GSTR 2 : Return Filing, Format, Eligibility & Rules

GSTR-2 is a monthly return that allows the taxpayer to declare and summarise the details of inward purchases of taxable goods and/or services. However, the GSTR-2 form is currently suspended since September 2017 through amendment to the CGST Rules. In its place, GSTR-3B which is a return in a combined version of GSTR-2 and GSTR-3, is in use. For details about GSTR-3B, read our article “All about GSTR-3B return”. In this article, we discuss the various aspects of the erstwhile form GSTR-2.

Key Takeaways

• GSTR-2 has been paused since 2017; now GSTR-2A/2B must be checked for purchases and used to claim tax credits with GSTR-3B.
• GSTR-2 had to be filed by the 15th of each month; no changes allowed later.
• A late fee of Rs.200/day, up to a maximum of Rs. 5000, was applicable, plus interest.
• For 2026-27, new rules simplify tax rates and tighten credit matching.

About GSTR-2 and its importance

Until August 2017, every registered taxable person under GST was required to give details of inward supplies, i.e., purchases and Input Tax Credit (ITC) for every tax period in the form GSTR-2.

GSTR-2 contains details of all the purchases transactions of a registered dealer for a month. It also includes purchases on which reverse charge applies. The GSTR-2 filed by a registered dealer would have been used by the government to check with the sellers’ GSTR-1 for buyer-seller reconciliation.

However, since it is currently not in use from September 2017 tax period onwards, it has lost its significance. Instead, the taxpayers must report their eligible ITC in the form GSTR-3B while checking with their GSTR-2B and GSTR-2A.

What is buyer-seller reconciliation?

Buyer-seller reconciliation or invoice matching or is a process of matching taxable sales by the seller with the taxable purchases of the buyer.  It is vital because ITC on purchases will only be available if the details of purchases filed in GSTR-2 (currently in GSTR-3B) return of buyer matches with the details of sales filed in GSTR-1 of their seller. 

For example, Ajay buys 100 pens worth Rs. 500 from Vijay Stationery. Vijay Stationery must show Rs. 500 sales in his GSTR-1. Ajay must show the same Rs. 500 purchase in GSTR-2 (currently GSTR-3B) to claim ITC. Unless the amounts match, Ajay will not be able to claim ITC. 

At present, this reconciliation or matching is done between GSTR-2B and GSTR-3B. Sometimes, the taxpayer may have to refer to the GSTR-2A.

Most of the headings under GSTR-2 are auto-populated from counterparties’ GSTR-1, so it would have involved minimal time.  

When was GSTR 2 due for a month?

As per the Act, the due date for filing GSTR-2 is 15th of next month. There was a 5-day gap between GSTR-1 & GSTR-2 filing given to correct any errors and discrepancies. However, the due date for businesses filing returns on a quarterly basis was never announced. 

What happened if GSTR-2 was not filed?

If GSTR-2 return is not filed then the next return in form GSTR-3 (currently GSTR-3B) could not have been filed. Hence, late filing of GST returns have a cascading effect leading to heavy fines and penalty.

However, currently GSTR-2 and GSTR-3 both are suspended since September 2017.

If one delays the filing, he/she would have been liable to pay interest and a late fee. Interest is 18% per annum. It had to be calculated by the taxpayer on the amount of outstanding tax to be paid. The time period was from the next day of filing (16th of the next month) up to the date of payment. The late fee would have been Rs. 100 per day per Act. So, it is Rs.100 under CGST & Rs.100 under SGST. Total will be Rs. 200/day. The maximum is Rs. 5,000.There is no late fee for IGST. 

Who should file GSTR-2?

Every registered person was required to file GSTR-2 irrespective of whether there are any transactions during the month or not. However, these registered persons do not have to file GSTR 2 as per GST law –

• Input Service Distributors
• Composition Dealers
• Non-resident taxable person
• Persons liable to collect TCS
• Persons liable to deduct TDS
• Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)

How to revise GSTR 2?

GSTR 2 once filed cannot be revised. Any mistake made in the return can be revised in the next month’s return. It means that if a mistake is made in GSTR 2 of July 2017, rectification for the same can be made in the GSTR 2 of August 2017.

What is GSTR-2A?

When a seller files his GSTR-1, the information is captured in GSTR-2A. GSTR-2A is a purchase-related tax return that is automatically generated for each business by the GST portal. It takes information from every seller’s GSTR-1 for a particular buyer registered under GST. The return is dynamic in nature and can vary with changes or revisions done by sellers in later tax periods. So, GSTR-2B return was introduced.

What is GSTR-2B? 

GSTR-2B is a new static auto-drafted statement for regular taxpayers. It is available month wise and was introduced on the GST portal from the August 2020 tax period onwards. The details of ITC in this return does not get altered for a particular tax period, even if the seller makes revisions. Hence, the taxpayers can refer to the ITC appearing in this return for eligible ITC claims in GSTR-3B for a tax period.

Contents of the form GSTR-2

There are 13 headings in GSTR-2 format prescribed by the government.  Each heading is explained here along with the details required to be reported under GSTR-2. 

1. GSTIN

• 15-digit PAN-based GSTIN (auto-populated).

2. Name of Taxpayer & Tax Period

• Legal/trade name (auto-populated) and relevant month/year.

3. Inward Supplies from Registered Persons

• Auto-populated from GSTR-1.
• Missing transactions can be added manually (seller confirmation required).
• Excludes reverse charge supplies.

4. Inward Supplies liable to Reverse Charge

• Buyer liable to pay GST. Includes:
  • 4A: Notified RCM supplies
  • 4B: Purchases from unregistered dealers (> ₹5,000/day)
  • 4C: Import of services

5. Inputs/Capital Goods from Overseas or SEZ

• 5A: Imports (Bill of Entry details required)
• 5B: Supplies from SEZ units

6. Amendments to Earlier Periods (Tables 3, 4, 5)

• Corrections made in subsequent returns:
  • 6A: Non-import amendments
  • 6B: Imports/SEZ amendments
  • 6C: Debit/credit notes
  • 6D: Amendments to notes

7. Supplies from Composition/Exempt/Nil/Non-GST

• Includes inter-state and intra-state supplies (e.g., petrol, diesel).

8. ISD Credit Received

• Auto-populated ITC from ISD (GSTR-6).

9. TDS & TCS Credit Received

• TDS: Government deductions (GSTR-7)
• TCS: E-commerce collections (GSTR-8)

10. Advances Paid & Adjustments

• Part I: Current advances and adjustments (including RCM)
• Part II: Amendments to earlier advances

11. ITC Reversal / Reclaim

• 11A: Current month reversals (Rules 37, 39, 42, 43, etc.)
• 11B: Amendments to earlier reversals

12. Output Tax Adjustments

• Due to mismatches, duplication, or prior excess/short ITC.
• Covers both additions and reductions in tax liability.

13. HSN Summary of Inward Supplies

• HSN-wise summary of purchases + final declaration.