GSTR-2B: Concept and Understanding

GSTR-2B is an auto-drafted introduced on the GST Portal for the regular taxpayers (whether or not opted statement based on a new static month. Furthermore, it doesn't matter if the or not the taxpayer has opted for the QRMP scheme. This statement was implemented for the tax period of August 2020 onwards.

Introduction:

For each month, GSTR-2B would provide Input Tax Credit whether eligible or ineligible or both to the taxpayer, similar to GSTR-2A but it will remain unchanging and constant for a longer period. 

In other words, the data for GSTR-2B, remains the same without being changed by the suppliers in the later months with subsequent changes, whenever it is accessed on the GST portal for the month. 

The availability of GSTR-2B extends to all normal, SEZ and casual Taxpayers. It can be generated by the recipients on the basis of GSTR-1, GSTR-5 and GSTR-6 to be furnished by their suppliers.

The statement will reveal the details of ITC eligibility based on the documents. 

Benefits of GSTR-2B

The data in GSTR-2B is reported in such a way that enables taxpayers to conveniently reconcile ITC with their own records and books of accounts. It makes the identification of the documents easier and ensures the following:

✅ Against a particular document, ITC will not be availed twice by the taxpayer

✅ The input tax credit will be reversed whenever required according to the GST Law.

✅ GST will be correctly paid for reverse charge in the case of applicable documents including both import and export services.

The statement displays the tables or columns of GSTR-3B under which the input tax credit of an invoice/debit note must be taken.