GSTR 2B, also known as ‘Goods & Service Tax Return 2B,’ is a document issued by the Goods and Services Tax Network (GSTN). It contains comprehensive information regarding the goods and services acquired from registered suppliers. This form holds significant importance for businesses as it aids in aligning their purchase records with their vendors.
GSTR 2B is pivotal in helping businesses keep tabs on their GST liabilities, input tax credits, and compare them with their purchase particulars. It dramatically assists businesses in adhering to GST regulations and rules by offering insights into the total value of supplies received from registered vendors. The GSTR 2B reconciliation process enables companies to identify any discrepancies between their records of incoming supplies and vendor invoices.
Read on to learn more about what is GSTR 2B in detail below.
Introduction to GSTR-2B
In GSTR-2B, like GSTR-2A, the monthly eligible and ineligible Input Tax Credit (ITC) is provided; however, it is not updated over time. To put it another way, the information in a GSTR-2B for a given month stays the same whenever viewed on the GST site and is not altered to reflect changes made by the taxpayer’s suppliers in the following months.
The GSTR-2B is accessible to all regular, SEZ, and infrequent taxpayers. It can be generated by each receiver using the GSTR-1, GSTR-5, and GSTR-6 that their suppliers have provided. The statement will display ITC eligibility data document-by-document in clear text. From the GSTR-1 filing date for the previous month (M-1) to the GSTR-1 filing date for the current month (M), ITC information will be covered.
What is the Main Objective of GSTR 2B?
Helping businesses reconcile the purchase ledger with vendors is the goal of GSTR 2B meaning. It assists in finding any discrepancies between information given by registered suppliers and information located on the firm’s tax filings. This form is a crucial tool for companies to guarantee GST compliance and accurate returns. It also facilitates tracking input tax credits and GST liabilities and comparing purchase data and the overall amount of inbound supply.
Characteristics of the GSTR 2B
The following are the most noteworthy features of the GSTR-2B:
- As per GSTR 2B meaning, the form will specify the steps you must complete in each section for GSTR 3B and whether or not ITC is accessible under each heading.
- Document-specific data, such as invoices and credit and debit notes, are available for viewing or downloading. Additionally, you may discover the deadlines and rules for creating or using GSTR 2B.
- The ITC summary statement is available for viewing and downloading as an Excel or PDF file. You may even download it in pieces if you simply require details specific to a given part.
Advantages of GSTR 2B
- Filing of GSTR 3B is Made Easier
Minimizing the duration required for GSTR 3B filing and streamlining the overall process is of utmost importance.
- Reconciliation of GST (Goods and Services Tax)
The term “reconciliation” pertains to maintaining records of all transactions that took place within a designated timeframe. With the introduction of GSTR 2B, taxpayers now have the capability to align the data found in the automatically generated statement with their accounting records. Consequently, taxpayers can verify the reversal of credits and ensure that credits are not duplicated during this reconciliation process.
- Accuracy is Maximised
This statement minimizes the likelihood of errors, leading to greater accuracy in the information.
How Should You File the GSTR 2B?
To file GSTR 2B, you can proceed with the following steps:
- Sign in to the GST site and then access the section containing GSTR 2 meaning.
- Obtain or download the GSTR 2B form’s copy.
- Input all the details of inward supplies.
- Verify and rectify any disparities between vendor invoices and your company’s returns.
- Review GST liability, claimed Input Tax Credits (ITCs), and other information to ensure GST reconciliation and payment accuracy.
- Lastly, submit your GSTR-2B by selecting the ‘File’ option on the website. Once filed, it will display a confirmation message on the screen.
How to View & Download GSTR-2B From the GST Portal?
- Step 1: Visit the gst.gov website and log in by providing your username, password, and captcha.
- Step 2: Choose the “Services” tab, then select “Returns” and navigate to the “Returns Dashboard.” Click “File Returns” from there and select “GSTR 2B.”
- Step 3: Opt for the desired Financial Year, Quarter, and Period for viewing. Click the “Search” button and proceed to complete and submit the available consent form.
- Step 4: You will be given the option to either “View” or “Download” the document. Make your selection based on whether you prefer viewing or downloading it simply.
You have the option to either view or download the GSTR-2B form in Excel or JSON formats for future reference. Additionally, if the total number of documents is 1000 or fewer, you can download specific table-wise details from the statement. In cases with more records, you can download the entire file or utilize the advanced search option.
The GSTR 2B document holds substantial importance for businesses in India. It’s an automatically populated document that consolidates information from various filings made by your suppliers.
Creating GSTR-2B serves several crucial purposes. It helps you confirm the accuracy of your timely payments, prevents the accidental duplication of Input Tax Credits (ITCs), and aids in identifying invoices that your suppliers may not have uploaded.
Furthermore, it helps you spot discrepancies, such as missing invoices in your records or invoices with errors, enabling you to take corrective measures for enhanced efficiency and precision.
FAQs on GSTR 2B
1. Is it possible to modify the GSTR-2B?
As a taxpayer, you are unable to add documents or make any changes to Form GSTR-2B as it is a read-only static ITC statement.
2. Is GSTR-2B data utilised for auto-population purposes?
Yes. The government enabled the ability for GSTR-1 and GSTR-2B data to appear on your GSTR-3B form automatically. Your GSTR-2B return’s ITC data and ITC reversal information are automatically transferred to GSTR-3B.
3. Is it possible to submit GSTR-2B and ITC claims simultaneously?
The “Provisional ITC” programme, which allowed taxpayers to claim a 5% temporary ITC on eligible ITC, has been terminated by the government. Firms can no longer claim more ITC than permitted under the GSTR-2B declaration.
4. What distinguishes GSTR-2A from GSTR-2B?
Every time one of a taxpayer’s suppliers submits their GST return for outbound shipments, the dynamic statement known as GSTR-2A is modified. In contrast, the GSTR-2B is a static statement that only includes information on the input tax credit for a specific return period.