1. WHAT IS FORM GSTR-2?
GSTR-2 is the details
of inward supplies of goods or services to be furnished by registered taxpayer
on a monthly basis. The GSTR-2 would be prepared by registered taxpayer by
acting upon on auto-populated details from GSTR-1,5,6, 7,8 filed by the
corresponding supplier/ Non-Resident taxable persons/ ISD/ Tax Deductor/ Tax
Collector and by adding missing /other details as applicable. The registered
taxpayer can avail Input Tax Credit (ITC) for eligible inward supplies.
2. WHO IS REQUIRED TO FILE FORM
GSTR-2
Every registered
person, other than an Input Service Distributor or a Non-Resident taxable
person or a person paying tax under the provisions of section 10 (Composition
taxable person) or section 51 (TDS) or section 52 (TCS), is required to file
Form GSTR-2 (Statement of Inward Supplies), on a monthly basis, prepared on the
basis of auto-populated details from the Form GSTR-1 of the suppliers after
accepting, modifying, rejecting, or keep pending such data. Receiver taxpayers
can also add inward supplies and credit or debit notes received for supplies
that are not declared by the supplier taxpayer in Form GSTR-1.Recipient is also
required to declare his claim of ITC on inward supplies in Form GSTR-2.Form
GSTR-2 needs to be filed even if there is no business activity (Nil Return)
during a given tax period.
3. IS THERE ANY TAXPAYER WHO IS
EXEMPT FROM FILING FORM GSTR-2?
Yes, the following taxpayers
are exempt from filing Form GSTR-2:
·
Input Service
Distributors
·
Taxpayers under the
Composition Scheme
·
Non-resident Taxable
Persons
·
Taxpayers paying tax
under section 51 (TDS) or 52 (TCS)
4. BY WHEN DO I NEED TO FILE
FORM GSTR-2 FOR A GIVEN TAX PERIOD? OR WHAT IS THE DUE DATE FOR FILING FORM
GSTR-2?
The due date for
filing Form GSTR-2 is the 15th of the month succeeding the tax period. Example:
The goods and/or services received during the month of January, should be filed
between 11th and 15th of
February. In other words, for the supplies received in the month M, Form GSTR-2
shall be filed on or before the 15th day in
month M+1. However, action can be taken on auto-drafted details only after 11th of month succeeding the tax period.
5. CAN THE DATE OF FILING OF
FORM GSTR-2 BE EXTENDED?
Yes, date of filing of
Form GSTR-2 can be extended by the Board/Commissioner by notification.
6. IS THERE ANY LATE FEE
APPLICABLE ON FILING OF FORM GSTR-2 AFTER DUE DATE? IF YES, WHAT ARE THE
CHARGES?
Yes, a receiver tax
payer is charged late fee for filing Form GSTR-2 after the due date.
Late fee for filing
Form GSTR-2 after the due date is auto calculated. Payment of late fee is not
required before filing of Form GSTR-2. The fee must be paid before filing of
Form GSTR-3, without which the return is considered invalid.Late fees payable
is Rs 100/- for every day (as per CGST Act) during which such failure continues
subject to maximum of Rs 5000/-, (fees as per SGST Act will be charged
separately as per respective SGST Act).
7. WHAT IS THE DEFINITION OF
INWARD SUPPLIES UNDER GST?
The inward supplies
include all inward supplies of goods and/ or services, including inward
supplies of services and goods on which the tax is payable on reverse charge
basis.
8. UNDER WHAT CIRCUMSTANCES CAN
THE DETAILS OF INWARD SUPPLIES OF MONTH M IN THE FORM GSTR-2 CAN BE FILED
BEFORE THE END OF MONTH M (BEFORE THE END OF THE TAX PERIOD)?
Normal taxpayers
cannot file Form GSTR-2 before the due date of the filing of Form GSTR-1 of the
current tax period. However, following are the exception scenario for filing
before due date:
a. Casual taxable
person b. Surrender of
Registration by Normal Taxpayer However,
taxpayer who has applied for cancellation/ surrender of registration would be
allowed to file GSTR-2 only after confirmation of cancellation application.
9. WHAT IS THE TIME LIMIT
UP TO WHICH A TAXPAYER CAN CLAIM ITC?
ITC can be claimed up
to the due date of filing of the return of the tax period ending September of
the subsequent financial year in which the original invoice/ debit note was
issued or the annual return of the subsequent financial year is filed,
whichever is earlier. If the invoice date is after this limitation period,
credit is not allowable.
10. WHAT ARE THE
PRE-CONDITIONS FOR FILING GSTR-2?
