Difference between GSTR 2A and GSTR 2B, What are GSTR 2A and 2B, GSTR 2a and 2b reconciliation, Ebizfiling

What is GSTR 2A and 2B? And Difference between GSTR 2A and GSTR 2B

Introduction

GSTR 2A and GSTR 2B, that are auto-populated returns, were recently implemented by the GST (Goods and Service Tax). We will look at the differences between GSTR 2A and GSTR 2B in this article. Also, information on “What are GSTR 2A and 2B?”, and GSTR 2A and 2B reconciliation is mentioned in the article.

  • Form GSTR 2A – It contains information of Auto Drafted Supplies.

  • Form GSTR 2B – It is an Auto Drafted ITC (Input Tax Credit) Statement.

Surprisingly, the above-mentioned statement contains information about both inbound supplies and ITC (Input Tax Credit). It is crucial to know the difference between the two statements because they cover the same information.

What is GSTR 2A and 2B?

  • GSTR 2A

The GST portal automatically generates GSTR 2A, a purchase-related dynamic tax return, for each entity. The information is captured in GSTR 2A when a seller files his GSTR-1. It uses the information from the seller’s GSTR-1 to determine what products and/or services were acquired in a given month. When filing GSTR-3B and GSTR-9 as a GST registered buyer, you can resort to the GSTR-2A for input tax credit details.

  • GSTR 2B

GSTR-2B is a new static month-by-month auto-drafted statement introduced on the GST portal for regular taxpayers (whether or not they have opted into the QRMP programme). GSTR-2B is similar to GSTR-2A in that it shows each month’s eligible and ineligible Input Tax Credit (ITC), but it remains constant or unaltered for a period of time. In other words, any time a GSTR-2B for a month is accessed on the GST (Goods and Service Tax) portal, the data in it remains unchanged, even if their suppliers make modifications in consecutive months.

GSTR 2A and 2B Reconciliation

According to the information available at the time, the taxpayer failed to reconcile purchase invoices with the GSTR 2A/2B before filing the GSTR 3B Returns. The two main causes for reconciliation of forms GSTR 2A is if there is a disparity in the information while filing GSTR 3B Returns and if an enterprise is ineligible for ITC.

Below are the points on “Why GSTR 2A and 2B reconciliation Important?” 

  • Government Notices: If there is a mismatch in ITC (Input Tax Credit) between GSTR 2A/2B and GSTR 3B, GST (Goods and Service Tax) authorities are sending notices to the affected taxpayer/s, requesting clarification. If the taxpayer fails to correct the mistake and present matching documents within seven days, they must pay the difference plus interest.

  • Ineligible for ITC: If the GST returns are not filed, the business will be ineligible for the ITC (Input Tax Credit). They will also be responsible for paying a penalty on the total amount that is need to be pay under GST (Goods and Service Tax). This will have a substantial impact on all enterprises who use input and raw material tax credits to minimise the amount of tax they must pay.

Difference between GSTR 2A and GSTR 2B

 

GSTR 2A

GSTR 2B

ITC (Input Tax Credit) shall be recorded in the GSTR – 2A of the preceding period for which it is lodged when the Supplier files a return for any previous period.

When a supplier submits a return from a previous period, the ITC will be reflected in the GSTR – 2B for the current month.

GSTR 2A is dynamic in nature, When the supplier uploads the documents/information, it keeps on changing.

On the other hand, GSTR 2B does not change with the supplier activities. In simple terms, it remains constant in nature.

In GSTR 2A the data is kept on changing

While in GSTR 2B data remains constant there is no changes in the data recorded once.

The data source for GSTR 2A is GSTR 1/IFF, GST – TDS, GSTR 8, GSTR 5 (Non-Resident), and GSTR 6.

Data Source for GSTR 3B is GSTR 6, GSTR 5, and GSTR 1/IFF

Example: ITC will be reflected in GSTR – 2A of April, which was filed in July.

Example: ITC will be reflected in GSTR – 2B of July if GSTR-1 of April is filed in July.

Basic information for ITC (Input Tax Credit)

The registered person will be eligible for a maximum of 5% of an Input Tax Credit (ITC) in respect of invoices/ debit notes that are not reflected by the supplier in Form GSTR-1 or invoice furnishing facility, as per rule 36(4) of the Central Goods and Services Tax (GST) Rules, 2017. In order to comply with the provisions of Rule 36 (4), the question of whether to use Form GSTR-2A or Form GSTR-2B as the base would inevitably arise.

 

As previously stated, Form GST Return 2B is static and thus can be used as a starting point. Notably, the GST (Goods and Service Tax) system is currently auto-reflecting ITC (Input Tax Credit) values in Form GSTR-3B as per Form GSTR-2B. It is important to note that the government has not given any further clarification in this matter.

Conclusion 

The GST (Goods and Service Tax) portal automatically generates a purchase-related dynamic tax return for each business, and Form GSTR-2B is a new static month-by-month auto-drafted statement for regular taxpayers (whether or not opting into the QRMP program) introduced on the GST portal. The GSTR-2A will be decided by the period of return in which the invoice was declared, while the GSTR-2B will be determined by the date of filing of the GSTR-1, not by the period of return or the date of invoice.

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Author: zarana-mehta

Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.

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