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Guide on GSTR-2B: Auto-drafted ITC Statement

Updated on:  

08 min read

GSTR-2B is a new 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.

Latest Updates on GSTR-2B

28th May 2021
CGST Rule 36(4) to cumulatively apply for April, May and June 2021 while filing GSTR-3B of June 2021.

1st May 2021
The CGST Rule 36(4) restricting provisional ITC claims to 5% of GSTR-2B in GSTR-3B is relaxed for April 2021. The taxpayer can apply this rule cumulatively for both April and May while GSTR-3B for May 2021.

1st February 2021
Budget 2021 update: Section 16 amended to allow taxpayers’ claim of the input tax credit based on GSTR-2A and GSTR-2B. Henceforth, the input tax credit on invoice or debit note may be availed only when the details of such invoice or debit note have been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note.

22nd December 2020
1. The recipients can claim provisional input tax credit in GSTR-3B to the extent of 5% instead of earlier 10% of the total ITC available in GSTR-2B for the month.
2. Suspension of GST registration may get attracted under CGST Rule 21A if there are major discrepancies between the GSTR-3B vis-a-vis the GSTR-1 and GSTR-2B.

15th December 2020
The GSTR-3B return will now be auto-populated based on the GSTR-1 and GSTR-2B of the taxpayer, from the November 2020 tax period onwards. The auto-populated GSTR-3B will also be made available in a downloadable PDF format.

15th July 2020
The taxpayers must henceforth use GSTR-2B instead of GSTR-2A from the tax period of August 2020 onwards, for ITC claims in GSTR-3B.

Introduction to GSTR-2B

GSTR-2B provides eligible and ineligible Input Tax Credit (ITC) for each month, similar to GSTR-2A but remains constant or unchanged for a period. In other words, whenever a GSTR-2B for a month is accessed on the GST portal, the data in it remains the same without being changed for subsequent changes by their suppliers in later months. 

GSTR-2B is available to all normal, SEZ and casual taxpayers. Every recipient can generate it on the basis of the GSTR-1, GSTR-5 and GSTR-6 furnished by their suppliers. 

The statement will clearly show document-wise details of ITC eligibility. ITC information will be covered from the filing date of GSTR-1 for the preceding month (M-1) up to the filing date of GSTR-1 for the current month (M). 

For instance, GSTR-2B generated for July 2020 will contain documents filed by their suppliers from 12 a.m. on 12th July 2020 up to 11:59 p.m. on 11th August 2020. The statement for July 2020 will be generated on 12th August 2020.

Importance and benefits of GSTR-2B

The data in GSTR-2B is reported in a manner that allows taxpayers to conveniently reconcile ITC with their own books of accounts and records. It will help them in easier identification of documents to ensure the following:

  • The input tax credit is not availed twice against a particular document.
  • The tax credit is reversed as per the GST law in their GSTR-3B, wherever required.
  • GST is correctly paid on a reverse charge basis for the applicable documents, including import of services.
  • The statement indicates the respective tables or columns of GSTR-3B under which the input tax credit of an invoice/debit note must be taken.

When was GSTR-2B made available?

GSTR-2B has been made available from August 2020 onwards. It can be generated by recipient taxpayers once a month on the 12th of the month next to the tax period. For instance, GSTR 2B for August 2020 can be accessed on 12th September 2020. 

The timelines for the generation of GSTR-2B can be checked out on the government portal under the ‘View Advisory’ tab.

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

The following are the steps to access GSTR 2B, available from 12th August 2020: 

Step 1: Log in to the GST portal. A taxpayer must use his/her credentials to log in. 

Step 2: Navigate to the ‘Returns Dashboard’. 

GSTR2B

Step 3: Select the relevant tax period. Select the month and financial year.

GSTR2B

Step 4: On the ‘GSTR-2B’ tile, you may either click on ‘View’ or ‘Download’, as per the need.

GSTR2B

(a) Intend to download:

If the total number of documents in all tables of GSTR-2B exceeds 1,000, you can either use the advanced search option or download the document information in excel/JSON format from the GSTR-2B download page. Click the download button to go to the GSTR-2B download page. 

(b) Intend to view:

If the number of line items is less than 1,000, then you may use the ‘View’ option.

Step 5: Take suitable action on the GSTR-2B based on the option chosen in Step 4.

(a) Intend to download:

If you plan to download, click on the button known as “Generate Json File To Download” to check out the statement on Offline Matching Tool. Alternatively, click on the “Generate Excel file to download” button to obtain the data in the excel file on your system.

GSTR2B

(b) Intend to view:

GSTR-2B screen appears and has two tabs called Summary And All Tables.

