Difference between GSTR-2A and GSTR-2B

Difference between GSTR-2A and GSTR-2B

Difference between GSTR-2A and GSTR-2B

Recently, under Goods and Services Tax, the following two types of auto-populated returns/ statements are introduced-

  1. Form GSTR-2A– Details of auto drafted supplies
  2. Form GSTR-2B– Auto drafted ITC statement

Interestingly, both the above-referred statement reflects details of inward supplies as well as details of an input tax credit. Since both the statements cover the same details, it is important to understand the distinction between the same.

The present article briefly distinguishes both the Form GSTR-2A and GSTR-2B and also provides guides as to which statement should be taken as a base for an input tax credit.

Basics of Form GSTR-2A and Form GSTR-2B

Before understanding the differences, it is first important to understand the basics of both the Form GSTR-2A and Form GSTR-2B-

Form GSTR-2A-

  • Form GSTR-2A is a system-generated (auto-populated) return reflecting inward supplies (purchase-related transactions).
  • Form GSTR-2A gets auto-generated based on the details/ information furnished by supplier/ seller/ counterparty vide following returns-
    • Form GSTR-1 – return to be filed by a normal registered person.
    • Form GSTR-5 – return to be filed by a non-resident.
    • Form GSTR-6 – return to be filed by an input service distributor.
    • Form GSTR-7 – return to be filed by tax deductor.
    • Form GSTR-8 – return to be filed by an e-commerce operator liable to collect the tax.
  • It also covers the details of import of goods as well as an inward supply of goods from SEZ units/ developers.

Form GSTR-2B-

  • Form GSTR-2B is a system-generated (auto-populated) statement reflecting input tax credit details.
  • The statement gets auto-generated on the 12th of the succeeding month.
  • The details, in Form GSTR-2B, are auto-populated on the basis of the following returns furnished by the suppliers/ seller-
    • Form GSTR-1;
    • Form GSTR-5;
    • Form GSTR-6; and
    • Import data as received from ICEGATE.

Distinction between Form GSTR-2A and Form GSTR-2B

Even though both the Form GSTR-2A and GSTR-2B reflects similar details, both the forms are different in various ways. The difference between both the forms is summarized hereunder-

  1. Type of statement-

Form GSTR-2A is a form of a dynamic statement. The details of inward supplies vis-à-vis input tax credit will be updated on a continuous basis.

On the other hand, Form GSTR-2B is a form of a static statement. The details will be updated on a constant basis.

  1. The basis for reflection of details-

In the case of Form GSTR-2A, the details of the inward supplies will be reflected in the statement on a real-time basis.

In order words, the details will be updated as and when the supplier furnishes the details of outward supplies either in Form GSTR-1 or via using Invoice Furnishing Facility (i.e. IFF).

For example, the registered person while filing Form GSTR-1 for the month of January 2021 has failed to declare some supplies. The missed supplies were reflected by the registered person while filing Form GSTR-1 for the month of February 2021. Correspondingly, the details of such missed supplies will be reflected in Form GSTR-2A in the month of February 2021.

However, in the case of Form GSTR-2B, the details of inward supplies will be reflected in a static manner. It will reflect the details of outward supplies reflected by the supplier between two due dates of either Form GSTR-1 or Invoice Furnishing Facility.

For example, suppose the registered person furnishes the details of outward supplies for the month of January 2021 after the due date. In such a case, the corresponding details of inward supplies and the input tax credit will not be reflected in Form GSTR-2B in the month of January 2021.

  1. Bifurcation of eligible and ineligible Input Tax Credit-

Form GSTR-2A doesn’t provide bifurcation of eligible input tax credit and ineligible input tax credit. Whereas, Form GSTR-2B briefly bifurcates the eligible and ineligible input tax credit.

  1. Data source-

Form GSTR-2A collects/ complies data on the basis of returns filed by the supplier in Form GSTR-1; Form GSTR-5; Form GSTR-6; Form GSTR-7 and Form GSTR-8.

Whereas, Form GSTR-2B complies data from Form GSTR-1; Form GSTR-5 and Form GSTR-6 filed by the supplier.

Basis for an input tax credit

As per provisions of rule 36(4) of the Central Goods and Services Tax Rules, 2017, the registered person will be eligible to avail a maximum up to 5% of an input tax credit in respect of invoices/ debit notes which are not reflected by the supplier either in Form GSTR-1 or invoice furnishing facility.

Here, the question would definitely arise whether to take Form GSTR-2A or Form GSTR-2B as the base in order to fulfil provisions of above rule 36(4).

As seen above, Form GSTR-2B is static and hence the same can be taken as a base. Notably, currently, the GST system is auto-reflecting figures of an input tax credit in Form GSTR-3B as per Form GSTR-2B. However, it is important to note here that the board/ government has not come up with any of the clarification in the matter.

 

Post by poonamgandhi

CA Poonam Gandhi is a Chartered Accountant and a Lawyer. With a wide practice experience and deep understanding of different laws and taxes, she has been an independent professional writer in the field of taxation, finance and laws.