New Changes made in GSTR-2B: Reconciliation of Input Tax Credit

Last Updated On: Aug. 31, 2020, 9:58 a.m.
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NEW CHANGES IN GSTR-2B: RECONCILIATION OF INPUT TAX CREDIT

GSTN has enabled Form GSTR 2B in the GST Portal. The Taxpayers can now login with their Credentials.

In the 39th GST Council meeting which was held in the month of March 2020, The council had recommended implementing the incremental approach of linking the present system of filing GSTR-3B and GSTR-1.

The Council had recommended various enhancements one of such enhancements was the introduction of an auto-drafted input tax credit (ITC) statement which would help the taxpayer to determine or assist the ITC.

Changes which we can see in the new GSTR-2B:

Form GSTR-2B is going to be such an auto-drafted 1TC statement which will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR-1, 5 (non-resident taxable person) and 6 (input service distributor).

Presently, GSTR-2A is a statement that is dynamic in nature and it changes as and when suppliers used to file their GSTR-1. But in GSTR 3B, every taxpayer needs to determine their ITC by 20th of the Month and if required they need to discharge their tax liability.

Therefore, there is always a need to have a static report from where both the Tax Payer and Departmental People have an idea of Input Tax Credits eligible to be availed as on the date of filing GSTR-3B.

GSTR 2B is such a static statement and will be made available for each month, on the 12th day of the succeeding month.

It is expected that GSTR-2B will help in reduction in time taken for preparing a return, minimizing errors, assist reconciliation & simplify compliance relating to filing of returns.

KEY FEATURES IN GSTR-2B:

GSTR-2B contains information on the import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units/Developers. This feature is not available with the release of GSTR-2B for the month of July but it will be made available shortly.

GSTR-2B includes-

ii. A summary statement that shows all the ITC available and non-available under each section. The taxpayers are given advise against each section and clarifies the action to be taken by the taxpayers in their respective section of GSTR-3B;

iii. Document details: all invoices, credit notes; debit notes etc. are also provided both for viewing and download;

GSTR-2B for the month of July 2020 has been made available on the common portal on a trial basis.

Since this is the first time that the statement is being introduced, taxpayers are advised to refer to GSTR-2B for the month of July 2020 only for feedback purposes.

All taxpayers are requested to go through their GSTR-2B for July 2020 and after comparing the same with the credit availed by them in July 2020, provide feedback (if any) on any aspect of GSTR-2B by raising a ticket on the self-service portal (https://selfservice.gstsystem.in/)

All taxpayers are advised to view the detailed advisory relating to GSTR-2B on the common portal before using the statement.

Reconciliation of GSTR-2B can be done by following the ways below mentioned:

Download GSTR 2B on 12th of Every Month once it is available in the portal

2. Prepare the ITC Statement as per accounts beforehand so that reconciliation can be done faster.

3. There may have invoices that are shown in GSTR 2B by supplier but the same is not booked in accounts due to various reasons i.e GRN is pending, Invoices not received from Vendor etc.

4. There may have some invoices having invoice dates of prior months, but the same is booked in the current month and not appearing in the GSTR-2B in the current month.

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