Understanding Filing of GSTR-2B and Rules Associated With it

GST filing is a term which every businessman with GST registration is familiar with. In this blog, we will learn the specifics of filing a GSTR-2B form which is an auto-drafted ITC (Input Tax Credit) statement generated every month for the recipient. It’s a statement generated on the 12th day of every month and is consistent with the data provided in forms like GSTR-1, GSTR-5, and GSTR-6 by their suppliers.

How GSTR-2B is Different?

The 14th March Meeting of the GST Council recommended significant improvement in the GST filing process. The improvements were aimed at easing out the GST filing process for the business owners. The recommendations included the introduction of GSTR-2B from which is an auto-drafted ITC statement. In the coming sections, we will understand features, scope, and implications of GSTR-2B. This piece will also show a detailed account of eligibility and ineligibility conditions for the said form.

Aim of Introducing GSTR-2B

The GSTR-2B form was introduced to simplify the compliance requirements for taxpayers and help them in computing ITC more accurately. The GST council stated that the newly introduced GSTR-2B will help save the time taken to file returns, minimize errors, ease reconciliation and simplify compliance related processes. The GSTR-2B contains many details that help the taxpayer tally their  ITC easily with the books of accounts and records.

Following are the benefits of GSTR-2B:

• It helps the accounting team to easily inspect the ITC month-wise.
• The report contains all the specified details and considers all the transactions for calculating ITC.
• ITC is auto-generated in this type of filing after the supplier fills all the details through GSTR 1, 5 & 6.
• It is generated every 12th day of the month for computation of ITC of the previous month.

Contents of the GSTR-2B

• It has a summary statement that entails whether ITC is available for each section or not. 
• The advisory also clarifies the type of action needed to be taken by the taxpayers in each section. 
• To download and inspect various details like credit or debit card statements for the month and detailed invoices, etc.

Steps to Download GSTR-2B

Following steps must be followed to access the GSTR-2B:

• Use your taxpayer’s credentials to Log in to the GST portal.
• Access the returns dashboard from the service tab’s return menu.
• Select the fiscal year and the related to return filing period from the menu.
• Now you can click on View or Download the GSTR-2B form. The form can be downloaded completely or section wise in the formats available (Word or Excel).
• Click on View advisory to seek out the cutoff dates for filing.

Features of GSTR-2B Form

• GSTR-2B remains constant for any given tax period.
• The whole document can be downloaded in a PDF or an Excel file format. It can also be downloaded completely or section-wise.
• The summary in the form also contains the data from the ICEGATE (Indian Customs Electronic Gateway) system on inward supplies from SEZ and related import of products.
• One can sort the given data as per their choice and can also hide or view any column as per convenience.
• One can view/download the prints of the credit and debit notes or other invoices etc.
• The statement will imply for the taxpayer whether ITC is eligible or not for each section.
• The taxpayer can take initiatives as per the advice given in GSTR-2B.
• In 1000+ records, the taxpayer can either download the complete GSTR-2B or use the advance search option.

Difference between GSTR 2A & GSTR- 2B

GSTR-2B was introduced in the 39th meeting of the GST governing council to ease the filing procedure for returns and computing ITC. It is an auto-drafted statement which is generated on the 12th day of the month, that helps in computing ITC (Input Tax credit). The form has made the procedure of GST filing for the taxpayers easy. GST compliance has also been efficient in minimizing the errors and saving time.

ITC Filing with GSTR-2B 

The tax returns should be filed in Form GSTR 3B. However, the auto-drafted GSTR-2B statements are generally used as a source to calculate ITC claims. The static nature of filing returns is the key behind simplification of this method. The documents filed in the return statement contain additional data to specify availability of ITC. It is crucial to work out whether ITC is available or not to determine the further steps of the process. The GSTR-2B return filing includes all the invoices at the time of filing. Further, it contains data, like the date of filing and thus the relevant filing period. Additionally, this helps to avoid double filing during reconciliation.