Pre-conditions for
filing of GSTR-2 are:
·
The receiver taxpayer
should be a Registered Normal Dealer and should have an active GSTIN.
·
Receiver taxpayer
should have valid login credentials (i.e., User ID and password).
·
Receiver taxpayer
should have valid and non-expired/ unrevoked Digital Signature Certificate (DSC
which is mandatory for companies, LLPs and FLLPs).
·
Receiver taxpayer
should have a valid Aadhaar number with mobile number, in case they want to use
the E-Sign option.
·
A receiver taxpayer
should have with him an active mobile number which is indicated in his
registration details furnished to GST Portal at the time of enrolment/
registration or amendment to registration details for signing through EVC.
·
A receiver taxpayer
will have an option to file Form GSTR-2 for cancelled GSTINs for the period in
which it was active.
·
Due date for filing of
Form GSTR-1 of the same tax period should have lapsed.
11. WHAT HAPPENS AFTER
FORM GSTR-2 IS FILED?
After Form GSTR-2 is
filed: *ARN is generated on successful submission of
the Form GSTR-2 Return. In case, the return is filed through an offline
utility, a Temporary ID is generated when the taxpayer uploads the .JSON file.
On successful submission of the Form, an ARN is generated. *An
SMS and an email are sent to the taxpayer on his registered mobile and email on
successful submission of Form GSTR-2.
*Once the Form is submitted after affixing DSC or E-sign or EVC as the
case may be, the Form is passed on to: i. The CBEC (Central Board of Excise and Customs – the central tax
authority) ii. Tax
authority of jurisdictional State or UT of *In
case of modifications or additions in Form GSTR-2, such details are
auto-populated in Form GSTR-1/ 1A/ 5 of counterparty supplier taxpayers. *Electronic
Credit Ledger is updated.
12. WHERE CAN I ACCESS MY
FORM GSTR-2 FOR A GIVEN TAX PERIOD?
In the post-login
mode, you can access Form GSTR-2 return by navigating to the Returns Dashboard
and selecting the given financial year and return filing period. Path: Services > Returns > Returns Dashboard
13. WHAT ARE THE STEPS
INVOLVED IN FILING FORM GSTR-2?
·
Receiver taxpayer logs
into the GST portal using their login ID and password.
·
Navigate to Services
> Returns > Returns Dashboard.
·
Select the financial
year and tax period for which GSTR-2 needs to be filed and click SEARCH.
·
All returns pertaining
to the given tax period will be displayed as tiles.
·
Select the GSTR-2 tile
and click on PREPARE ONLINE or PREPARE OFFLINE.
·
There are two tabs on
the top indicating “Uploaded by Supplier” and “Uploaded by Recipients.
·
Receiver taxpayer will
be able to see the supplier-wise summary of all invoices received.
·
Clicking on the GSTIN
of a supplier will display the invoice wise list of the invoices uploaded by
that supplier or uploaded by the receiver, depending on which tab on the top
green band is clicked. Against each invoice of that supplier, receiver
taxpayer shall take one of four possible actions – Accept, Modify, Reject, and
Keep Pending.
·
The taxpayer can also
Add the missing invoices by clicking on the “Uploaded by Recipients” link on
the top and subsequently clicking on the ADD MISSING INVOICE tab.
·
After taking action
and entering/ uploading all the invoices and details in the various sections of
the GSTR-2, taxpayer will click SUBMIT to validate the data. On SUBMIT, if the
data furnished by the taxpayer is valid the declaration of the tax payer gets
frozen.
·
Once the data is
validated, taxpayer can click on FILE GSTR-2 using DSC or E-Sign or EVC (DSC is
mandatory for companies, LLPs, and FLLPs).
·
A confirmation message
will pop-up to confirm or cancel the filing with YES and NO options
respectively. Upon clicking YES, GSTR-2 will be filed and Acknowledgement
Reference Number (ARN) will be generated for the same.
For a detailed
description along with screenshots, please refer to the User Manual.
14. HOW CAN I FILE A NIL
RETURN, IF I HAVE NO INWARD/ SUPPLIES TRANSACTION IN THE MONTH?
In case there are no
inward supplies details to be furnished for the month simply take action on
auto-populated details if any and submit GSTR-2
15. WHY DO I NEED TO GENERATE
GSTR-2 SUMMARY?
You need to generate
GSTR-2 summary to update the summary on the tiles and to view the number of
auto-drafted invoices/ credit note / debit notes etc. on the tile.
16. WHY DO I NEED TO PREVIEW
THE GSTR-2 BEFORE SUBMITTING GSTR-2?
Preview button will
download the draft Summary page of your GSTR-2 for your review. It is
recommended that you download this Summary page and review the summary of
entries made in different sections with patience before submitting the GSTR-2.
