The GST introduced two new forms for the purposes of GST Return Filing, GSTR 2A and GSTR 2B, both of which are automatically populated as per Goods and Service Tax rules and regulations. Here, we’ll compare and contrast GSTR 2A and GSTR 2B which is extremely important for taxpayers to know.
What is GSTR -2A?
GSTR 2A, a dynamic tax return relating to purchases, is generated automatically by the GST site. When a vendor submits his GSTR-1 form for GST Return Filing, the details are recorded in GSTR 2A. To figure out what was purchased in a particular month, it looks at the seller’s GSTR-1 form. As a GST-registered purchaser, you can use the GSTR-2A to provide input tax credit information while completing forms GSTR-3B and GSTR-9. In simple words, Form GSTR-2A is an automatically generated return. This return indicates the inbound supplies (purchase-related transactions) that happen in a given context.
What is GSTR-2B?
For regular GST taxpayers, the GST system has a static monthly auto-drafted statement known as GSTR-2B. (whether or not they have opted into the QRMP Scheme under GST). While GSTR-2A and GSTR-2B both detail the Input Tax Credit (ITC) that may and cannot be claimed each month, GSTR-2B does so for a fixed amount of time. When a GSTR-2B for a given month is retrieved from the GST (Goods and Service Tax) site, the information included inside it will not have changed, even if the supplier has made changes in subsequent months.
Understand the difference in GSTR-2A and GSTR-2B
Nature of Statement
GSTR-2A is dynamic as its changes in tandem with documents uploaded by the suppliers whereas GSTR-2B remains static. The reason for being static is that the GSTR-2B for a single month cannot be subjected to change based on future actions of the supplier.
Eligible/ In-Eligible Credit
On the one hand GSTR-2A doesn’t provide bifurcation and on the other hand, GSTR-2B provides bifurcation.
Source of Information
Source of Information for GSTR-2A are GSTR-1/IFF, GSTR-5 (Non Resident), GSTR – 6 (ISD), GSTR – 7 (GST –TDS), GSTR – 8 (GST –TCS) in comparison with GSTR-2B’s sources are GSTR- 1/IFF, GSTR-5 (Non Resident), GSTR – 6 (ISD).
Major Difference in GSTR-2A and GSTR-2B
ITC shall be shown in the GSTR – 2A for the period before the one in which the return was filed by the supplier. ITC will be reflected in the current period’s GSTR – 2B when the Supplier submits a return for any period in the past.
Know about GSTR-2A and GSTR-2B Reconciliation
Invoices for purchases were not matched up with GSTR 2A/2B data prior to filing GSTR 3B returns, as per the available evidence. Therefore, When filing GSTR 3B Returns, discrepancies in data might necessitate a GSTR 2A reconciliation, as can the disqualification of a business from receiving ITC.
The points above summarises the key distinctions between GSTR-2A and GSTR-2B. In brief, because of its ever-changing nature, GSTR-2A requires regular reconciliation. However, GSTR-2B is an exception to this rule.
Moreover, If you want any other guidance relating to GST Return Filing Online or GST Registration Online, please feel free to talk to our business advisors at 8881-069-069.
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