High level flow of information from GSTR-2 to other returns: FAQs

FAQs on High level flow of information from GSTR-2 to other returns

1. Explain in detail the various actions that I can perform as a Receiver Taxpayer on the uploaded invoices that are auto populated in my Form GSTR-2 for a given tax period.

All B2B supply details uploaded by a supplier taxpayer will be displayed to the receiver taxpayer (you) on a near real time basis in his GSTR-2A/ GSTR-2. Once the supplier taxpayers file their Form GSTR-1/5 and due date of furnishing Form GSTR-1 is over, you can accept/delete/modify each and every invoice received from such supplier to prepare your Form GSTR-2. You can also choose to keep an invoice pending for action; pending invoices will be rolled over to next tax period return of the receiver taxpayer.

As a receiver taxpayer, you can also add B2B invoices in your Form GSTR-2 that have been missed by the supplier taxpayer. You can add these missed invoices after the due date of Form GSTR-1 (usually 11th day of M+1 onwards). You can add the invoices till the actual date of filing of Form GSTR-2.

2. What happens to a supplier’s invoice when I accept it in my Form GSTR-2?

Any such invoice from a supplier accepted by you in your Form GSTR-2 becomes part of your Form GSTR-2 Return and claimed credit would be posted upon GSTR-3 submission

Note: It is assumed that the supplier has filed Form GSTR-1/5 successfully since the invoice is available to you for action in your Form GSTR-2.

3. What happens to an invoice when I modify it in my Form GSTR-2?

The modified invoice becomes part of your Form GSTR-2 Return in its modified form.

Additionally, the modified invoice flows to the GSTR-1/ 1A/5 of the counterparty (in this case the corresponding supplier taxpayer) for acceptance/ rejection of the modification made by you.

Note: It is assumed that the supplier has filed Form GSTR-1/5 successfully since the invoice is available to you for action in your Form GSTR-2.

4. What happens to an invoice if I reject it in my Form GSTR-2? Does it flow to the GSTR-1A of the supplier?

The rejected invoices are auto-populated to the related supplier and will be available to him for acceptance of Rejection / amendment in his GSTR-1A/GSTR-1/5.

Note: It is assumed that the supplier has filed GSTR-1 successfully since the invoice is available to you for action in your GSTR-2.

5. What happens to invoices that I add in my Form GSTR-2 using ADD MISSING INVOICE feature? Do they also flow to the GSTR-1A of the respective supplier taxpayers?

There are two possible scenarios:

1. Supplier taxpayers have filed Form GSTR-1 – In this case, all invoices added by me (receiver taxpayer) will flow to the respective GSTR-1A of the supplier taxpayers where they can accept/ reject/ keep pending the invoices.
2. Supplier taxpayers have not filed GSTR-1 – In this case, all invoices added by me (receiver taxpayer) will flow directly to the respective GSTR-1 of the supplier taxpayers since they have not filed the same as yet. The Supplier can accept/ reject/ keep pending the invoices.

6. Do I need to take action on every outward supply mentioned by supplier taxpayers in their Form GSTR-1 while filing my GSTR-2?

Yes, you need to take action on every outward supply mentioned by your supplier taxpayers in their valid Form GSTR-1 of the same period or previous period which are available in his GSTR-2A/2 for the purpose of filing your Form GSTR-2. The taxpayer can take the action of keeping pending an invoice which has not been received by the recipient in the concerned tax period. The invoices kept pending are rolled over to the next tax period GSTR-2A/2.

7. What happens if the ITC claimed by me in lieu of inward supplies is more than the tax declared by the supplier for the same supply or if the outward supply is not declared by the supplier at all?

In such cases, where there is a discrepancy between the tax paid by the supplier taxpayer and the credit claimed by the receiver taxpayer, a mismatch report is generated that is communicated to both the supplier and receiver, and is also available to the concerned jurisdictional tax officer(s).

If the supplier taxpayer does not rectify the amount as communicated in the mismatch report, then the amount of discrepancy shall be added to the output tax liability of the recipient in their return for month M+2 where M is the tax period. The recipient will also pay interest at the prescribed rate on the amount of credit from the date of availing the credit till the date of addition to the output liability.

8. What happens if the supplier pays the tax amount, corresponding to an excess claim of ITC which was added to recipient’s output liability, as a result of the supplier’s non-declaration and payment of tax for the same supply? What will be impact on interest paid by the recipient on the amount which was added to the output tax liability of the recipient?

