Detailed Analysis of GSTR 2B

detailed analysis of gstr 2b
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Detailed Analysis of GSTR 2B

What is GSTR 2B?

GSTR 2B is an auto-drafted static statement that will reflect the summary of the input tax credit which will be bifurcated into eligible input tax credit and ineligible input tax credit along with reasons of ineligibility.

It will be generated based on the information furnished by suppliers in their respective GSTR-1, GSTR-5 (non-resident taxable person), GSTR-6 (input service distributor), and details of import of goods from ICEGATE.

It is a summary of ITC which will be made available on the 12th of the following month. For e.g. for the month of August 2020, it will be made available on 12th September 2020.

Is GSTR 2B a return?

There is no legal provision for GSTR 2B until now in the GST Act or GST Rules. GSTR 2B is not a return/statement to be filed by taxpayers. It is an indicative summary statement of ITC that is likely to help the taxpayers in matching the ITC.  It can be viewed or downloaded in PDF format as well as excel format from the GSTN portal. An email and SMS will be sent to the taxpayers upon generation of GSTR 2B.

What will GSTR 2B consist of?

Auto drafted Form GSTR-2B  will consist of:

Table 3 – A summary of ITC available as on 12th of the following month which will be bifurcated into

  • Credit that can be availed and
  • Credit that is to be reversed

Table 4 – A summary of ITC not available as on 12th of the following month which will be bifurcated into

  • ITC not available and
  • ITC reversal
Can a taxpayer claim all the ITC that is reflecting in GSTR 2B while furnishing GSTR 3B?

NO, All the ITC that reflects in GSTR 2B cannot be claimed as it all the ITC which reflects may not be pertaining to the same tax period. As it would also contain the details of ITC of previous periods which is already claimed by the taxpayer.

ITC for the following is not likely to reflect correctly in the GSTR 2B 

Will the ITC from the supplier who files quarterly return in Form GSTR-1 reflect in GSTR 2B of the relevant tax period?

NO, The ITC will not reflect in the relevant tax period as the due date of filing quarterly GSTR 1 is later than the date of generation of GSTR-2B. In such instances, taxpayers are advised to avail of the input tax credit on a self-assessment basis and not based on GSTR-2B.

For e.g. Credit from a supplier who files quarterly GSTR 1 (Ap-Jun) will reflect in GSTR 2B of July as generally the due date of filing quarterly GSTR 1 is the 30th of the month after the end of the quarter.

Will the ITC from the non-resident taxable person who files monthly return in Form GSTR-5 reflect in GSTR 2B of the relevant tax period?

ITC will reflect in the relevant tax period ONLY if the non-resident taxable person files the return in Form GSTR-5 on or before the 11th whereas generally the due date of filing GSTR 5 is the 13th of the following month.

Otherwise, ITC which will reflect will be of the previous period as the due date of filing monthly return in Form GSTR-5 is later than the date of generation of GSTR-2B. In such instances, taxpayers are advised to avail the input tax credit on a self-assessment basis and not based on GSTR-2B.

For e.g. Credit from a supplier (non-resident taxable person) who files a monthly return in Form GSTR-5 (July) will reflect in GSTR 2B of August as generally the due date of filing quarterly GSTR-5 is 13th of the following month.

Will the ITC from the input service distributor who files monthly return in Form GSTR-6 reflect in GSTR 2B of the relevant tax period?

ITC will reflect in the relevant tax period ONLY if the input service distributor files the return in Form GSTR-6 on or before the 11th whereas generally the due date of filing GSTR-6 is the 20th  of the following month.

Otherwise, ITC which will reflect will be of the previous period as the due date of filing monthly return in Form GSTR-6 is later than the date of generation of GSTR-2B. In such instances, taxpayers are advised to avail the input tax credit on a self-assessment basis and not based on GSTR-2B.

For e.g. Credit from a supplier (input service distributor) who files a monthly return in Form GSTR-6 (July) will reflect in GSTR 2B of August as generally the due date of filing quarterly GSTR-6 is the 20th of the following month.

Will TDS deducted u/s 51 get reflected in GSTR 2B?

NO

Will TCS collected u/s 52 get reflected in GSTR 2B?

NO

Import of Goods & Services

Will all the ITC pertaining to the import of goods get reflected in GSTR 2B?

NO all the ITC pertaining to the import of goods will not get reflected in GSTR 2B. Only the details of imports which are updated till 11th midnight by ICEGATE will reflect on the presumption that ICEGATE is linked with GST Portal on a real-time basis.

Note: It is likely that details will be made available for the month of August.

If the import of goods is made through courier services will it reflect in GSTR 2B?

For now, the details of ITC for goods that are imported through courier service will not be reflected in GSTR 2B. In the press release, it was mentioned that the same shall be made available shortly.

If the import of goods is made through the post office will it reflect in GSTR 2B?

For now, the details of ITC for goods that are imported through the post office will not be reflected in GSTR 2B. In the press release, it was mentioned that the same shall be made available shortly.

If the goods are imported through non-computerized ports (non-EDI ports) will it reflect in GSTR 2B?

For now, the details of ITC for goods that are imported through non-computerized ports (non-EDI ports) will not be reflected in GSTR 2B. In the press release, it was mentioned that the same shall be made available shortly.

Will the reverse charge credit on import of services get reflected in GSTR 2B?

No, As it is a tax paid on a reverse charge basis and the details are to be furnished by the taxpayer while furnishing GSTR 1 and GSTR 3B.



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CA Ankita Khetan