The PDF file generated would bear watermark of draft as the details are yet to
be submitted.
17. WHY DO I NEED TO PREVIEW
THE GSTR-2 AFTER SUBMITTING GSTR-2?
Preview button will
download the Summary page of your GSTR-2 in PDF format. The PDF file generated
would bear watermark of final GSTR-2. You can save these for quick future
reference.
18. AFTER I HAVE TAKEN ACTION
ON THE INVOICES (ACCEPT. REJECT, MODIFY/ MARK AS PENDING), WHAT IS THE NEXT
STEP?
After you have taken
action on the invoices (Accept. Reject, Modify/ Mark as pending), you need to:
1.Add missing invoices/other details 2.Take
action on other auto-drafted details
3.Preview GSTR-2
4.Acknowledge and Submit GSTR-2 to freeze data 5.File
GSTR-2 with DSC/ EVC
19. WHAT ARE THE MODES OF
SIGNING GSTR-2?
You can file GSTR-2
using DSC, E-Sign or EVC.
Digital
Signature Certificate (DSC)
Digital Signature
Certificates (DSC) are the digital equivalent (that is electronic format) of
physical or paper certificates. A digital certificate can be presented
electronically to prove one’s identity, to access information or services on
the Internet or to sign certain documents digitally. In India, DSC are issued
by authorized Certifying Authorities.
The GST Portal accepts only PAN based Class II and III DSC. To
obtain a DSC, please contact any one of the authorised DSC-issuing Certifying
Authorities: http://www.cca.gov.in/cca/?q=licensed_ca.html
Electronic
Signature (E-Sign)
Electronic Signature
(E-Sign) is an online electronic signature service in India to facilitate an
Aadhar holder to digitally sign a document.
A One Time Password (OTP) will be sent to mobile phone number that is
registered with Aadhar at the time of digitally signing documents at the GST
Portal.
Electronic
Verification Code (EVC)
The Electronic
Verification Code (EVC) authenticates the identity of the user at the GST
Portal by generating a OTP. The OTP will be sent to the mobile phone number of
the registered mobile phone of Authorized Signatory filled in part A of the
Registration Application.
20. CAN I PREVIEW THE
FORM GSTR-2 BEFORE SUBMITTING?
Yes, you can preview
the Form GSTR-2 before submitting on the GST Portal
HIGH
LEVEL FLOW OF INFORMATION FROM GSTR-2 TO OTHER RETURNS
1. EXPLAIN IN DETAIL THE
VARIOUS ACTIONS THAT I CAN PERFORM AS A RECEIVER TAXPAYER ON THE UPLOADED
INVOICES THAT ARE AUTO POPULATED IN MY FORM GSTR-2 FOR A GIVEN TAX PERIOD.
All B2B supply details
uploaded by a supplier taxpayer will be displayed to the receiver taxpayer
(you) on a near real time basis in his GSTR-2A/ GSTR-2. Once the supplier
taxpayers file their Form GSTR-1/5 and due date of furnishing Form GSTR-1 is
over, you can accept/delete/modify each and every invoice received from such
supplier to prepare your Form GSTR-2. You can also choose to keep an invoice
pending for action; pending invoices will be rolled over to next tax period
return of the receiver taxpayer. As a
receiver taxpayer, you can also add B2B invoices in your Form GSTR-2 that have
been missed by the supplier taxpayer. You can add these missed invoices after
the due date of Form GSTR-1 (usually 11th day of M+1 onwards). You can add the
invoices till the actual date of filing of Form GSTR-2.
2. WHAT HAPPENS TO A SUPPLIER’S
INVOICE WHEN I ACCEPT IT IN MY FORM GSTR-2?
Any such invoice from
a supplier accepted by you in your Form GSTR-2 becomes part of your Form GSTR-2
Return and claimed credit would be posted upon GSTR-3 submission Note: It is assumed
that the supplier has filed Form GSTR-1/5 successfully since the invoice is
available to you for action in your Form GSTR-2.
3. WHAT HAPPENS TO AN INVOICE
WHEN I MODIFY IT IN MY FORM GSTR-2?
The modified invoice
becomes part of your Form GSTR-2 Return in its modified form. Additionally, the modified invoice flows to
the GSTR-1/ 1A/5 of the counterparty (in this case the corresponding supplier
taxpayer) for acceptance/ rejection of the modification made by you. Note: It is assumed that the supplier has filed Form
GSTR-1/5 successfully since the invoice is available to you for action in your
Form GSTR-2.
