INTRODUCTION OF FORM GSTR-2B
Goods and Service Tax Network (GSTIN) recently launched Form GSTR-2B i.e. an auto drafted input tax credit statement, for linking the existing returns with respect to input tax credit and for curbing tax evasion.
How GSTR-2B generated on the portal:
- It is an auto drafted statement which would be prepared on the basis of information furnished by taxpayers in their respective GSTR-1,5(return for NR taxable person) and 6(return for input service distributer) along with information on import of goods from ICEGATE system including inward supplies of goods received from SEZ/developers.
- It is static statement and would be available on 12th of next month, means unlike GSTR-2A it would not change by filing of respective returns or amendment of respective documents by the taxpayer regularly.
- Since, due date of filing GSTR-5 and GSTR-6 is every 20th and 13th of next month respectively, information of GSTR-5 and GSTR-6 would not be reflect in relevant tax period and therefore, taxpayer may avail such input tax credit on self- assessment basis and ignore such availed input when it appears in GSTR-2B of respective month to avoid duplicity of input tax credit.
How GSTR-2B appears to taxpayers:
- Table-3: Part A captures the summary of credit that may be availed in relevant tables of FORM GSTR-3B and Part B captures the summary of credit that shall be reversed in relevant table of FORM GSTR-3B.
- Table-4: ITC not available summary captures the summary of ITC not available as on the date of generation of FORM GSTR-2B.
What type of credit not available in GSTR-2B:
- Invoices on which input tax credit would not be available due to lapse of time for availing such credit, like credit of any financial year would not be allowed after the filing of GSTR-3B for the month of September following the F.Y.
- Invoice on which input tax credit would not be allowed due to place of supply provisions, like where supplier and GSTIN are in the same state and recipient is in another state.
- Input tax credit on reverse charge on import of services would not become part of this statement.
- GSTR-2B would not set-aside the blocked input tax credit, taxpayer would himself identify such credit and reverse them.
How GSTR-2B different from GSTR-2A:
| GSTR-2B | GSTR-2A |
| It is static in nature i.e. it would change by late filing or amendment by the return filers. | It is dynamic in nature i.e. it changes as and when return filers files their returns or amendment any previous document. |
| It would access information from GSTR-1,5,6 and ICEGATE. | It would not access information from GSTR-1,5,6,7 and 8. |
Example to understand above:
Let us assume total input tax credit as per purchase register of M/s XYZ Ltd. for the month of July 2020 is INR. 1,00,000/-, out of which INR. 8,000/- is for motor vehicle (blocked for M/s XYZ Ltd. in terms of S. 17(5) of the act), INR. 3,000/- is credit received from its ISD unit in the month of July 2020.
However, GSTR-2B of the XYZ Ltd. for the month of July 2020 is as follows:
- Part-A of table 3: Input tax credit of INR. 80,000/-, out of which credit of INR. 2,000/- is for the month April,2020, which has been already claimed by the XYZ Ltd, however INR. 80,000/- excludes credit received from ISD unit.
- Part-B of table 3: Input tax credit to be reversed of INR. 5,000/-,
- Part-A of table 4: Input tax credit not available of INR. 7,000/-.
Therefore, Total credit available to XYZ Ltd. for the period July 2020 could be:
| Total credit reflecting in GSTR-2B | 80,000 |
| Less: Credit already availed | -2,000 |
| Less: Credit to reversed due to credit note | -5,000 |
| Less: Credit not available in table 4 of GSTR-2B | -7,000 |
| Less: Blocked credit u/s 17(5), assuming included in GSTR-2B detail | -8,000 |
| Add: Credit received from ISD unit | 3,000 |
| Total available credit | 61,000 |
Also Read: Know every thing about GSTR-2B | New Functionality | GSTR-2B | Advisory & Analysis
Disclaimer
Information contained herein are only for reference purposes and are based on the information publicly available as on the date of this publication. The author or speaker takes no responsibility for its reliability and accuracy. It is advised to take appropriate legal/professional advice before undertaking any business activity or otherwise based on the above. Neither Author nor Yes GST assume no responsibility thereof.