The Summary tab is further classified into two parts:

  • Part A (ITC Available)

ITC summary value of credits available as on its generation date and is divided into credit that can be availed and credit that must be reversed (Table 3)

  • Part B (ITC not Available):

ITC summary value of credits not available and is classified into ITC unavailable and ITC reversal (Table 4)

You can fetch the documents by clicking on the hyperlinked text of B2B – Invoices, B2B – Debit notes, B2B – Invoices (Amendment) and B2B – Debit notes (Amendment).

GSTR2B

The All Tables tab will have the ITC information that can be sorted as per the tables of the GSTR-2B form such as B2B, B2BA, B2B CDNR, B2B CDNRA, ISD, ISDA, IMPG and IMPGSEZ.  

Further, ITC appears document-wise (document details) with filters to sort data as per your need. Further, you can filter data supplier-wise as well.

GSTR2B

Note: For Import of goods from overseas on bill of entry – IMPG table, only document details are available and no supplier wise details are available.

Contents and features of GSTR-2B

The input tax credit on purchases from any regular taxpayers and non-resident taxable persons will be available in GSTR-2B. Further, the input tax credit distributed by the input service distributor shall also be available. 

The contents of GSTR-2B can be summarised as follows:

  1. Summary statement showing ‘ITC available’ and ‘ITC not available’ for every section.
  2. Advisory for every section clarifies the kind of action that taxpayers must take.
  3. Document-wise details such as invoices, credit notes, debit notes, etc. to view and download along with amendments.
  4. Cut-off dates and advisory for generating and using GSTR-2B.
  5. Import of goods and import from SEZ units/developers (available from GSTR 2B of August 2020 onwards).

The form GSTR-2B is classified into two categories:

  • ITC is available: PART-A of ITC Available contains details of inward supplies, credit-debit notes (CDN), including amendments, and import of goods divided into four parts- ITC for supplies from registered persons, ITC from ISD, ITC towards inward supplies on reverse charge and import of goods. Whereas, PART-B is ITC Reversal has one part called ‘Others’ that contains details of credit notes and amendments.
  • ITC is not available: PART-A of ITC Not Available has purchase invoice or CDN details, including any amendments, divided into three parts- All other ITC for supplies from registered persons, ITC from ISD and ITC towards inward supplies on reverse charge. Whereas, PART-B has CDN details and amendments under ‘Others’ heading.

Note: Amendment tables in GSTR-2B give only the differential tax amount (Amended – Original), also referred to as the delta value. But the document details will display revised details with reference to the original document.

The input tax credit will be marked as ‘not available’ in the following scenarios:

  • Where the time limit to avail input tax credit on an invoice or debit note has expired under section 16(4) of the CGST Act (earlier of 30th September of the year following the financial year or date of filing annual returns).
  • The state of the supplier and place of supply is the same, whereas the recipient is located in another state.
  • When the purchaser is not eligible for Input Tax Credit towards an invoice or debit note is issued for the supply of goods or services, or both.

The notable features of GSTR-2B are as follows:

  • To view and download the summary statement as a PDF file.
  • Can obtain section-wise details or complete download of ITC instantly.
  • Availability of section-wise advisory.
  • Allows text search for all the generated records.
  • Option to view, filter and sort data, as required.
  • Hide/view the columns as per the user’s convenience.
  • Where the file contains more than 1,000 records, options for a full download of GSTR-2B and the advanced search is available.
  • An email or an SMS will be sent to the taxpayer informing about the generation of GSTR 2B.
  • Only documents filed by suppliers/ISD in their GSTR-1/5/6 are reflected.

The detailed format of GSTR-2B

Here’s a glimpse of a downloaded GSTR 2B:

To get the detailed template of GSTR-2B, click on ‘Download Now’.

Comparison of GSTR-2A with GSTR-2B

GSTR-2A and GSTR 2B can be compared as follows:  

Parameters for ComparisonGSTR-2AGSTR-2B
Type of statementA progressive auto-drafted statement that provides input tax credit (ITC) details to every recipient of supplies, based on the suppliers’ data.A constant auto-drafted statement that provides input tax credit (ITC) details to every recipient of supplies, based on the suppliers’ data.
Nature of the statementDynamic, as it changes from day to day, as and when a supplier uploads the documents.Static, as the GSTR-2B for one month, cannot change based on future actions of the supplier.
Frequency of availabilityMonthlyMonthly
Source of informationGSTR-1 or IFF*, GSTR-5, GSTR-6, GSTR-7, GSTR-8, ICESGSTR-1 or IFF*, GSTR-5, GSTR-6, ICES
GSTN advisory on ITC claims Does not contain information/advisory on the action a taxpayer is supposed to takeContains an advisory against each section on whether the ITC is eligible, ineligible or reversible, for the taxpayer to take action accordingly in his GSTR-3B
When will ITC entries get reflected from various sources?GSTR-1: Saved/filed/submitted GSTR-6: Submitted GSTR-7 and GSTR-8: FiledGSTR-1, GSTR-5, or GSTR-6: Filed
Cut-off date for entries, to view the statement for a tax periodNot applicable, as it’s a dynamic statement11th/13th of the succeeding month (depending on the type of return)  The statement will be generated on the 14th of the succeeding month
Maximum ITC entries viewable on GST portal without excel download500 rows1,000 rows

**An Invoice Furnishing Facility (IFF) has been introduced for quarterly GSTR-1 filers to upload their supply invoices so that the recipient of supplies can continuously avail input tax credit.