Filing of GST Returns Online

GST Return filing procedures are quite simple and efficient. The Registered taxpayers should log in on the GST Portal with their login details. Post login, the taxpayer should click on the return page in the services section and fill the concerning forms by filing the specified information with documents. The computed liabilities should also be paid off at the time of filing of returns.

GST Returns: Who Must File?

In the GST Return filing process, every regular business is bound to file returns. The standard procedure of the system is that one must file a return manually and enter the small print of the first monthly return called GSTR-1. This leads to the other return form named GSTR 3B getting auto-populated by deriving information filled in GSTR-1. The information is filed by the taxpayer or vendors in the GSTR-1. There are other separate sorts of GST Return forms that are required for special case scenarios which will be discussed in the upcoming sections. 

Different kinds of GST RETURN

For Regular Businesses:-

GSTR-1

GSTR-1 has details of exported supplies of taxable goods or services. The GSTR-1 is filed on a monthly basis. The GST Return is filed on 11th of the subsequent month. Details of the exported supplies of the taxable goods and services till June are going to be filed on the 10th of subsequent month. Additionally, taxpayers whose turnover was equal or Rs. 1.5 crores within the previous fiscal year and have the choice to file GSTR-1 on quarterly basis. This can be done by the end of the subsequent month affected from July to March.

GSTR-3B

This form is filed for the months up to March. It is filed monthly on the 20th of subsequent months.

For Dealers of Composition Scheme

A composition dealer has the advantage of lesser returns and fewer compliance related requirements alongside payment of taxes at a nominal rate. The composition dealer is required to file only 2 returns:

GSTR-4

It is used to file the return for compounding of the taxable person. This form is filed quarterly on 18th of every month of the succeeding quarter.

GSTR-9 and GSTR-9A

These are used to file for an annual return on 31st December of subsequent fiscal year.

GST Returns for Specifically Registered Dealers:

GSTR-5

This return is filed by a non-resident foreign taxable person. It is filed monthly on 20th of subsequent months.

GSTR-5A

It is filed by a Non-resident business owner providing OIDAR services. It is filed monthly on 20th of subsequent months.

GSTR-6

This form is filed by the Input Service Distributor. GSTR-6 is filed on the 13th day of subsequent months.

GSTR- 7

This return is filed by authorities deducting tax at source (TDS). It is filed monthly on 10th of subsequent months.

GSTR-8

It gives a small print of supplies affecting e-commerce operator and the related amount of tax collected. It is filed monthly on 10th of subsequent months.

GSTR-10

It is also termed as the final return. GSTR-10 is filed once every year unless there is any cancellation.

GSTR-11

It gives details of inward supplies to a firm and is filed by an individual having a UIN to claim a refund. It is filed monthly on 28th of the month after the month whose statement is filed.

Maturity of GST Return

The due dates to file different kinds of GST returns could be extended by issuing orders or releasing notifications.

GSTR-1 – maturity

For a turnover close to Rs. 1.5 crores and businesses who opted for Quarterly filing:

If someone forgets filing of any sorts of GST Return within the timeframe then they are susceptible to paying interest on the amount and a late fee. The said interest or the late fee is charged at the rate of 18% for a year. It is calculated on the taxpayer’s outstanding tax amount. The time-period of calculating the tax rate will be from the next day of the last date of making the payment.

The late fee is charged at Rs. 100 per day. And it is paid separately as CGST Rs. 100 and SGST Rs. 100. Thus, the entire late fees amount for every day after the last date of payment is around Rs 200 per day. The highest amount for late fees is Rs. 5000.

To Summarize…

In this blog, we understood the GSTR-2B form which was introduced to make the GST Return filing process efficient. We also understood in detail about the various ramifications related to the introduction of the form. We also understood about the various other GST returns that are filed by business owners and other dealers. 

Filing of GST Returns is a mandatory compliance related procedure for every business registered under the GST Act/regime. Under GST (Goods and Services Tax), filing of GST returns is an essential activity working as a link between the Govt. and the taxpayer. Business owners can contact a reputed financial consultancy firm to understand the various proceedings and the late fee associated with filing their GST returns or getting new GST registrations for their firms.