What is GSTR 2?

 

GSTR 2

According to GST law, every registered taxable person is require to submit “Return for Inward Supplies” in GSTR 2. The entries in GSTR 2 shall be mentioned by the buyer from 12th to 15th of the succeeding month. Adjustments, if any, is allowed to the seller in GSTR 1A on the 16th and 17th of the succeeding month after the buyer has uploaded his GSTR 2.

The government has notified new GST Return formats in this regard and removed the mandatory requirement to quote HSN codes for goods and SAC codes for services in each table. The GST Return Formats have been updated to ease the process and simplify compliance for taxpayers under GST.

GSTR 2 has a total of 13 headings, the taxable person need not worry as most of these will be pre-filled. But we need to understand certain terms:

  1. GSTIN – Goods and Services Taxpayer Identification Number
  2. UIN – Unique Identification Number
  3. UQC – Unit Quantity Code
  4. HSN – Harmonised System of Nomenclature
  5. SAC – Services Accounting Code
  6. POS – Place of Supply of Goods and Services
  7. B2B – From one registered person to another registered person
  8. B2C – From registered person to unregistered person

Process of Filing GSTR 2




gstr 2

  • Step 1: A taxpayer require to login at GST Portal by using his user ID & Password.
  • Step 2:After Successfully login, user can see his dashboard.
  • Step 3: Now click on “Service Menu” and then click on Returns and you will reach at GST Return Page This section shows all the services available on the GST portal. You can select one to proceed further.GSTR 2 Filing Particulars

Particulars to be filed under GSTR 2GSTR 2 Details

  1. GSTIN – Each taxpayer will be allotted a state-wise PAN-based 15-digit Goods andServices Taxpayer Identification Number (GSTIN). A format of proposed GSTIN has been shown in the image above. The identification of taxpayer will be auto-filled at the time of return filing in future.
  2. Name of the Registered Person – Name of the taxpayer, will be auto-filled at the time of logging into the common GST Portal. Trade Name, if any, should be separately provided.
  3. Inward supplies received from a registered person other than supplies attracting reverse chargeGSTR 2 Table 3
  • The recipient tax payer has option to act on the auto-populated information from GSTR 2A. He can accept, reject, modify or keep the transaction pending for action.
  • After taking the action, recipient taxpayer will have to mention whether he/she is eligible to avail input tax credit or not. If he/she is eligible, then the amount of credit against the tax mentioned in the invoice needs to be filled.
  • The recipient taxpayer can also add invoices those are not uploaded by the counter party supplier. In the case of inter-state supplies, only IGST would be filed. Similarly, in the case of intra-state supplies, CGST and SGST would be filed.

      4. Inward supplies on which tax is to be paid on reverse chargeGSTR 2 Table 4

  • Table 4A to be auto populated.
  • In case of invoices added by recent tax payer, Place of Supply to be captured always. But in case, supplies received from registered person, is required only if the invoices is different from the location of the recipient.
  • Recipient will have the option to accept invoices auto populated as well as add the invoices, related to reverse charge only when the Time of Supply arises in terms of the Act.
  • Recipient tax payer is required to declare in column no. 12 whether the inward supplies are inputs, inputs services or capital goods (including plant and machinery).

      5. Inputs/capital goods received from overseas or from SEZ units on a Bill of Entry.GSTR 2 Table 5

  • In table no. 5, details relating to Import of Goods/Capital Goods from outside India as well as supplies by an SEZ unit to be reported rate-wise by recipient tax payer.
  • Recipient to provide for Bill of entry information including 6-digits port code and 7-digits bill of entry number.
  • Taxable value: Assessable value for custom purposes and computation is based on IGST. In case of imports, the GSTIN would be of recipient tax payer

      6. Amendments to details of inward supplies furnishedGSTR 2 Table 6

  • Table 6: amendment of information, rate-wise, provided in earlier tax periods in table no. 3, 4 and 5 and also original or amended information of debit or credit note.
  • GSTIN not to be provided in case of export transactions.

      7. Supplies received from composition taxable person and other exemptGSTR 2 Table 7

  • Captures information on a gross value level.

      8. Input Service Distributor credit receivedGSTR 2 Table 8

  • Contains 2 columns as 8A: ISD Invoice and 8B: ISD Credit note

      9. TDS and TCS credit receivedGSTR 2 Table 9

  • Table No.9 will be auto populated
  • Sales return and net value columns are not applicable in case of TDS in table 9.
  • Recipient can claim less ITC on an invoice depending on its use i.e. whether for business purpose or non-business purpose.

     10. Consolidated statement of advances paid/Advance adjustedGSTR 2 Table 10

  • Information of advance paid related to reverse charge supplies and the tax paid on it including adjustments against invoices issued.

     11. Input tax credit reversal/reclaimGSTR 2 Table 11

     12. Addition and reduction of amount in output tax for mismatch and other reasonsGSTR 2 Table 12

  • Additional liability due to mismatch as well as reduction in output liability due to rectification of mismatch on account of filing GSTR 3 of immediately preceding tax period.

     13. HSN-wise summaryGSTR 2 Table 13

  • All inward supplies must be reported in this section categorised on the basis of HSN codes.

Conclusion

GSTR 2 is the comprehensive return where detailed information has to be furnished. Proper invoicing and documentation would be key feature to furnish the correct information in such return.

You can also get a detailed review on GSTR 1.

In case you are confused about GST as a business owner, feel free to consult the GST experts at LegalRaasta. You can get comprehensive assistance on GST Registration and GST Return Filing. You can also use our GST software for doing end-to-end GST compliance.