prpri Attention- Return GSTR-3B is becoming more robust Attention GST Taxpayers, now, return GSTR-3B is becoming more robust

Arjun (Fictional Character): Krishna, What’s new in GSTR-3B data finalisation process of GSTN on Inward and Outward Side?

Krishna (Fictional Character): Arjuna, it seems that after September 2020, there will be complete changeover of GSTR-3B filing process on GSTN. On inward side, new GSTR 2B will so as to reconcile and match ITC as per GSTR-3B & GSTR-2A. On outward side, GSTR-1 figures may be reflected in GSTR-3B, so as to reconcile and match tax liability.  Be Thus, GSTR-3B will become more robust, & the taxpayers need to be more attentive.

Arjun (Fictional Character): Krishna, On ITC side, what is GSTR-2B? How is it different from GSTR-2A?

Krishna (Fictional Character): Arjuna, 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 Form GSTR-1, GSTR-5 or Form GSTR-6 (filed by ISD). It is a summary of ITC available as on 12th of succeeding month, and is divided into credit that can be availed and credit that is to be reversed, whereas GSTR-2A is a purchase-related tax return consisting of a list of all of the invoices from the various sellers during the month. GSTR-2A is a dynamic statement, as it gets updatedon day-to-day basis, whereas GSTR-2B remains static or constant, &does not change based on future actions of the supplier. Let’s discuss about the practical implications of GSTR-2B in detail.


Arjun (Fictional Character): Krishna,how will be GSTR-2B be generated?

Krishna (Fictional Character): Arjuna, It consists of all documents filed by suppliers/ISD in their GSTR-1, till 11th day of the current month, which will reflect in GSTR-2B in succeeding month.

The details filed by supplier in his GSTR-1 would reflect in the next open GSTR-2B of the recipient irrespective of supplier’s/ISD’s date of filing. For e.g, if a supplier files a document INV-1 dt. 15.07.2020 in his GSTR-1 of July month, on or before 11th August, it will get reflected in GSTR-2B of July (generated on 12th August). If the document is filed in GSTR-1 of August month, the document will be reflected in GSTR-2B of August (generated on 12th September).

Arjun (Fictional Character): Krishna, what are the peculiarities of this new GSTR-2B?

Krishna (Fictional Character): Arjuna, this form also contains information on imports of goods from the ICEGATE system which will be made available in GSTR-2B, 12th September 2020 onwards. Reverse charge credit on Import of Services is not a part of this statement and need to be entered by taxpayers in Table 4(A)(2) of FORM GSTR-3B, is to be noted. While filing GSTR-3B, taxpayers can now ensure that no credit is taken twice, credit is reversed as per law, & tax on RCM basis is paid; by reconciling data generated in Form GSTR-2B. A major benefit for taxpayers will be availability of input tax credit for the taxpayers on board which will further guide them for a better reconciliation & filing GSTR-3B.

Arjun (Fictional Character): Krishna, what’s the new update on outward side of GSTR-1 & GSTR-3B matching?

Krishna (Fictional Character): Arjuna, once the taxpayer files GSTR-1, which contains information of outward supplies, the same will be reflected in GSTR-3B of the taxpayer. Hence, reconciliation & matching of tax liability on outward side will be done. This is one of the very significant update in the GST returns system, as GSTR-3B is made more precise, with a vision of minimising errors & mismatches in return filing, assisting long term reconciliation of GSTR-1 & GSTR-3B.

Arjun (Fictional Character): Krishna, what should a taxpayer learn from this?

Krishna (Fictional Character): Arjuna, taxpayer now will have to be more cautious while claiming ITC & filing GSTR-1. This would prove to be of   great assistance to the taxpayers in filing of GSTR-3B, as it is now integrated with ITC details available from GSTR-2B & tax with GSTR-1. Actually, this should have been done since the introduction of GST system itself. It is like “Der Aaye, Par Durust Aaye”. Hope that GSTN will become more mature, & errors will not arise in new GSTR-3B filing process. This will become more smooth when e-invoicing will be implemented. The dilemma of “TOO BE (2B) OR NOT TO BE” in GSTR-3B may get resolved.

Author Bio

Qualification: CA in Practice
Company: R.B. Sharma and Co
Location: Aurangabad, Maharashtra, India
Member Since: 27 Jan 2018 | Total Posts: 330
1. Vice-Chairmen of WIRC of ICAI for the year 2015-2021. 2. Youngest Chairman of Aurangabad Branch of WIRC of ICAI in 2002. 3. Author of Popular Tax articles series based on Krishna and Arjuna conversation i.e “KARNITI” published in Lokmat on every Monday. Till date 335+ weekly articles ha View Full Profile

My Published Posts

More Under Goods and Services Tax


  1. Ashok Rao says:

    People are still not filing their returns on time and some are not filing GSTR1 at all. Also quarterly returns and monthly returns further add to the confusion as the ITC do not tally and honest taxpayer does not get full ITC credit. Stricter implementation and punishment for non filers is required.

  2. Pranay Dhanpal says:

    Sir I am a retailer in clothing where I owe to 3% ,5%,12% and few18% products.My suppliers vary from software based billing to manual billing.I hold all physical bills with me which I claim in my GSTR ITC every month.The challenge is that sir my GSTR 2A will not get uploaded by my suppliers in respective month of their selling goods to me,as a result of which my ITC claim and GSTR 2A has great differences.In the whole GST system there is no such dead line or penalty or any kind of punishment to the people who will not upload their GSTR1 which is GSTR 2A to we like dealers,if they don’t file monthly or quarterly.What should be the change in system is deadlines and pressure on Filing of GSTR 1 ,so that we like genuine tax payers of GST where I paid more than 1.5 cr last financial year can have a healthy business and prosperity.Finally what should be the factor to change in giving a relaxation to such ITC difference.Kindly take this into notice of GSTR PANEL BOARD.Having no restriction on filing GSTR1 is causing greatest HUCUSS Sir.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

July 2021