GSTR 2B: What it is and everything you need to know

In the complex landscape of Goods and Services Tax (GST) filing, understanding GSTR 2B is crucial for businesses striving for compliance and efficiency.
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2 min read
04 September 2024

In the world of GST filing, it is important to keep yourself updated on all the recent changes and trends. One of these recent changes is the introduction of GSTR 2B. This article will provide you with all the necessary information about GSTR 2B, including what it is, its importance, and how to file it on time.

What is GSTR 2B?

GSTR 2B is a document that lists all the purchases made by a registered person from a particular GST number in the form of an input tax credit (ITC). It is an auto-generated document generated by the GSTN portal, intended to ease the reconciliation process. It is akin to the GSTR-2A form, based on which the buyer can claim an input tax credit. In short, GSTR 2B provides the buyer with an overview of the total purchases as recorded in GSTR-1 and GSTR-5A. This document is generated on the 13th day of every month for the previous month.

Why is GSTR 2B important?

GSTR 2B holds significance for buyers as it provides them with a consolidated overview of all their purchases. This consolidated view aids buyers in reconciling their purchase data and recovering any overlooked Input Tax Credit (ITC). Additionally, this document supports buyers in maintaining accurate accounting records and a comprehensive record of their GST purchases.

Another important point is that the GSTR 2B document provides information about the credit availability of a buyer at an early stage. This information ensures that buyers can take the necessary steps in time to maximise their benefits and avoid any GST-related penalties.

Features of GSTR-2B

  1. Comprehensive ITC summary: GSTR-2B provides a detailed monthly summary of a taxpayer's input tax credit (ITC).
  2. Supplier invoice details: It includes information on supplier invoices, allowing businesses to track and verify transactions easily.
  3. Credit note documentation: GSTR-2B covers credit notes, offering a complete picture of adjustments and ensuring accurate reconciliation.
  4. User-friendly interface: The return is designed with a user-friendly interface, enhancing ease of use for taxpayers.
  5. Simplified compliance: GSTR-2B streamlines the compliance process, making it more straightforward for businesses to meet regulatory requirements.
  6. Efficient reconciliation: Businesses can efficiently reconcile their input tax credits, ensuring accuracy and financial integrity.

How is GSTR 2B generated?

The process of generating GSTR 2B involves the following detailed steps:

  1. Vendor files GSTR 1: The supplier submits GSTR 1, detailing outward supplies.
  2. Auto population of data: The details from GSTR 1 are auto populated into the recipient's GSTR 2B.
  3. GSTR 3B submission: When the supplier files GSTR 3B, GST liability and ITCs are updated in GSTR 2B.
  4. GSTR 2B generation: The recipient can access the generated GSTR 2B on their GST portal.
  5. Reconciliation: Any discrepancies between the recipient's returns and the supplier's invoices must be reconciled in GSTR 2B.
  6. Filing GSTR 2B: After reconciliation, the recipient can file GSTR 2B by selecting the 'File' option on the portal.

GSTR-2A vs GSTR-2B

GSTR-2A and GSTR-2B are both components of the Goods and Services Tax (GST) system, but they serve distinct purposes.

Aspect

GSTR-2A

GSTR-2B

Nature

Auto-generated statement available to recipients

Provisional input tax credit (ITC) statement based on vendor's GSTR-1

Source

Derived from suppliers' GSTR-1

Auto-drafted from suppliers' GSTR-1

Timing

Updated periodically, often monthly

Updated continuously, available in real-time

Basis for ITC

Reflects all invoices uploaded by suppliers

Reflects invoices uploaded by suppliers up to the date of viewing

Reconciliation

Requires manual reconciliation with purchase records

Facilitates automated reconciliation with GSTR-2A

Finality

Does not constitute a final ITC statement

Provides a reliable estimate of eligible ITC

Role

Helps in verifying ITC claimed by recipient

Aids in assessing provisional ITC eligibility

Compliance Ease

Requires regular monitoring and reconciliation

Simplifies ITC reconciliation and compliance

 

How to access GSTR-2B on the GST portal?

To access GSTR-2B on the GST portal, follow these steps:

  1. Log in to the GST portal using your credentials.
  2. Navigate to the ‘Returns Dashboard’ after logging in.
  3. Select the relevant tax period by choosing the month and financial year.
  4. On the ‘GSTR-2B’ tile, you have two options: click on ‘View’ to check the details online or ‘Download’ to save the information offline.
  5. If you choose to download and the document count exceeds 1,000, you can either use the advanced search option or download the data in Excel/JSON format.
  6. If you prefer to view, GSTR-2B will display two tabs: Summary and All Tables. The Summary tab is divided into Part A (ITC Available) and Part B (ITC Not Available). The All Tables tab provides ITC information in detail, sortable by various categories.

