In our previous article, we understand the various headings of GSTR-1. To further our discussion, we are taking up GSTR-2.
According to revised model GST law, every registered taxable person is required to furnish details of Inward Supply for a tax period. This return has to be filed by the recipient of (goods/services) supplies within 15 days from the end of the relevant tax period. Tax period here means the end of the relevant month.
Most of the headings under this return are auto-populated from counter-party GST return.
Below we have explained each heading along with the details required to be reported under GSTR-2:
GSTIN – Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). A format of proposed GSTIN has been shown in the image below. GSTIN of the taxpayer will be auto-populated at the time of return filing.
Name of the Taxpayer – Name of the taxpayer, will also be auto-populated at the time of logging into the common GST Portal.
Tax Period, Month, Year – ATaxable person is required to select from a drop down the relevant month and year respectively for which GSTR-1 is being filed.
Inward Supplies from Registered Taxable Person – Most of the inward supplies from a registered taxable person will get auto-populated here. This information will flow from GSTR-1 filed by the supplier. Any further claim can be added by the registered person in this section which is not auto-populated as a reason of:
Non-filing of GSTR-1 by Supplier
Supplier filed GSTR-1, however, transaction got missed
In either case, the buyer can manually include these details. Supplier too will get a notification to accept this addition or modification in his GSTR-1A return. Also, if the supply is received in more than one lot, the invoice information should be reported in the return period in which the last lot is received and recorded in books of accounts.
Amendments to Details of Inward Supplies Received in Earlier Tax Periods – Under this head, the taxable person can amend any detail with respect to goods or services received in earlier months. This information can be filled manually. Subsequently, the supplier will also get a notification regarding this modification. A supplier needs to accept this change in his GSTR-1A return.
Goods/Capital Goods received from Overseas (Import of Goods) – Any kind of import of input goods or capital goods in the previous month needs to be reported under this head. Imports are considered as inter-state supply under Goods and Services Tax Law. According IGST liability will be determined basis such declaration.
Amendments in Goods / Capital Goods Received from Overseas (Import of goods) of Earlier Tax Periods – Any amendment in amount/tax calculated on imported goods can be made under this heading. Here, the registered taxable person is also required to furnish detail of all changes in the bill of Entry / Import Report.
Services received from a Supplier Located Outside India (Import of Services) – Any kind of import of services in the previous month needs to be reported under this head. Model GST law requires a Service Receiver to pay GST if such services are received from a person resident outside India. Such services will fall under Reverse Charge Mechanism of the collection of GST.
Amendments in Services Received from a Supplier Located outside India (Import of Services) of Earlier Tax Period – Any amendment in amount/tax calculated on imported services can be made under this heading. Here, the registered taxable person is also required to furnish detail of all changes in the Invoice. Any reduction in value of supply will result in a refund of IGST paid earlier.
Details of Debit/Credit Notes – Thetaxable person is required to report all debit and credit notes with respect to inward supply here. Any debit/credit note issued under reverse charge mechanism will get auto-populated here from counter-party GSTR-1 and GSTR-5.
Amendment to Details of Credit /Debit Notes of earlier tax periods – Any amendment in debit /credit note pertaining to previous months shall be reported under this heading. This will mainly include the changes made under reverse charge mechanism transactions. Any other modification will be auto-populated here.
Supplies Received from Unregistered Person – All kind of supplies other than from a normal registered taxable person will be reported under this heading. This will include supplies from a composition dealer, unregistered person, and other exempt/nil/non-GST supplies. Also, both inter-state and intra-state supplies need to be reported here.
ISD Credit Received – Input Credit received from an Input Service Distributor registered under Goods and Services Tax will get auto-populated in this heading. These will be scenarios where head-office has received input services and some portion of this credit is transferred to the branch office.
TDS Credit Received – This section will only be applicable in case assessee engages in specified contracts with specified persons. Under such scenario, receiver of goods and/or services will deduct a certain percentage of transaction value as Tax Deduction at Source. Such deductor is further required to furnish detail of all TDS collected in his GSTR-7. All this information will get auto-populated here.
TCS Credit Received – This heading is applicable only to the merchants registered with e-commerce operator. Under GST law, E-commerce operator is required to collect tax at source at the time of making payment to such merchants. Read our Impact Analysis on E-commerce marketplace sellers, click here. This information will again be auto-populated from GSTR-8 of E-commerce operator.
ITC Received on an Invoice on Which Partial Credit Availed Earlier – All input credit which was due as a reason of non-filing of return from the supplier will fall under this head. All input tax credit taken earlier will also get auto-populated upon choosing the invoice number.
Tax Liability under Reverse Charge Arising on Account of Time of Supply without Receipt of Invoice
Amendment in Tax Liability Under Reverse Charge arising on account of Time of Supply without receipt of Invoice
Tax Already Paid – This will include GST which is already paid under Reverse Charge in earlier tax period on account of the time of supply for which invoices are received in the current period. It is important to note that tax liability in respect of invoices issued in the current period shall be net of tax already paid on the occurrence of time of supply.
ITC Reversal – All kind of input tax reversal will be reported here. A drop down will be provided to select the reason for reversal. This heading will also include ITC reversal on account of exempt and non-business supplies.
Amendments to ITC Reversal – Registered person under GST law and manually amend any particulars with respect to Input Tax Credit. These changes will be made under this heading.
Some of the other key pointers that must be noted are:
GSTR-2 must be furnished by the 15th of the month succeeding the tax period.
GSTR-2 in not required to be furnished by a Compounding Taxable Person and Input Service Distributor
Auto-population under GSTR-2 would be done, on the basis of GSTR-1 of counter-party supplier.
To discover more on Goods and Services Tax law, Click Here.