Such an action must be taken by the supplier before filing of return for the month September of the succeeding financial year or filing of the annual return GSTR 9 of the financial year in which the supply was made, whichever is earlier.

The recipient becomes eligible to reduce, from his output tax liability, the amount which was added as a result of non-declaration and payment of tax for the same supply by the supplier.

The interest paid by the recipient in this regard shall be refunded to the recipient by crediting the amount in the corresponding head of his electronic Electronic Cash Ledger. The amount of interest refunded shall not exceed the amount of interest paid by the supplier.

9. Can a receiver taxpayer add/ upload the invoices/ debit note for a date prior to the date of registration?

Pre-GST invoices cannot be added however Pre-GST debit/credit note may be added.

10. Can a taxpayer add invoices prior to the date of registration in GSTR-2?

A taxpayer cannot add invoices prior to his date of registration in GSTR-2 and claim credit.

11. What will be the impact on entries in Form GSTR-2 if a normal taxpayer gets converted into a compounding taxpayer?

Once a normal taxpayer gets converted into a compounding taxpayer, the invoice related data entered in Form GSTR-2 (after the date of conversion) can only be for invoices/ documents dated prior to the date of conversion.

12. Will there be a system check for duplication of an ITC claim?

Yes, the system will check for the duplication of an ITC claim. The duplication check of an invoice will be at the GSTN Supplier, Invoice Number, and Financial Year level. This check will be performed at the time of data validation before filing the Form GSTR-2.

In case of duplicate invoices, system will display an error message. Non-duplicated invoices will be added to the return post validation.

13. Can I modify or reject a previously accepted invoice received from a supplier taxpayer after I file my Form GSTR-2?

No, it is not possible to modify or reject (delete) an invoice once you have accepted it and filed your Form GSTR-2.

14. I accidently rejected an invoice received from a supplier taxpayer and filed my Form GSTR-2. Is there any way for me to accept the invoice now?

No. You are not allowed to revise your action post submission of GSTR-2

15. How can I avail credit for invoices which have been rejected by me accidentally in the filed GSTR-2?

As a recipient, I can request the supplier to either accept the rejection or amend the invoices rejected by me.

In case of acceptance of rejection, the invoice can be added by supplier as a new invoice or by the recipient as missing invoice.

In case of amendment of invoices, it will be populated to the recipient as modified invoices to accept/ reject the amendment.

16. Can I file my Form GSTR-2 for a given tax period (M) if I have not filed my GSTR-3 for the previous tax period (M-1)?

No, Form GSTR-2 for the current tax period cannot be filed if valid GSTR-3 of immediate preceding tax period is not filed.

17. Can I use the input tax credit I have claimed in my Form GSTR-2 even if my supplier/s have not filed their Form GSTR-1?

Yes, you can avail the credit claimed in Form GSTR-2 to discharge your liabilities. However, it is important to note that in the event of any reversal of ITC in future due to mismatch resulting from the fact that return is not filed or tax is not paid by the supplier, interest will be levied on the excess ITC claimed by a receiver taxpayer from the date of filing of GSTR-3 to the day the receiver taxpayer discharges the excess liability along with interest.

18. Can I rectify an error or omission that remained unmatched?

Yes, you can rectify an error or omission that remained unmatched in the return of the tax period in which mismatch report is communicated by the GST portal. Any other error or omission which does not involve any matching can be corrected in the return of the tax period in which it is noticed till the due date of the filing of the September return of the subsequent financial year or filing of the annual return of financial year related to the transaction, during which such an error or omission is noticed. You will be required to pay the full tax and applicable interest on the error/ omission in the return in which you are furnishing the details.

19. Can my Form GSTR-2 be revised?

Revision of declarations/ information in GSTR-2 is possible for submitted GSTR-2 only through amendment tables of subsequent tax period Form/ return.

20. Where can I see the ITC before accepting the invoice uploaded by the supplier?

You need to first click on Edit button to see the system calculated ITC. Click back and then accept it.

Or else, you can click on Save button to change the status to accepted.

21. Is there any way to differentiate between invoices on which action can be taken?

There is no way to differentiate between invoices on which action can be taken. You need to manually select and check if action can be taken on the invoice.

22. Can I change the status from modify, accept, reject any number of times till submission?

You can change status of the invoice from modify, accept, reject any number of times till submission. However, once the invoice has been modified and you wish to revert to original details, you need to first Reject the modified invoice. The status would now be changed to Rejected with original details. Same can be accepted now.