Table of Contents

Analysis of GSTR-2B and Its Practical Implications

Background of GSTR 2B

GST Council, in its 39th Meeting held on March 14, 2020, recommended linking the data available in GSTN viz. linking outward supply data in Form GSTR-1 and Form GSTR-3B and Input Tax Credit (‘ITC’) data between Form GSTR-2A and Form GSTR-3B.
It was also stated that the present return system (GSTR-1, GSTR-2A & GSTR-3B) will be continued until September 2020.
The Government has issued a Press Release on August 29, 2020, and introduced Form GSTR-2B which indicates ITC available to tax payers for the relevant tax period.

Related Topic:
GSTR-2A VS With GSTR-3B why reversal of availed ITC on reconciliation of does not arise

GSTR-2B is an auto-drafted Input Tax Credit (ITC) statement generated for every recipient(other than composition dealer), on the basis of the information furnished by their suppliers, in their respective
Form GSTR-1 (Outward Supply details) &
Form GSTR 5 (Non-Resident Taxable Person return) &
Form GSTR-6 filed by Input Service Distributor.
It is a static statement and will be made available for each month, on the 12th day of the succeeding month i.e. for the month of August 2020 the statement will be generated on 12th September.
It consists of all documents filed by suppliers/ISD in their Form GSTR-1, 5 & 6 between 00:00 hours on the 12th day of the preceding month to 23:59 hours, on the 11th day of the current month. Thus, the statement generated on the 12th of September will contain data from 00:00 hours of 12th August to 23:59 hours of 11th September

Related Topic:
GSTR 2A Vs GSTR 2B – Detailed Comparison of GSTR-2A with GSTR-2B

The details filed in GSTR-1 & 5 (by supplier) & GSTR-6 (by ISD) would reflect in the next open GSTR-2B of the recipient irrespective of the supplier’s/ISD’s date of filing.
If a supplier files a document INV-1 dt. 15.08.2020 on 11th September, it will get reflected in the GSTR-2B of August (generated on 12th September).
If the document is filed on 12th September 2020 the document will be reflected in GSTR-2B of September (generated on 12th October).
Instances where the return due date is later than the date of generation of GSTR 2B, it is advised to avail ITC on a self- assessment basis.

Related Topic:
GSTR 2A Vs GSTR 2B – Detailed Comparison of GSTR-2A with GSTR-2B

The insertion of GSTR-2B on the GSTN portal is for assisting the taxpayers in reconciling and matching the Input Tax Credit periodically.
Taxpayers can now reconcile data generated in Form GSTR-2B, with their own records and books of accounts.
By this reconciliation, taxpayers have to ensure while filing of GSTR 3B that;

→ No credit is taken twice,

→ Credit is reversed as per law &

→ Tax on reverse charge basis is paid correctly.