February 23, 2023

New rules for Inward/Outward Supplies, GST Returns New form GSTR 2B

As India is adapting to GST, it is constantly making changes to its rules and forms. Recently, the government has introduced new rules for Inward/Outward Supplies, GST Returns  New form GSTR 2B.

What is GSTR 2B?

GSTR 2B is a new form that has been introduced to facilitate the reconciliation of the Input Tax Credit (ITC) which is claimed in the GSTR 3B form. The GSTR 2B form will automatically fetch data from the GSTR 1 and GSTR 5 filed by the suppliers of the particular business.

The GSTR 2B form contains the details of the following:

1. Inward supplies from registered persons,

2. Inward supplies from a person with a unique identification number (UIN),

3. Inward supplies from a composition dealer,

4. Inward supplies from suppliers under the reverse charge mechanism, and

5. Credit/debit notes received and their amendments thereof.

New Rules for Inward/Outward Supplies

The government has introduced new rules for Inward/Outward Supplies (also known as ISD Rules). According to these rules, an Input Service Distributor (ISD) should furnish the details of the invoices for the services which are being distributed by him in a specified format by the 13th of every month. Moreover, the ISD should also ensure that the details of the invoices and the credit or debit notes that have been issued to him during the previous month have been accurately reported in GSTR 6.

In addition, the ISD should also ensure that the credit which has been distributed is matched with the debit which is available to the recipient. If any discrepancy is found, then the same should be communicated to the recipients in GSTR 6. The ISD should also ensure that the details of the invoice which have been furnished by him have been uploaded by the supplier in GSTR 1.

New Rules for GST Returns

The government has also introduced new rules for GST returns. According to these rules, a registered person who has furnished GSTR 1 or GSTR 3B using the electronic verification code (EVC), will no longer be required to furnish a physical copy of the same. This will reduce the compliance cost for such taxpayers.

In addition, a registered person who is a special category of taxpayer (like a non-resident taxable person, a person who is required to deduct or collect tax at source, and a person who supplies goods or services through an e-commerce operator) will not be able to furnish GSTR 3B or GSTR 1 using the EVC. They will be required to use the digital signature certificate (DSC) for the same.


The government is constantly adapting to the changing scenario and making amendments to the GST rules and forms. The introduction of the GSTR 2B form, new ISD rules, and the new rules for GST returns will help in the smooth functioning of the GST system and will reduce the compliance cost for the taxpayers.

It is important for business owners and startup founders to keep themselves updated with the latest changes in the GST regime to avoid any penalties or legal issues.


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