GSTN has enabled Form GSTR 2B in the GST Portal. The Taxpayer can log in with there login credentials then go to F.Y 20-21 for July 2020, the Form GSTR-2B is available on the Portal. The GST Council, in its 39th meeting held March 2020, had recommended to adopt and implement the incremental approach of linking the present system of filing of GSTR-3B and GSTR-1 and other significant changes like enhancements in GSTR-2A and its linking to GSTR-3B. One such enhancement that the Council recommended was the introduction of an auto-drafted input tax credit (ITC) statement which would aid in assisting/determining the input tax credit that is available for every taxpayer.
Form GSTR-2B is going to be such an auto-drafted 1TC statement which will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR-1, 5 (non-resident taxable person) and 6 (input service distributor). Presently, GSTR-2A is a statement which is dynamic in nature and it changes as and when suppliers used to file their GSTR-1. But in GSTR 3B, every taxpayer needs freeze their ITC figure by 20th of the Month and discharge their tax liability in case, if required. Therefore, there is always a need to have a static report from where both the Tax Payer and Departmental People have an idea of Input Tax Credits eligible to be availed as on the date of filing GSTR-3B. GSTR 2B is such a static statement and will be made available for each month, on the 12th day of the succeeding month. It is expected that GSTR-2B will help in reduction in time taken for preparing a return, minimizing errors, assist reconciliation & simplify compliance relating to filing of returns.
Key features in GSTR-2B which would assist taxpayers in return filing are as under:
i. It contains information on the import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units/Developers. This is not available with the release of GSTR-2B for the month of July and will be made available shortly.
ii. A summary statement that shows all the ITC available and non-available under each section. The advisory given against each section clarifies the action to be taken by the taxpayers in their respective section of GSTR-3B;
iii. Document-level details of all invoices, credit notes; debit notes etc. are also provided both for viewing and download;
Taxpayers can access their Form GSTR-2B through: Login to GST Portal > Returns Dashboard > Select Return period > GSTR-2B.
Therefore, the process of ITC Reconciliation every month shall be on the basis of GSTR 2B in future. The probable steps that we may follow:
1. Download GSTR 2B on 12th of Every Month once it is available in the portal
2. Prepare the ITC Statement as per accounts before hand so that reconciliation can be done faster.
3. There may have invoices which are shown in GSTR 2B by supplier but the same is not booked in accounts due various reasons i.e GRN is pending, Invoices not received from Vendor etc.
4. There may have some invoices having invoice date of prior months, but the same is booked in the current month and not appearing in the GSTR-2B in the current month.
All such adjustments needs to be done with the figures appearing in GSTR 2B to reach to the ITC figures as per accounts. We have to remember that GSTR 2B is merely a statement to enable us to easily reconcile our data with a static report which will not change in future. But availability of ITC shall always be guided through Section 16 where four basic conditions have been provided, namely-
1. Receipt of Tax Invoices/ Debit Notes
2. Receipt of Goods & Services
3. Supplier has paid the Tax Charged on the Invoice and
4. Tax Payer has filed the return
Therefore, if the aforesaid four conditions are satisfied, then ITC can very well be availed by the Tax Payers.