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GSTR 2 Form

What is GSTR 2 ? How to file GSTR 2 Form?

GSTR 2 Form

 GSTR 2 Form is a “Return for Inward Supplies” that is to be filed by every registered taxable person.  The entries should be mentioned from the 12th to the 15th of the succeeding month. If there are any adjustments they are allowed in GSTR 1A on the 16th and 17th of the succeeding month once the buyer has uploaded his GSTR 2 Form.

The government notified new GST Return formats in this regard and removed the mandatory requirements to quote the HSN for the goods and SAC Codes for services in each table.  To ease the process and simplify the compliances for the taxpayers’ under the Goods and Services Tax the GST Return.

GSTR 2 has 13 headings, the taxable person does not have to worry as most of these will be prefilled. But here we need to understand certain terms:

GSTIN-  Goods and Services Taxpayer Identification Number.

UIN – Unique Identification Number

UQC– Unique Quantity Code.

HSN- A harmonized system of nomenclature

SAC- Services Accounting Code

POS-  Place of supply of the Goods  and Services

B2B– From one registered person to another registered person.

B2C- From one registered person to another registered person

GSTR 2 Form refers to the monthly tax returns that show the purchases that a person registered under GST has made during a particular month. After the individual purchases from other registered vendors, the information will be filed in the GSTR 1 Form which will be automatically made available in the GSTR 2 A Form and the same will be used while filing the returns in GSTR 2.  The vendor from whom the purchase is made or to whom the goods are sold will be then notified and subsequently given a chance to make amendments with the help of GSTR 1 A Form. 

Who should file? (Eligibility) 

An individual or business registered under GST needs to file the GSTR 2 for their purchases. But there are some exceptions to this rule. The following entities are not required to file the GSTR 2 returns.

  • Dealers under Composition scheme.
  • Input service distributors
  • Non Resident taxable entities
  • An individual that collects TCS
  • Entities that deduct the TDS
  • Online Information and Database access or the retrieval services.

It is necessary to keep a detailed account of all the invoices for all the transactions that include the transactions relevant to the non-GST supplies. Also during the return filing process, it is necessary to furnish the GSTIN and confirm the identity via OTP on your registered number or Aadhar.

Pre-requisites of Filing

Here are the pre -requisites for an individual to meet a certain set of criteria and set of documents.=

  • The person has to be a registered taxpayer with the GST council and needs to have a 15 digit PAN-based GSTIN.
  • The taxpayer should not be registered under the Composition scheme nor be in the possession of a Unique Identification Number. Also, the taxpayer is not required to be one of the Non-resident foreign taxpayers with GST.
  • You will be able to see the data in the GST portal once it is extracted from GSTR 2A.  To cross verify this particular piece of data they need to have detailed invoices for all the transactions on the person.   This includes data that is about the intra-state, interstate, business-to-business as well as retail purchases transactions that are associated with the supplies that are exempted or categorized as non-GST goods.
  • An OTP will be sent for verification which can be done using the electronic verification code or the DSC.  GST returns can be filed using Aadhar based e-sign.

How to file GSTR 2 Form ?

Here are the details to be filled out in the GSTR 2 format:

  1. Taxpayer’s Name
  2. GSTIN
  3. Details of the inward supplies  other than supplies that attract reverse charge
  4. Details about the purchased goods that attract a reverse change.
  5. Capital goods and inputs that are received from the SEZ units or the overseas on entry bill.
  6. Amendments to the details of Inward supplies that are supplied in the returns for the earlier period of taxation.
  7. Supplies that are availed from a composite taxable person, received GST supplies that are exempt or Nil rated and the non-GST Supplies.
  8. ITC received from the registered input service distributor
  9. Details on TDS and TCS receive such as from the e-commerce platform.
  10. A consolidated statement that has all the details paid and adjusted on account of the receipt of supply.
  11. Details about any reversal or the reclaims of the input tax credits,
  12. Details on reduction or addition of the sum in output tax in case of the mismatch or other cases.
  13. HSN wise summary of the goods purchased as the inward supplies. HSN  is the Harmonized System of Nomenclature – used for the systematic classification of goods.