FORM GSTR-2B – Advisory

1. Terms Used:

i. ITC – Input tax credit

ii. B2B – Business to Business

iii. ISD – Input service distributor

iv. IMPG – Import of goods

v. IMPGSEZ – Import of goods or inward supply of goods from Special Economic Zones

2. GSTR-2B is an auto-drafted ITC statement which will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR-1/IFF, GSTR-5 (non-resident taxable person) and GSTR-6 (input service distributor). The statement will indicate availability of input tax credit to the registered person against each document filed by his suppliers.

3. GSTR-2B is a static statement and will be made available for each month on the 14^thday of the succeeding month. For example, for the month of July 2020, the statement will be generated and made available to the registered person on 14^th August 2020.

4. GSTR-2B for a month (M) will contain the details of all the documents filed by his suppliers in their –

• Respective monthly GSTR- 1 between the due date of furnishing of monthly GSTR- 1 for previous month (M-1) to the due date of furnishing of GSTR-1 for the current month (M). For example, GSTR-2B generated for the month of Jan, 2021 will contain the details of all the documents filed by suppliers in their monthly GSTR- 1 from 00:00 hours on 12^thJan, 2020 to 23:59 hours on 11^th Feb 2020.
• Respective quarterly GSTR-1/IFF, GSTR-5 and 6 between the due date of furnishing of quarterly GSTR-1/IFF, GSTR-5 and 6 for previous month (M-1) to the due date of furnishing for the current month (M). For example, GSTR-2B generated for the month of Jan, 2021 will contain the details of all the documents filed by suppliers in their quarterly GSTR-1/IFF, GSTR-5 and 6 from 00:00 hours on 14^thJan, 2021 to 23:59 hours on 13^th Feb 2021.

5. There may be instances where the date of filing of GSTR-5 (Non-Resident taxable person) and GSTR-6 (Input Service Distributor) may be later than the date of generation of GSTR-2B. Under such circumstances, taxpayers are advised to avail input tax credit on self-assessment basis. However, when such document gets filed and reflected in their next GSTR-2B, taxpayers shall not avail such input tax credit.

6. GSTR-2B also contains information on import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / Developers. This is made available from GSTR-2B of August 2020.

7. It may be noted that reverse charge credit on import of services is not a part of this statement and will be continued to be entered by taxpayers in Table 4(A)(2) of FORM GSTR-3B.

8. The documents furnished by the supplier in any GSTR-1/IFF, GSTR-5 and 6 would reflect in the next open GSTR-2B of the recipient irrespective of the date of issuance of the concerned document. For example, if a supplier furnishes a document INV- 1 dt. 15.05.2020 in the FORM GSTR- 1 for the month of July, 2020 filed on 11^th August 2020, the details of INV- 1, dt. 15.05.2020 will get reflected in GSTR-2B of July 2020 (generated on 12^th August 2020) and not in the GSTR-2B of May, 2020.

9. Table 3: ITC Available Summary captures the summary of ITC available as on the date of generation of FORM GSTR-2B. It is divided into following parts:

A. Part A captures the summary of credit that may be availed in relevant tables of FORM GSTR-3B.

B. Part B captures the summary of credit that shall be reversed in relevant table of FORM GSTR-3B.

10. Table 4: ITC not available summary captures the summary of ITC not available as on the date of generation of FORM GSTR-2B, under the specific scenarios detailed at Sr. No. 11 below. Credit reflected in this table shall not be entered in Table 4(A) of FORM GSTR-3B.

11. Credit shown as “ITC Not available” in Table 4, Part A covers the following scenarios only: –

i. Invoice or debit note for supply of goods or services or both where the recipient is not entitled to input tax credit as per the provisions of sub-section (4) of Section 16 of CGST Act, 2017.

ii. Invoice or debit note where the Supplier (GSTIN) and place of supply are in the same State while recipient is in another State.

However, there may be other scenarios for which input tax credit may not be available to the taxpayers and the same has not been generated by the system. Taxpayers are advised to self-assess and reverse such credit in their FORM GSTR-3B.

12. Taxpayers are advised to ensure that the data generated in GSTR-2B is reconciled with their own records and books of accounts. Taxpayers shall ensure that

i. No credit shall be availed twice for any document under any circumstances.

ii. Credit shall be reversed as per GST Act and Rules in their FORM GSTR-3B.

iii. Tax on reverse charge basis shall be paid.

13. Details of all the documents in GSTR-2B is made available online as well as through download facility.

14. There may be scenarios where a percentage of the applicable rate of tax rate may be notified by the Government. A separate column will be provided for invoices / documents where such rate is applicable.

15. Cut-off dates considered for GSTR-2B is based on the supplier profile during the return filing period.

16. Quarterly GSTR-2B is a consolidation of monthly GSTR-2Bs of the quarter. You may refer quarterly system generated GSTR-3B PDF to view break-up of positive and negative values.

17. Section wise instructions of FORM GSTR-2B Summary:

(Republished with Amendments)