The ITC Form GSTR 2B is an auto-drafted statement made for every static month for the regular taxpayers which was introduced towards the GST portal. It was launched in the August 2020 tax period onwards. It basically provides for the tax credit that stands eligible for each month which is very similar to GSTR-2A but is subjected to changes that shall take place during a period. The GSTR-2B can be accessed via the GST portal for a month, the data entered will be stored without any changes but can be changed through subsequent changes later. For example let’s take GSTR-2B which is then generated for the month of July 2023, it’ll contain the documents that are filed by the suppliers but only from 12:00 am of 14th July 2023 to 11:59 on 13th August 2023.

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Understanding of ITC Form GSTR 2B Under GST Laws

The aspect of GSTR 2B tax return stands as a means of static return as of which the Goods and Services Tax(GST) system tends to aid the taxpayers which further reconciles their input tax credit(ITC). The GSTR-2B stands as an auto-drafted statement and it is basically based on the data which is furnished towards the suppliers. The taxpayers are required to monitor their own GSTR-2B to file for further ITC claims. Any conflict between the GSTR-2B should be addressed as required either by means of communication or by making further subsequent changes. The concept of GSTR-2B requires to understand the regulating legal provisions for ITC claims and if misreported then would attract punishments and penalties in accordance with the GST laws.

Commencement of ITC Form GSTR 2B

The GSTR-2B has come into application from August 2020 onwards and from January 2021 it can be further generated by the said recipient taxpayers only once of the 12th month that is next to the tax period. The GSTR-2B for August 2023 can be further accessible on September 12th, 2023.

Let’s say the GSTR-2B for the month of October 2023 can only be accessed on 14th November 2023. Any generation of timeline that includes GSTR-2B can be further checked on the “View Advisory Tab” under the governmental portal.

Categorisation of ITC Form GSTR 2B

The GSTR-2B form is further of two kinds as follows:

ITC is Available

The details containing the inward supplies, amendments, and credit-debit notes are under Part A of GSTR 2B ITC and are further divided into four parts as ITC for supplies through a registered person, ITC from ISD, ITC towards the inward supplies on the reverse charge with respect to the import of goods. The Part B of ITC contains a part known as “Others” which then further contains the details for the credit notes and any other amendments.

ITC not Available

The purchase of invoice which includes the details of CDN and any other amendments is available under Part A and is further categorised into three parts the ITC supplied from registered persons, the GSTR 2B ITC from ISD and the ITC for inward supply chain that is made on reverse charge. Part B contains the details for the other amendments available under “Others heading”.

What are the Key Benefits of GSTR-2B?

The collected data by the GSTR-2B is further made in a manner that further allows the taxpayers to get in compliance with GST 2B ITC own collection of data including their accounts and any other records. It further helps them in identification and the documents that are made in the following:

• Any tax which is credited cannot be availed more than once towards any particular document.
• The credited tax will be reversed according to the law for GST in compliance with GSTR-3B whenever required.
• The GST is then further paid only on the reverse charges that are to be applied to the documents which include the imports for the services.
• The further statement will indicate any table or columns that contain the input tax credits of the invoice followed by a debit note that shall be taken.

Features of GSTR-2B as per the GST Laws of India 

Any regular taxpayer who further purchases that is made from the input tax credits which also includes the non-resident taxable persons are available in GSTR-2B. The input service distributor who distributes input tax credit is also available. The GSTR-2B contains the things as follows:

• Every section shows a summary of the availability and non-availability of ITC.
• Every section highlights the advisory for the taxpayers.
• Every document details including invoices, credit notes, and debit notes are available to view and can be downloaded with amendments.
• The GSTR-2B can also be used by the cut-off dates including any advisory.
• From August 2020 the details for the import of goods from the SEZ units will be available under GSTR-2B.
• One can now view and download the summary for the statement which is made available as a PDF file.
• The section-wise details can be obtained or can be downloaded through ITC instantly.
• The advisory is available in a section-wise manner.
• Any other tax can be searched for the records.
• There is an option through which one can view, filter out or sort the data according to the needs.
• Further, hide or view the columns as per the requirement.
• Any file containing more than 1,000 records can be now downloaded by the GSTR-2B under the option of advanced search.
• The generation of the GSTR-2B will be notified towards its user through mail or SMS.
• The documents filed by the suppliers under ISD in the GSTR-2B can only be made available.

Step-by-Step Process of Filing GSTR 2B Through GST Portal

Given below is the process to file mentioned GST form through GST portal:

• Accessing the GST Portal (https://www.gst.gov.in/)
• Login with the credentials
• Navigating to GSTR-2B (Click on “Service”- “Returns”- “Returns Dashboard”)
• Viewing GSTR-2B (Viewing it under “Auto-drafted ITC Statement and click on “View” to see the GSTR-2B)
• Downloading GSTR-2B
• Reconciling GSTR-2B (Match the details with the key documents)
• Communicating with Suppliers(Only in case of mismatch)
• Filing GSTR-3B (Make necessary adjustments then file)

Key Documents Required to File GSTR 2B Tax Return in India

List of key documents which are required in order to file the mentioned form are: 

• Purchase Invoices
• Debit and Credit Notes
• Import Documents
• ISD Invoices
• Expense Invoices
• Payment Proofs
• Previous GSTR-3B Returns
• Previous GSTR-2A 
• StatementsBooks of Accounts

Conclusion

The introduction of ITC Form GSTR 2B stands as an important step for further modernising and simplifying the process of regulating GST in India. It also brings numerous benefits including accuracy, timeline and further compilation. However, the business is subject to changes including data discrepancies, data dependence and other technical issues. The business can further leverage the data of GSTR-2B to further smooth the process for GST and make further improvements.

FAQs

1. What do you understand about the GSTR 2B tax return?

The GSTR-2B is an auto-drafted statement made for every static month for the regular taxpayers which was introduced towards the GST portal. 

2. Who can generate GSTR-2B?

It is available to all the SEZ and casual taxpayers. Every recipient can further generate it based on GSTR-1, GSTR-5 and GSTR-6 which are very well supplied by the furnishers.

3. When did the GSTR-2B come into force?

The GSTR-2B has come into application from August 2020 onwards and from January 2021 it can be further generated by the said recipient taxpayers only once of the 12th month that is next to the tax period.

4. What are the two categorisations for GSTR-2B?

It is further categorised into ITC is available and ITC not available.

5. What are the benefits of GSTR-2B?

The collected data by the GSTR-2B is further made in a manner that further allows the taxpayers to get in compliance with ITC’s own collection of data including their accounts and any other records.