Businesses around India have had to adapt to a range of changes since implementing the Goods and Services Tax in 2017. A range of various forms, each of which serves a special purpose under the GST system, were also established. One of these forms is GSTR 2 and here, you can get all the details about GSTR 2 Return Filing – Details of Inward Supplies, How to File GSTR 2?
What is GSTR-2?
The GSTR-2 is a monthly GST Return Filing that lists all of your purchases for the previous month. The GSTN portal contains GSTR-2A data on the sales returns (GSTR-1) on purchases from authorized sales agents or the companies having GSTR. Before you return, you can review the information, update it if required, and add any non-self-supplied information.
If a person is changing the GSTR-2A information, the seller is alerted and given the chance to change their report with a GSTR-1A form.
What is the relationship between GSTR 2A and GSTR 2?
When submitting GSTR 2, companies can adhere to GSTR 2A. The first document is automatically prepared and available for all registered companies. It is centered on GSTR 1 and 5 data that dealers sell in detail.
If GSTR 2A information is erroneous, it can be corrected by taxpayers. The sellers of the company will then be informed of the adjustments that have been made. As a consequence, these traders must repair any differences when the information is valid.
GSTR 1 and 2 must be in agreement. An organization cannot claim Input Tax Credit (ITC) benefits on its expenditures if the details are contradictory.
What Are the Prerequisites for Filing GSTR 2?
When uploading this document on the GST portal, taxpayers must meet the following requirements:
- You must have GST Registration.
- The details contained in GSTR 2A must be verified by business people.
- You do not have a composition vendor or a unique ID number (UIN). You should not be one of those international taxpayers who are not residents.
- All purchase transactions, whether intrastate or interstate, require invoices to be kept on hand. It’s also important to have thorough invoices for purchases that are GST-free or don’t involve suppliers that aren’t subject to GST Return Filing.
- Information on the GST-2A can be requested from the GST website. To authenticate this cross-examined information, you must maintain accurate accounting for all transactions, including internal transactions, inter-state transactions, B to B, and even B to C.
- To authenticate the GST Return Filing using an EVC (electronic verification code) or a digital signature certificate, you’ll need an OTP from your registered phone (of class 2 or higher). You can also use an Aadhar-based e-sign to file your GST returns.
When should you file GSTR-2?
- The purchase information for a given month must be filed by the 15th of the following month. You will need to do so by 15 June, for instance, if you submit GSTR2 for May.
- To ease the transition to GST, the administration has shortened the GST Return Filing dates for the first two months, i.e. July and September 2017.
- The GSTR-2 for July 2017 is due on or before October 31, 2017.
- The GST council will announce the deadline for filing the GSTR-2 in August 2017.
How to File GSTR 2/ Process of filing GSTR 2
This form has a total of 13 sections that a taxpayer having GST Registration must fill out while filing GSTR 2. These are described further down this page —
- GSTIN – The 15-digit Goods and Services Identification Number for the company has to be completed. A unique number is GSTIN which is allocated after it is authorized under GST to each respective organization.
- Name of the taxpayer – This field is for the company’s legal identity and, if applicable, its trade name.
- Inward supplies of a registered taxpayer, excluding supplies which draw negative charges — it includes invoice information of all purchases and Inward supplies, saves those which welcome reverse charges. This section is automatically populated by GSTR 2A.
- Inward supplies on which tax is to be paid on reverse charge – The invoice details shall comprise all purchase transactions for which the company paid tax directly to the government.
- Capital goods and inputs acquired on a bill of entry from SEZ units or from outside the country – Taxpayers shall fill in the taxable details for all imports made within the fiscal period in this section at the time of filing GSTR 2.
- Corrections to details about inward supplies that were provided in returns for earlier tax periods — In this part, a taxpayer is capable of amending any kind of inaccuracy in GSTR 2 from a preceding tax period.
- GST-exempt/nil-rated supplies obtained from composition taxable persons, as well as other GST-exempt/nil-rated supplies, obtained – It must be provided with data of inter-and intra-state purchases relevant to the indicated financial transaction or organization.
- ISD credit — This section under GST Registration offers information on the ITC that an organization receives from the Input Service Distributor.
- TCS/TDS credit – The details should be included in this area when a taxpayer undertakes transactions about TDSs or sells items online using an e-commerce network.
- Advances paid and amended on the received supply reported in the consolidated statement – If the taxpayer had already, but received comparable invoices within the current fiscal period, paid advance charges on its supplies, such information should be provided here.
- Input tax credit reversal/reclamation – Details of the input tax credit (ITC), which are unable to be claimed under relevant conditions, are to be mentioned in this section.
- Adjustment of output tax in the event of mismatch/other circumstances – In the case of an enterprise paying the extra tax owing to corrections in the GSTR 3 of the preceding period, or a reduction in tax liability, they provide the required info.
- Inbound HSN supply summary – Tax filers should state in this area the HSN codes of all inbound supplies.
The approved firm signatories must sign a statement of truth at the end of the document.
For a particular month, the GSTR 2 due date is fixed on the 15th of the following month. To prevent interest fees and late sanctions from being imposed, companies must apply for GST Return Filing in advance. An interest rate of 18 percent per annum is to be paid the remaining late payment tax and the RS200 day fee. It is important to be aware of all the details provided to guarantee that no issues with GSTR 2 are present.
GSTR 2 is a thorough return that requires precise information. To provide the necessary details in such a return, appropriate billing and verification would be essential. GSTR 1 also has a comprehensive review.
Moreover, If you want any other guidance related to GST Return Filing, please feel free to talk to our business advisors at 8881-069-069.
Download E-Startup Mobile App and Never miss the freshest updates narrating to your business.