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written by | April 25, 2022

A Detailed Guide on GSTR-2B: Auto-Drafted ITC Statement

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Table of Content


The GSTR-2B form contains the auto-drafted ITC statement. It furnishes details on dedicated taxpayers every month. In August 2020, GSTR-2B was introduced with the key objective of making the entire process of filing returns more time-effective, enabling proper reconciliation and reducing the occurrence of mistakes. The suppliers present the facts in a very organised manner which helps taxpayers with the reconciliation of the input tax credit with the books of accounts of their organisations. Like all other forms created for filing returns, this statement is generated monthly.

The form contains details of whether the input tax credit is available to the assessed. The details are also forwarded via email and presented in a pdf format for the assessee to have no difficulty accessing the same. A very comprehensive advisory is available in the common portal regarding the GSTR-2B. Every taxpayer must go through the details of this advisory before using the statement generated on the 12th day of every month. Let us step into the world of GSTR-2B and get an insight into its various features.

Did you know?

Taxpayers can claim input credit only once against a specific document.

What is GSTR-2B?

The GSTR-2B is a statement of the input tax credit, popularly referred to as ITC. It is generated automatically on the 12th of each month. All casual taxpayers can access this on the official portal with ease. It eases the process of reconciliation for taxpayers with reference to the accounts maintained by them. It helps them identify all necessary certificates and the required documents so that input credit tax cannot be claimed again for the second time on any of them. Taxpayers can go through the details of the GSTR-2B form on the official government portal. The section titled ‘view advisory tab’ on the government portal also indicates the timeline of the GSTR-2B.

Also Read: GSTR 2 Application Process for Taxpayers - Filing, Format, Eligibility, and Rules

The Detailed Format of GSTR-2B

Given below are the details that are captured on the GSTR-2B form:

No.

Details

Information

1

Availability of ITC – B2B supply

All purchase details which have been made from registered suppliers who have uploaded their respective invoices in form GSTR-1 as well as its corresponding amendment.

2

Availability of ITC – For all inward supplies which have been received from the input service distributors

Details stated and filed by the input service distributors as well as its corresponding amendment in form FSTR-6 are reflected.

3

Availability of ITC – inward supplies which are liable to reverse charge mechanism

Details of inward supply of products purchased from suppliers who are not registered. Payments to be made by the recipients

4

Availability of ITC- imports of goods

There are 2 worksheets – one reflects the details of products imported from abroad, and the other reflects details of products from the special economic zone unit.

The reference date furnished by the Indian Customs Electronic Gateway is the date of the availability of the input credit tax.

If there have been any amendments made to the bill of entries, they will be depicted in the specially formatted tables giving details about the same

Details about products that have been imported via courier will not be reflected

5

Availability of ITC – other

All information regarding credit notes which have been filed by the said suppliers will be reflected. Details regarding any amendments with regards to the same will also be reflected

6

B2B supply – input tax credit not available

This reflects information about all the supplies which have been declared as well as filed by registered suppliers in their GSTR-1 form.

7

Inward supply received from ISD – input tax credit not available

This reflects information about all the supplies which have been declared as well as filed by ISD in their GSTR-6 form.

8

Inward supply to RCM – input tax credit not available

This reflects information about all the supplies which have been declared as well as filed by suppliers liable towards payment in GSTR-1 form

9

Others – Input tax credit not available

This reflects information about all the credit notes which have been declared as well as filed by suppliers liable towards payment in GSTR-1 form

Importance and Benefits of GSTR-2B

Importance

The GSTR-2B was introduced in August 2020. It enables registered individuals to benefit from input tax credit regarding debit notes and invoices provided by the suppliers in their respective GSTR-1/Invoice Furnishing Facility (IFF) and reflected in form GSTR-2B. This form aids taxpayers to make a seamless reconciliation of input tax credit with their respective books of accounts and other financial documents.

Benefits

  • Helps in filing GSTR-3B – Considerably reduces the time involved in filing GSTR-3B by simplifying the entire procedure and is highly time-effective.
  • Optimises accuracy – The GSTR-2B statement helps to reduce errors by a large margin, thereby furnishing accurate details.
  • Reconciliation – Taxpayers can reconcile their books of accounts and the details of the GSTR-2B statement. This enables taxpayers to confirm that a reversal of credit takes place and, at the same time, ensure that it takes place only once for a specific document.
  • All the information regarding input tax credit is present in this document. This saves you a lot of time. You don’t have to repeatedly download it, unlike the GSTR-2A document.

How to Access GSTR-2B on the GST Portal?

Given below are the details for accessing this statement on the GST portal:

  1. Log onto the GST portal and key in all your credentials
  2. Click on the words ‘return dashboard.’
  3. Make a selection of the timeframe you wish to understand the details of the amount of tax that is applicable
  4. Once you see the GSTR-2B heading, click on the word ‘view’. You can also click on the option that states ‘download’.

Contents and Features of GSTR-2B

Given below are the contents and features of the GSTR-2B:

  • The GSTR-2B statement reflects the availability and non-availability of the input tax credit across the numerous sections of the statement.
  • The inputs of each section inform what necessary steps have to be taken by the taxpayers.
  • All relevant details concerning invoices, debit and credit notes, and amendments, if any, can be viewed. You can also download it.
  • Details regarding the deadlines, advisory for the generation of the GSTR-2B, and usage of the GSTR-2B statement.
  • All requisite information regarding the imports of products and the import from the special economic zone units.

Also Read: Types of GST Returns: Forms, Due Dates & Penalties

Difference Between GSTR-2A and GSTR-2B

Let us understand the difference between the above two documents:

Grounds of comparison

GSTR-2A

GSTR-2B

Type of statement

Dynamic statement which changes on the premise of the various documents which vendors and suppliers upload

Static statement issued on the 12th of every month. Changes are not accepted after details are uploaded.

Statement availability

Monthly basis

Monthly basis

Information sources

Information is obtained from GSTR 2, GSTR 5, 6, 7, 8, and ICES

Information as depicted in GSTR 1, 5, 6 and ICES

ITC segregation

No classification of ITC

Applicable

Claims to input tax credit

Taxpayers can obtain an input tax credit in the specific month in which transactions are executed

Can be claimed in the following month

Information presented

Details of invoices are based upon the documents recorded by suppliers

Includes details of invoices, of filing returns, as well as the eligibility for input tax credit

Input tax credit from the various units of the special economic zone

Not available

Available

Presentation of all data

Details are furnished in sync with the details which suppliers provide on a consistent basis

Post the 12th day of each month

Conclusion

The contents of this article help you understand how GSTR-2B informs you about the availability or non-availability of an input tax credit. This article outlines the various benefits of the GSTR-2B to the taxpayers. It helps your department of accounts to get a detailed understanding of the input tax credit for a specific month. 
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What is the difference between GSTR-2A and GSTR-2B?

Ans:

GSTR-2A is of a dynamic nature whereas GSTR-2B is of a static nature.The details in a GSTR-2A are continuously updated whereas in GSTR-2B the information is updated on a monthly basais.

Q: What is the meaning of GSTR-2B reconciliation?

Ans:

This input tax credit statement is released on the 12th day of each month. It is auto-generated. It helps all registered taxpayers to understand how to reconcile the input tax credit details with their books of accounts and financial statements. This document helps them to categorise various documents as well as certificates so that the tax credit is not claimed again.

Q: What is GSTR-2B?

Ans:

It is an auto-generated statement that helps registered taxpayers understand how input tax credit can be claimed.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.