GSTR-2B vs GSTR-3B : Matching Purchase register with GSTR-2B

It is recommended that taxpayers reconcile the data provided in GSTR-2B with their own records and books of accounts. Taxpayers must make certain that

  • In no conditions is the input tax credit taken twice for the same supply.
  • Credit is reversed in GSTR-3B in accordance with the GST Act and Rules.
  • Tax is charged on a reverse charge basis and paid to the government.
  • Tax credit is being availed for the tax which has been actually paid to the supplier.
  • The purchase invoices against which tax credit is going to be claimed in GSTR-3B is found in the GSTR-2B in compliance with Section 16 of the CGST Act.
  • Taxpayers can arrive at the provisional amount of tax credit for GSTR-3B which is 5% of available tax credit as per GSTR-2B, as per CGST Rule 36(4).
  • No excess tax credit is claimed, otherwise it must be paid back later on with an interest of 24% per annum.
  • ITC belonging to a particular financial year towards purchase invoices or debit notes raised in that financial year must be availed before a deadline under the GST law. It is earlier of the due date of filing GSTR-3B for September of the year following that financial year or GST annual return filing date.
  • No major mismatches exist between GSTR-2B and GSTR-3B that can lead to cancellation of GST registration.

Matching GSTR-2B with purchase books is more important than matching with the GSTR-3B. It is because, from late 2020 onwards, GSTR-3B is being auto-populated with the values from GSTR-1 and GSTR-2B forms for the corresponding tax period. Hence, there are lesser chances for any mismatches. 

Once the values are taken from GSTR-2B, the values from GSTR-2A need not be taken. The GST portal provides an option for taxpayers to match their purchase register with the GSTR-2B form known as the Offline Matching Tool. It is critical that you add data and import it into the tool in the same format as given on the GST portal. Otherwise, the tool will produce an error, and you will be unable to continue matching GSTR-2B records with the purchase register.

Matching of entries between the two data must be based on the following parameters:

  • GSTIN
  • Document type
  • Document number
  • Document date
  • Total taxable value
  • Total tax amount should total up to the sum of IGST, CGST, SGST and CESS, if any
  • Tax amount head wise

Further, the matching may result in documents missing in either of the data. If there are invoices or debit notes missing in GSTR-2B when compared to the purchase register, the taxpayer must inform his suppliers about the same and get the document uploaded in the next GSTR-1 return they are filing. The reconciliation between GSTR-2B and purchase register must be carried out more frequently and suitably from 12th or 14th of the month subsequent to the tax period.

Few of the reasons for mismatches between GSTR-2B and purchase books can be as follows:

  • Period of reporting the invoices by the supplier is different from the period of accounting in books by the buyer.
  • Subsequent issue of debit or credit notes by supplier gone unaccounted for by the buyer.
  • Amendments to filed GSTR-1 in subsequent period’s GSTR-1 by the suppliers. For instance, differences in sales details between the books of accounts and GSTR-1 as auto-populated from the e-invoicing system. Thus, supplier amends returns later on.

How does ClearTax GST help in GSTR-2B vs GSTR-3B vs Purchase books matching?

  • ClearTax GST, a cloud-based software, provides an advanced reconciliation tool to quickly compare GSTR 2B with the purchase data, including the bill of entry. 
  • ClearTax GST offerings for reconciliation of purchase data with GSTR-2B and much more are as follows:
  • A single-click import of the purchase data from Tally or any other ERP software
  • Inbuilt validations for accurate upload of the purchase data without errors
  • Optimise input tax credit by downloading multi-month GSTR-2B report
  • Advanced filters and excel report summary to take actions and maximise ITC claims
  • Supplier-level invoice mismatches can be identified for taking corrective actions.
  • Instant comparison report for GSTR-2B versus GSTR-3B available on tap
  • Enjoy 100% optimised ITC claims with ClearTax ITC optimisation calculator
  • Get eligible ITC effortlessly as per Rule 36(4) with a single click
  • Auto-prepare monthly/quarterly GSTR-3B accurately from the filed GSTR-1 and downloaded GSTR-2B
  • Inbuilt communication with the clients and suppliers enabled

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