Saturday, August 29, 2020

CBIC Launches GSTR-2B (29th August 2020): Key Features

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

 

Download GSTR 2B Advisory 

 

 

 

 

 


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