4. WHAT HAPPENS TO AN INVOICE
IF I REJECT IT IN MY FORM GSTR-2? DOES IT FLOW TO THE GSTR-1A OF THE SUPPLIER?
The rejected invoices
are auto-populated to the related supplier and will be available to him for
acceptance of Rejection / amendment in his GSTR-1A/GSTR-1/5.
Note: It is assumed that the supplier has filed
GSTR-1 successfully since the invoice is available to you for action in your
GSTR-2.
5. WHAT HAPPENS TO INVOICES
THAT I ADD IN MY FORM GSTR-2 USING ADD MISSING INVOICE FEATURE? DO THEY ALSO
FLOW TO THE GSTR-1A OF THE RESPECTIVE SUPPLIER TAXPAYERS?
There are two possible
scenarios:
a.
Supplier taxpayers have filed Form GSTR-1 – In this case, all invoices added by
me (receiver taxpayer) will flow to the respective GSTR-1A of the supplier
taxpayers where they can accept/ reject/ keep pending the invoices.
b. Supplier taxpayers have not filed GSTR-1 –
In this case, all invoices added by me (receiver taxpayer) will flow directly
to the respective GSTR-1 of the supplier taxpayers since they have not filed
the same as yet. The Supplier can accept/ reject/ keep pending the invoices.
6. DO I NEED TO TAKE ACTION ON
EVERY OUTWARD SUPPLY MENTIONED BY SUPPLIER TAXPAYERS IN THEIR FORM GSTR-1 WHILE
FILING MY GSTR-2?
Yes, you need to take
action on every outward supply mentioned by your supplier taxpayers in their
valid Form GSTR-1 of the same period or previous period which are available in
his GSTR-2A/2 for the purpose of filing your Form GSTR-2. The taxpayer can take
the action of keeping pending an invoice which has not been received by the
recipient in the concerned tax period. The invoices kept pending are rolled
over to the next tax period GSTR-2A/2.
7. WHAT HAPPENS IF THE ITC
CLAIMED BY ME IN LIEU OF INWARD SUPPLIES IS MORE THAN THE TAX DECLARED BY THE
SUPPLIER FOR THE SAME SUPPLY OR IF THE OUTWARD SUPPLY IS NOT DECLARED BY THE
SUPPLIER AT ALL?
In such cases, where
there is a discrepancy between the tax paid by the supplier taxpayer and the
credit claimed by the receiver taxpayer, a mismatch report is generated that is
communicated to both the supplier and receiver, and is also available to the
concerned jurisdictional tax officer(s).
If the supplier taxpayer does not rectify the amount as communicated in
the mismatch report, then the amount of discrepancy shall be added to the
output tax liability of the recipient in their return for month M+2 where M is
the tax period. The recipient will also pay interest at the prescribed rate on
the amount of credit from the date of availing the credit till the date of
addition to the output liability.
8. WHAT HAPPENS IF THE SUPPLIER
PAYS THE TAX AMOUNT, CORRESPONDING TO AN EXCESS CLAIM OF ITC WHICH WAS ADDED TO
RECIPIENT’S OUTPUT LIABILITY, AS A RESULT OF THE SUPPLIER’S NON-DECLARATION AND
PAYMENT OF TAX FOR THE SAME SUPPLY? WHAT WILL BE IMPACT ON INTEREST PAID BY THE
RECIPIENT ON THE AMOUNT WHICH WAS ADDED TO THE OUTPUT TAX LIABILITY OF THE
RECIPIENT?
Such an action must be
taken by the supplier before filing of return for the month September of the
succeeding financial year or filing of the annual return GSTR 9 of the
financial year in which the supply was made, whichever is earlier. The
recipient becomes eligible to reduce, from his output tax liability, the amount
which was added as a result of non-declaration and payment of tax for the same
supply by the supplier. The
interest paid by the recipient in this regard shall be refunded to the
recipient by crediting the amount in the corresponding head of his electronic
cash ledger. The amount of interest refunded shall not exceed the amount of
interest paid by the supplier.
9. CAN A RECEIVER TAXPAYER ADD/
UPLOAD THE INVOICES/ DEBIT NOTE FOR A DATE PRIOR TO THE DATE OF REGISTRATION?
Pre-GST invoices
cannot be added however Pre-GST debit/credit note may be added.
10. CAN A TAXPAYER ADD INVOICES
PRIOR TO THE DATE OF REGISTRATION IN GSTR-2?
A taxpayer cannot add
invoices prior to his date of registration in GSTR-2 and claim credit.
11. WHAT WILL BE THE IMPACT ON
ENTRIES IN FORM GSTR-2 IF A NORMAL TAXPAYER GETS CONVERTED INTO A COMPOUNDING
TAXPAYER?
