal (Table 4)

You can fetch the documents by clicking on the hyperlinked text of B2B 'Invoices, B2B' Debit notes, B2B Invoices (Amendment), and B2B Debit notes (Amendment).

The All Tables tab will have the ITC information that can be sorted as per the tables of the GSTR-2B form such as B2B, B2BA, B2B CDNR, B2B CDNRA, ISD, ISDA, IMPG, and IMPGSEZ.

Further, ITC appears document-wise (document details) with filters to sort data as per your need. Further, you can filter data supplier-wise as well.

Contents of GSTR-2B

1. Summary statement showing 'ITC available' and 'ITC not available' for every section.

2. Advisory for every section clarifies the kind of action that taxpayers must take.

3. Document-wise details such as invoices, credit notes, debit notes, etc. to view and download along with amendments.

4. Cut-off dates and advisory for generating and using GSTR-2B.

5. Import of goods and import from SEZ units/developers (available from GSTR 2B of August 2020 onwards).

The form is classified into two categories:

ITC is available: PART-A of ITC Available comprises information on inward supplies, credit-debit notes (CDN), including amendments, and import of goods, which is separated into four sections: ITC for supplies from registered persons, ITC from ISD, ITC towards inward supplies on reverse charge and import of goods. Whereas, PART-B is ITC Reversal has one part called 'Others' that contains details of credit notes and amendments.

ITC is not available: PART-A of ITC Not Available has purchase invoice or CDN details, including any amendments, divided into three parts- All other ITC for supplies from registered persons, ITC from ISD and ITC towards inward supplies on reverse charge. Whereas, PART-B has CDN details and amendments under the 'Others' heading.

In the following cases, the input tax credit will be recorded as 'not available':

1. Where, under Section 16(4) of the CGST Act, the time restriction for claiming input tax credit on an invoice or debit note has elapsed (earlier of 30th September of the year following the financial year or date of filing annual returns).

2. The state of the supplier and place of supply is the same, whereas the recipient is located in another state.

3. When a purchaser is ineligible for Input Tax Credit in relation to an invoice or debit note issued for the delivery of goods or services, or both.