With the introduction of GSTR-2B in 2020, the identification of documents for taxpayers has become much easier. It is a feature available to all taxpayers that include casual, normal, and Special Economic Zone or SEZ taxpayers. Several amendments have been made to it since its introduction to polish its purpose. Keep reading to know about GSTR-2B, how to file it, and its benefits in detail.

GSTR-2B is a newly introduced auto-generated Input Tax Credit (ITC) system. It was introduced with the intent of making ITC tax claims simple and less time-consuming for taxpayers. It is mandatory for taxpayers to download their statements on the 14th of every month before filing their ITC returns. This statement is generated monthly and is unchanged for a specified time.

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It contains records of Input Tax Credit on purchases that have been made by taxpayers. Mentioned below are the contents of the GSTR-2B:

• Every section includes a summary statement and shows 'ITC Available' and 'ITC Not Available'.
• Each section with an Advisory that specifies the actions that should be taken by taxpayers.
• Details are sorted according to the documents which include credit notes, debit notes, invoices, etc. These files can be viewed or downloaded as and when needed.
• Advisory for generation and use of GSTR-2B along with the cut-off dates.

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Apart from that, the GSTR-2B form is divided into 2 categories:

1. ITC is Available

Part A of this section consists of details regarding inward supplies, credit-debit notes, or CDN. Further, these details include amendments and import of goods that are divided into four parts:

• ITC is supplied by registered taxpayers.
• ITC for Input Service Distributor or ISD.
• For reverse supplies, ITC is applied to inward supplies.
• Import of goods.

2. ITC is Not Available

Part A of this section includes details of credit and debit notes and invoices. This may also include amendments all of which are divided into 3 parts:

• Details of ITC supplies from registered people.
• On reverse change, ITC applied for inward supplies.
• ITC from ISD.

Part B of this section includes details of CDN and amendments mentioned under the ‘Others’ section.

It is an auto-generated system that collects auto-populated data based on documents like GSTR 1, GSTR 5, and GSTR 6 submitted by the suppliers. Therefore, there is no additional filing process for GSTR-2B.

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Mentioned below are the features of GSTR-2B:

• It Remains Unchanged: GSTR-2B is a static statement and changes at its specified interval.
• Segregates Input Tax Credit (ITC): The Input Tax Credit is divided into two parts that are namely available and not available. The details that are reflected in the section ‘ITC Available’ are also reflected in the GSTR 3B section. In case the taxpayer has been wrongly charged for an intra-state supply of goods, or if the ITC has become void, it will not be available for the taxpayer to claim. Such instances are fairly common when the supply address and the supplier’s state are the same, but the recipient is from another state.
• Provides Information About Imports: GSTR-2B provides details about the imports carried out by the units of the Special Economic Zones and Customs.
• Helps to View the Advisory: A ‘View Advisory’ option is available for this section. With the help of this taxpayers can find the necessary action that they need to take regarding the specific section.
• Provides Maximum Convenience: It provides several benefits to taxpayers. The statement can be viewed or downloaded as per the need. It also comes with an option to save the data in both Excel and Pdf format. The taxpayers receive monthly notifications via SMS and E-mail regarding the generation of their statements.
• Shows Details As-Per the Supplier: Taxpayers have the liberty to view the details as per the supplier for each month.

The benefits of GSTR-2B are as follows:

• It helps in making the process of filling GSTR 3B simple and less time-consuming.
• This statement is trusted to have minimum errors in it and provide accurate results.
• This statement provides details regarding sales. Taxpayers can view the details or download them for the records as per their needs.

1st February 2022

• Taxpayers will not be allowed to claim the Input Tax Credit or ITC if it is restricted in the GSTR-2B.
• The time limit has been revised for claiming ITC on debit notes and invoices of a financial year.
• Section 38 has been restructured. It now provides guidelines regarding the time, conditions, restrictions, and manner of claiming ITC. It has also removed the process of two-way communication in filing GST returns. Further, it states that information regarding eligible and ineligible ITC claims will be provided to the taxpayers.
• Sections 42, 43, and 44 that provided information on the claiming process of ITC, its matching, and reversal are discarded. 

29th December 2021

• CGST Rule 36(4) has been modified. It will now remove the 5% ITC levied on the ITC if it exceeded that in GSTR-2B. From 1st January 2022, businesses could avail ITC if only the suppliers reported it or if it appeared in their GSTR-2B.

The introduction of GSTR-2B was intended to make the process of GSTR filling easier for taxpayers. This new system in totality is a useful feature that provides accurate details and is not time-consuming.

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