The
government has decided to continue the existing GST (Goods and Services Tax)
return filing system for the time being. The new GST return filing system
with forms ANX-1, ANX-2, RET-1 and RET-2 as proposed by the government for the
launch has been put on hold until further notice.
In place of launching the new GST
return filing system, the government will try to introduce advanced features to
the older system.
SOME DECISIONS THAT GST COUNCIL TOOK IN THE 39TH GST
COUNCIL MEETING DATED 14TH MARCH 2020
In
order to plug the tax evasion it was decided to link the details of the
statement of outward supplies in FORM GSTR-1 to the liability in FORM GSTR-3B.
This would be followed by the linking of the input tax credit in FORM GSTR-3B
to the details of the supplies reflected in the FORM GSTR-2A. In order to
tackle evasion and preventing the gaming of the system, implementation of Aadhaar
authentication and spike rules would also be initiated.
A measure to tackle ITC related issue that Council recommended was
introduction of an auto- drafted input tax credit (ITC) statement which would
aid in assisting/ determining the input tax credit that is available for every
taxpayer.
The government has launched form GSTR 2B for the Input Tax Credit. The
form will help the government as well as the assessees in matching the input
and output of ITC in forms GSTR 3B, GSTR-1, and GSTR 2A, accordingly.
WHAT IS GSTR2B???
GSTR -2B an auto-drafted ITC statement
which will be generated for every register person on the basis of the
information furnished by his supplier in their respective GSTR-1, 5(non
resident taxable person) and 6 (input service distributor) it is static
statement and will be made available for each month on the 12th day of
succeeding month.
GSTR-2B will be available from July
2020 onwards. It can be generated by recipient taxpayers once a month on the
12th for the previous month. For instance, GSTR 2B for July 2020 can be
accessed on 12th August 2020
KEY FEATURES OF GSTR 2B
1) It contain information on import of
goods from the ICEGATE sytem including inward supplies of goods Received form
Especial Economic Zone Unites /Developers
2) Taxpayers can now reconcile data
generated in Form GSTR-2B, with their own records and books of accounts. Using
this reconciliation, they can now file their Form GSTR 3B and they can ensure
that no credit is taken twice,credit is reversed as per law, & tax on
reverse charge basis is paid.
3) It consists of all documents filed
by suppliers/ISD in their Form GSTR-1, 5 & 6, between 00:00 hours on 12th
day of preceding month to 23:59 hours, on 11th day of current month. Thus,
statement generated on 12th of August will contain data from 00:00 hours of
12th July to 23:59 hours of 11th
4) It also contains information on
imports of goods from the ICEGATE system including data on imports from Special
Economic Zones Units / Developers. Reverse charge credit on import of services
is not part of this statement and need to be entered by taxpayers in Table 4(A)
(2) of FORM GSTR-3B.
5) The statement will clearly show
document-wise details of ITC eligibility.The contents of GSTR-2B is as follows:
a) Summary statement showing ITC
available and non-available for every section
b) Advisory for every section that
clarifies the kind of action that taxpayers must take.
c) Document-wise details such as
invoices, credit notes, debit notes, etc. to view and download.
d) Cut-off dates and advisory for
generating and using GSTR-2B.
e) Import of goods and import from SEZ
units/developers (available from GSTR 2B of August 2020 onwards).
NOTABLE DIFFERENCES BETWEEN GSTR 2A AND GSTR 2B
1) GSTR 2A dynamic, as it changes from
day to day, as and when the supplier uploads the documents whereas GSTR 2B
remains static or constant, as the GSTR-2B for one month cannot change based on
future actions of the supplier.
2) Source of Information for GSTR 2A is GSTR-1, GSTR-5 (NR), GSTR-6 (ISD),
GSTR-7 (TDS), GSTR-8 (TCS) whereas source of Information for GSTR 2B is GSTR-1,
GSTR-5, GSTR-6, ICEGATE system
3) GSTR 2A does not contains details of
ITC related to Import of Goods whereas GSTR 2B contains ITC on import of goods as
obtained from ICEGATE system.
This was a small write up to explain
about recently released GSTR 2B. Since, this is the first time that the
statement is being introduced, by taxpayers are advice to refer to GSTR -2B for
the month of July 2020.
All taxpayer as advised to view that
detailed advisory relating to GSTR -2B on the common portal before using
the statement .
The Taxpayer can assess their GSTR-2B
through: Login to GST Portal >Return Dashboard >Select Return period
>GSTR2B
