Phone++91 9654831210
In this article we will discuss about the difference between gstr 2a and 2b, When a seller files his GSTR-1 and the information is captured in GSTR 2A, we can say that GSTR-2A is a purchase-related dynamic tax return that is automatically generated for each business by the GST portal. It takes the information of goods and/or services that have been purchased in a given month from the seller’s GSTR-1, and GSTR2B is user-friendly, more structured, and monthly consolidated as compared to GSTR-1.
Everyone has to know the difference between GSTR-2A and GSTR-2B, which is important for businesses that provide accuracy for reconciliation and optimize their ITC utilization.
A registered taxpayer obtained this form from their registered suppliers during a specific tax period. GSTR-2A is an auto-populated return that provides a comprehensive view of the inward supplies (purchases).
GSTR-2A consists of invoices uploaded by the supplier: GSTR-2A includes details of all invoices that have been uploaded by the supplier in their GSTR-1 return.
On GSTR 2A, all credit and debit notes uploaded by the supplier that reflect changes in the starting of recorded transaction values are also included, as are all adjustments due to corrections, returns, or modifications in the invoices.
If there are any amendments to invoices or credit/debit notes, then GSTR2A accounts are made by their supplier, and then comparing the details in GSTR2A with their records gives the accuracy of the business for ITC claims and can identify any inconsistencies that may need modification for further processing.
GSTR-2A is an auto-fill return that allows taxpayers to provide a complete view of the inward supplies they received from their registered suppliers during a tax period. By comparing the details in GSTR-2A with their records, businesses can ensure the accuracy of input tax credits claimed and identify any discrepancies that may need correction.
It’s important to note that GSTR-2A is read-only, meaning taxpayers cannot directly edit or modify the information in this return. However, it serves as a valuable reference for taxpayers during the reconciliation process and helps in ensuring compliance with GST regulations.
GSTR-2B is an auto-populated return designed to provide a structured overview of the inward supplies received by a registered taxpayer from their registered suppliers. Here’s an overview of what GSTR-2B is:
On GSTR-2B, there are details of invoices, credit/debit notes, and amendments that are made by the supplier to the invoices or credit/debit notes that are already uploaded.
GSTR-2B is generated as an unchanged return on the 14th of every month. Unlike GSTR-2A, which is vital and constantly updated as suppliers submit their GSTR-1 returns, GSTR-2B remains constant for a particular month, even if suppliers make changes to their returns in subsequent months.
There are additional details in GSTR2B that provide ITC for the taxpayer and information related to late fees payable or paid. This information provides taxpayers with a more complete and compliant status.
According to this provision, a registered person can claim a maximum of 5% of input tax credit in relation to invoices or debit notes that were not reflected by the supplier in GSTR-1 or submitted by the invoice furnishing facility.
A common query arises regarding whether to consider Form GSTR-2A or Form GSTR-2B as the basis to comply with the requirements of Rule 36(4).
In this context, Form GSTR-2B, being an unchanged document, is considered a suitable reference for this purpose. It provides a reconcilable exposure of input tax credit, making it a reliable basis for compliance. It’s interesting that the current GST system automatically mirrors the input tax credit figures from Form GSTR-2B into Form GSTR-3B. However, it’s very important to highlight that no official explanation has been provided by the authorities on this matter.
GSTR-2A and GSTR-2B, which work as reconciliation statements within India’s Goods and Services Tax (GST) system, help registered taxpayers align their input tax credit (ITC) with the tax obligations of their suppliers.
The main purpose of reconciling GSTR-2A and GSTR-2B with a taxpayer’s internal records is to verify that the claimed ITC correlates accurately with the actual tax liabilities of their suppliers.
To accomplish this reconciliation, taxpayers must meticulously compare the details presented in GSTR-2A and GSTR-2B with their own purchase records. Any inconsistency identified during this process necessitates appropriate corrections or adjustments in their GSTR-3B (monthly summary return) or GSTR-1 (outward supply) return.
The reconciliation can be performed using an advanced GSTR filing tool that enables ITC claims to have factual tax liabilities, contributing to accurate and compliant GST reporting.
In brief, we understand the difference between GSTR-2A and GSTR-2B.
Factor | GSTR2A | GSTR2B |
Nature of Return | GSTR-2A is a dynamic return that constantly updates when invoices are uploaded by suppliers. | GSTR 2B is a static return that is updated every month. |
Frequency of Generation | GSTR-2A is generated in real time as suppliers submit GSTR-1. | GSTR-2B is auto-generated on a monthly basis. |
Source of Information | GSTR 2A has sources of information from GSTR-1/IFF, GSTR-5, GSTR – 7 (GST -TDS), GSTR – 6 (ISD), GSTR – 8 (GST -TCS) | GSTR 2B has sources of information from GSTR- 1/IFF, GSTR-5 (Non-Resident) GSTR – 6 (ISD) |
Additional Information | GSTR-2A provides a basic overview of ITC based on GSTR-1 data. | GSTR-2B offers a more detailed and categorized breakdown of ITC. |
User Accessibility | GSTR-2A is available for real-time monitoring and reference during GSTR-3 preparation. | GSTR-2B is designed in a user-friendly format for easy comprehension and reconciliation. |
DISCLAIMER: The information provided in this article is intended for general informational purposes only and is based on the latest guidelines and regulations. While we strive to ensure the accuracy and completeness of the information, it may not reflect the most current legal or regulatory changes. Taxpayers are advised to consult with a qualified tax professional or you may contact to our tax advisor team through call +91-9871990777 or info@semantictaxgen.in.