WHAT IS GSTR - 2B

 GSTR - 2B VS 2A

Here you will get to know very easy explanation regarding GSTR 2B. What is GSTR 2B? In your return filling page you will see 4 Tabs as shown below:

In the above picture you can see its showing GSTR 2B (Auto - drafted ITC Statement).

Technical definition of GSTR 2B is, GSTR 2B is an auto - drafted Input Tax Credit (ITC) statement generated for every recipient, on the basis of the information furnished by their suppliers, in their respective Form GSTR- 1 & 5 and Form GSTR -6 filed by ISD.

Basically One's GSTR 1/5 becomes the other's GSTR 2B.

You can understand GSTR 2B well only if you know what is GSTR 2A. Before there was only GSTR 2A for reconciliation of purchases. Now there is GSTR 2B also available. GSTR 2B is nothing but is auto drafted details of Purchases of the receiver. A Tax payer can have all there purchases details in GSTR 2B. Before it was Available in GSTR 2A.

GSTR 2B and GSTR 2A both are similar and both are parts of Tax payers purchases and contains all the details of purchases.

GSTR 2A contains the details like of which period the purchase is and when the purchases were filled of the purchase details that are available in GSTR 2B

GSTR 2B

In short GSTR 2B contains the details of taxpayers purchases bill wise and amounts are shown differently in IGST , CGST & SGST columns.

Before in GSTR 2A there was shown total purchase under one head but now in GSTR 2B you will be able to see exactly the amounts that you will have to claim as ITC. See Image below:

GSTR 2A

As you can see in the above images, in the image GSTR 2B you can see how much IGST , CGST, SGST you have available to claim and in GSTR 2A you can have the details that the ITC Available is of which period and was filled on which date.

You cannot claim ITC more than the ITC shown in GSTR 2B

GSTR 2B is nothing but are the details of GSTR 1/5 filled by your suppliers.

A taxpayer when files his or her GSTR 1/5 ( SALES / OUTWARD SUPPLIES) that auto drafts in the GSTR 2B of their Suppliers ( to whom they sold their products).

Basically One's GSTR 1/5 becomes the other's GSTR 2B.

GSTR 2B is made available so that before filling of GSTR 3B every tax payer should reconcile their purchases ITC with auto drafted GSTR 2B and should claim only the eligible ITC available for claiming.

Main purpose of GSTR 2B is that  

• No credit is taken twice
• Credit is reversed as per law
• Tax on reverse charge basis is paid

GSTR 2B is generated once on 12th of the following month, means the GSTR 2B generated on 12th of November will contains the invoices from 12th of October to 11th of  November.

The taxpayers who will file invoices in their GSTR 1/5 between 12th of October to 11th of November will be reflected in 12th November's GSTR 2B, and any invoice filled on or after 12th November will be displayed on next auto drafted GSTR 2B that will be generated on 12th of December which will contains the details of Period 12th November to 11th December and so on...

How to Reconcile your data with GSTR 2B will be explained in my next Blog.