GSTN Launches GSTR-2B Statement For Easy ITC Reconciliation

The Goods and Service Tax Network (GSTN) has launched a new statement on the GST portal called GSTR-2B. This auto-drafted statement will have the month-wise details of input tax credit (ITC), based on data furnished by the taxpayer’s suppliers in their GSTR-1, GSTR-5 and GSTR-6 returns. The ITC available and not available to the taxpayer, will both be furnished in the GSTR-2B statement.

Previously, taxpayers could find their ITC information in their GSTR-2A statement. This was a dynamic form in which data was continuously updated as per returns filed by the suppliers. The newly released GSTR-2B statement is a static form, generated monthly on every 12th of the month following the return period. It will contain all the ITC data between the two GSTR-1 return-filing due dates. 

Form GSTR-2B is expected to benefit the taxpayers in several ways. This statement will be useful for taxpayers to reconcile their ITC data every month before filing their GSTR-3B return. It will help taxpayers avoid taking credit twice on any particular document, reverse credit as per the GST Law, and pay tax on a reverse-charge basis wherever applicable.

Also Read: Does India’s GST System Need a Complete Overhaul?

Form GSTR-2A also did not contain information about the import of goods, but in Form GSTR-2B, this data will be made available. The data will be synced with ICEGATE (Indian Customs Electronic Gateway), to provide details of imports made, including imports from Special Economic Zones and Developers. GSTR-2B for July 2020 will not contain details of imports, however, from August 2020 onwards, details of imports will be reflected.

Taxpayers who wish to access their GSTR-2B can login to the GST portal, and go to their returns dashboard. On their return dashboard, they will need to select the relevant return period and after that, click on the GSTR-2B statement to view it. The entire report can be downloaded in a PDF format, or even specific sections of the statement can be viewed or downloaded, if necessary.

For any clarifications/feedback on the topic, please contact the writer at athena.rebello@cleartax.in

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