GSTN Advisory on Form GSTR-2B
GSTN Advisory on Form GSTR-2B
The Goods and Service Network (GSTN) on 18th October 2021 has issued an advisory on Form GSTR-2B which is an auto-drafted ITC statement, generated for every normal taxpayer based on the information furnished by their suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor).
This statement indicates the availability and non-availability of input tax credit to the taxpayer against each document filed by their suppliers and is made available to the taxpayers on the afternoon of the 14th of every month.
GSTR-2B – Auto-drafted ITC Statement
GSTR-2B is a static month-wise auto-drafted statement for regular taxpayers (whether or not opted into the QRMP scheme) introduced on the GST portal. The statement was launched from the August 2020 tax period onwards.
The statement indicates the availability and non-availability of input tax credit to the taxpayer against each document filed by his suppliers.
Prescribed Date for GSTR-2B Generation
As mentioned above, The process of GSTR-2B generation starts after the ending of the Invoice Furnishing Facility, GSTR-5(by supplier), and GSTR-6(by ISD) the due date on 13th midnight, and therefore GSTR-2B can be made available to the taxpayer in the afternoon of 14th of the month.
- GSTR-2B is a static statement and is made available for each month on the 14 the day of the succeeding month
- The details filed in Form GSTR-1 & 5 and Form GSTR-6 would reflect in the next open Form GSTR-2B of the recipient irrespective of supplier’s/ISD’s date of filing.
Inputs of GSTR-2B
- All the B2B information/documents filed by suppliers in their monthly or quarterly GSTR-1, IFF, and GSTR-5 filed by NRTP taxpayers
- Information filed by ISD taxpayers in their GSTR-6
- Information of ITC of IGST paid on import of goods filed in ICEGATE
Cut-off Dates for GSTR-2B generation
Cut-off dates for GSTR-2B generation are based on due dates of GSTR-1, GSTR-5, and GSTR-6 as given below:
Cut-off dates for monthly GSTR-1 filers
For monthly GSTR-1 filers, any GSTR-1 filed between the due date of furnishing for the previous month (M-1) to the due date of furnishing of GSTR-1 for the current month (M).
For example, GSTR-2B generated for Jan 2021 contains the details of all the documents filed by suppliers in their monthly GSTR-1 from 00:00 hours on 12th Jan 2020 to 23:59 hours on 11th Feb 2020.
Cut-off dates quarterly GSTR-1/IFF, GSTR-5, and 6 filers
For quarterly GSTR-1/IFF, GSTR-5, and 6 filers, any IFF/GSTR-1/5 and GSTR-6 filed between the due dates for the previous month (M-1) to the due date of furnishing for the current month (M).
For example, GSTR-2B generated for Jan 2021 contains the details of all the documents filed by suppliers in their quarterly GSTR-1/IFF, GSTR-5, and 6 from 00:00 hours on 14th January 2021 to 23:59 hours on 13th February 2021.
Note: The documents furnished by the supplier in any GSTR-1/IFF, GSTR-5, and 6 would reflect in the next open GSTR-2B of the recipient irrespective of the date of issuance of the concerned document
Details of IGST Imports in GSTR-2B
GSTR-2B also contains information on the import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / Developers.
In case any Bill of entry is not being reflected in the GSTR-2B, then the taxpayer can fetch the missing records from ICEGATE by a self-service functionality provided by GSTN
Reverse charge Credit on Import of Services
The reverse charge credit on import of services is not a part of the GSTR-2B statement and will be continued to be entered by taxpayers in Table 4(A)(2) of FORM GSTR-3B. However, the reverse charge on the import of goods is auto-populated from ICEGATE.
Details Available in Form GSTR-2B
Form GSTR-2B summary is bifurcated into the following two summaries:
- ITC Available: A summary of ITC is available as on the date of its generation and is divided into credit that can be availed and credit that is to be reversed (Table 3)
- ITC not Available: A summary of ITC not available and is divided into ITC not available and ITC reversal
ITC Available Summary
ITC Available Summary is captured in Table-3 of GSTR-2B which shows the ITC available as on the date of generation of FORM GSTR-2B. It is divided into the following parts:
- Part A captures the summary of credit that may be availed in relevant tables of FORM GSTR-3B.
- Part B captures the summary of credit that shall be reversed in the relevant table of FORM GSTR-3B.
ITC not Available Summary
ITC not-available summary is captured in Table 4 of GSTR-2B which shows the summary of ITC not available as on the date of generation of FORM GSTR-2B, under the specific scenarios.
Credit reflected in this table shall not be entered in Table 4(A) of FORM GSTR-3B. Credit shown as “ITC Not available” in Table 4, Part A covers the following scenarios only:
- Invoice or debit note for the supply of goods or services or both where the recipient is not entitled to an input tax credit as per the provisions of sub-section (4) of Section 16 of CGST Act, 2017.
- Invoice or debit note where the Supplier (GSTIN) and place of supply are in the same State while the recipient is in another State. However, there may be other scenarios for which Input Tax Credit may not be available to the taxpayers as per other legal provisions.
Taxpayers are advised to exercise caution and self-assess & reverse such credit in their FORM GSTR-3B.
Important Announcement to Taxpayer
Taxpayers are advised to ensure that the data generated in Form GSTR-2B is reconciled with their records and books of accounts. Taxpayers must ensure that
- No credit is availed twice for any document under any circumstances.
- Credit is reversed as per GST Act and Rules in their Form GSTR-3B.
- Tax on a reverse charge basis is paid.