Finally, take appropriate action based on whether you intend to view or download the data. This process ensures you can effectively manage your ITC claims by reviewing the detailed information available in GSTR-2B.

What are the steps to download GSTR 2B?

To download GSTR 2B, follow these steps:

  1. Log in to the GST portal using your credentials.
  2. Navigate to Services > Returns > Returns Dashboard.
  3. Choose the financial year and return filing period from the dropdown menu.
  4. Select View or Download to access Form GSTR 2B.
    • If you choose Download, you can select either JSON or Excel format. The Excel file will have multiple sheets detailing different parts of the form.
    •  If you choose View, you can see the auto-drafted ITC statement in Summary or All Tables formats.
  5. In the Summary tab, you'll find ITC details split into ITC available and ITC not available sections.
  6. To view or download the ITC details, click Download GSTR 2B Summary (PDF) or Download GSTR 2B details (Excel).
  7. For document-specific details, use the All Tables tab, where you can view specific inward supplies, amendments, or credit/debit notes by selecting the appropriate table from the dropdown.

You can also click on individual invoice numbers to view detailed tax information or expand sections for a comprehensive view.

How to file GSTR 2B?

The filing procedure of GSTR 2B is relatively straightforward and integrates with the usual GST filing process. As GSTR 2B is auto-generated on the portal, buyers can access it from their GST account. Once they have verified the document, they can claim the available ITC.

To file the GSTR 2B form, follow these simple steps:

  1. Log in to the GST portal and go to the "Return dashboard."
  2. Select FY, return filing period, and return filing type and click on the 'search' button.
  3. Go to the 'return' section and click on GSTR-2B.
  4. Verify the details provided in GSTR-2B, and click on the "File" button.
  5. Submit the return using an e-signature or through EVC (Electronic verification code).
  6. After submission, the GST portal will auto-populate the ITC in your electronic tax ledger if it finds everything in order.
  7. After this, make payment of the remaining tax, if any.

GSTR 2B is an essential document in the GST filing process, providing buyers with a consolidated view of their purchases. The document helps in reconciling purchase data, claiming missed ITC and maintaining accounting records. Moreover, GSTR 2B helps in early planning to maximise benefits and avoid penalties. By understanding the importance and filing procedure for GSTR 2B, you can stay on top of your filing obligations and simplify the reconciliation process.

When was GSTR-2B made available?

GSTR-2B was made available to taxpayers from 12th August 2020. The GSTR-2B is an auto-drafted input tax credit (ITC) statement that provides a summary of the ITC available to a taxpayer based on the GSTR-1 and GSTR-3B returns filed by his/her suppliers. It helps the taxpayer in reconciling their ITC on a regular basis.

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Frequently asked questions

When is GSTR 2B applicable?

GSTR-2B is a monthly auto-drafted return for businesses that are registered under the Goods and Services Tax (GST) Act. It shows the input tax credit that a business is eligible to take based on the supplier’s invoice. The GSTR-2B return is automatically generated on the 12th of every month for businesses that have filed their GSTR-1 and GSTR-3B for the previous month.

Is GSTR 2B mandatory?

No, GSTR 2B is not a mandatory return. It is an auto-drafted return generated for businesses registered under the Goods and Services Tax (GST) Act and is intended to provide businesses with information on the input tax credit available based on the supplier's invoice. However, it is recommended that businesses monitor their GSTR 2B to ensure proper utilisation of the input tax credit.

What is the relationship between GSTR 2B and GSTR 3B?

GSTR 2B is a monthly return generated for businesses registered under the Goods and Services Tax (GST) Act, which shows the input tax credit available based on the supplier's invoice. GSTR 3B is a monthly summary return filed by businesses, showing the total sales, purchases, input tax credit claimed, and tax liability. GSTR 2B data is used to calculate the input tax credit to be claimed in GSTR 3B.

Why is there a difference between GSTR-2A and 2B?

There is a difference between GSTR-2A and 2B because they serve different purposes. GSTR-2A is an auto-generated input tax credit (ITC) statement that contains details of purchase-related transactions uploaded by the suppliers in their respective GSTR-1 forms. It shows the Recorded ITC based on the supplier's returns. Whereas, GSTR-2B provides the taxpayers their Eligible ITC taking into consideration the credit available on invoices and debit notes received by the recipient, which is updated at mid-month and month-end intervals.

Is GSTR 2B for sale or purchase?

GSTR 2B is a summary statement for purchases. It provides a static view of the input tax credit (ITC) available for a specific period based on the invoices uploaded by suppliers. Therefore, it is related to purchases and the corresponding ITC claims.

Is GSTR 2B suspended?

No, GSTR 2B is not suspended. The form that was suspended is GSTR 2, not GSTR 2B. GSTR 2B is still in use and serves as a summary statement for ITC, whereas GSTR 2, which was meant for reporting purchase details, has been suspended since September 2017.

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