Once a normal taxpayer
gets converted into a compounding taxpayer, the invoice related data entered in
Form GSTR-2 (after the date of conversion) can only be for invoices/ documents
dated prior to the date of conversion.
12. WILL THERE BE A SYSTEM
CHECK FOR DUPLICATION OF AN ITC CLAIM?
Yes, the system will
check for the duplication of an ITC claim. The duplication check of an invoice
will be at the GSTN Supplier, Invoice Number, and Financial Year level. This
check will be performed at the time of data validation before filing the Form
GSTR-2. In case of duplicate invoices, system will display an error message.
Non-duplicated invoices will be added to the return post validation.
13. CAN I MODIFY OR REJECT A
PREVIOUSLY ACCEPTED INVOICE RECEIVED FROM A SUPPLIER TAXPAYER AFTER I FILE MY
FORM GSTR-2?
No, it is not possible
to modify or reject (delete) an invoice once you have accepted it and filed
your Form GSTR-2.
14. I ACCIDENTLY REJECTED AN
INVOICE RECEIVED FROM A SUPPLIER TAXPAYER AND FILED MY FORM GSTR-2. IS THERE
ANY WAY FOR ME TO ACCEPT THE INVOICE NOW?
No. You are not
allowed to revise your action post submission of GSTR-2
15. HOW CAN I AVAIL CREDIT FOR
INVOICES WHICH HAVE BEEN REJECTED BY ME ACCIDENTALLY IN THE FILED GSTR-2?
As a recipient, I can
request the supplier to either accept the rejection or amend the invoices
rejected by me. In case of acceptance of rejection, the invoice can be added by
supplier as a new invoice or by the recipient as missing invoice. In case of
amendment of invoices, it will be populated to the recipient as modified invoices
to accept/ reject the amendment.
16. CAN I FILE MY FORM GSTR-2
FOR A GIVEN TAX PERIOD (M) IF I HAVE NOT FILED MY GSTR-3 FOR THE PREVIOUS TAX
PERIOD (M-1)?
No, Form GSTR-2 for
the current tax period cannot be filed if valid GSTR-3 of immediate preceding
tax period is not filed.
17. CAN I USE THE INPUT TAX
CREDIT I HAVE CLAIMED IN MY FORM GSTR-2 EVEN IF MY SUPPLIER/S HAVE NOT FILED
THEIR FORM GSTR-1?
Yes, you can avail the
credit claimed in Form GSTR-2 to discharge your liabilities. However, it is
important to note that in the event of any reversal of ITC in future due to
mismatch resulting from the fact that return is not filed or tax is not paid by
the supplier, interest will be levied on the excess ITC claimed by a receiver
taxpayer from the date of filing of GSTR-3 to the day the receiver taxpayer
discharges the excess liability along with interest.
18. CAN I RECTIFY AN ERROR OR
OMISSION THAT REMAINED UNMATCHED?
Yes, you can rectify
an error or omission that remained unmatched in the return of the tax period in
which mismatch report is communicated by the GST portal. Any other error or
omission which does not involve any matching can be corrected in the return of the
tax period in which it is noticed till the due date of the filing of the
September return of the subsequent financial year or filing of the annual
return of financial year related to the transaction, during which such an error
or omission is noticed. You will be required to pay the full tax and applicable
interest on the error/ omission in the return in which you are furnishing the
details.
19. CAN MY FORM GSTR-2 BE
REVISED?
Revision of
declarations/ information in GSTR-2 is possible for submitted GSTR-2 only
through amendment tables of subsequent tax period Form/ return.
20. WHERE CAN I SEE THE ITC
BEFORE ACCEPTING THE INVOICE UPLOADED BY THE SUPPLIER?
You need to first
click on Edit button to see the system calculated ITC. Click back and then
accept it. Or else, you can click on save button to change the status to accept.
21. IS THERE ANY WAY TO
DIFFERENTIATE BETWEEN INVOICES ON WHICH ACTION CAN BE TAKEN?
There is no way to
differentiate between invoices on which action can be taken. You need to
manually select and check if action can be taken on the invoice.
22. CAN I CHANGE THE STATUS
FROM MODIFY, ACCEPT, REJECT ANY NUMBER OF TIMES TILL SUBMISSION?
You can change status
of the invoice from modify, accept, reject any number of times till submission.
However, once the invoice has been modified and you wish to revert to original
details, you need to first reject the modified invoice. The status would now be
changed to Rejected with original details. Same can be accepted now.
HIGH
LEVEL COUNTERPARTY ACTIONS AND SOME BASIC SCENARIOS
1. IF FORM GSTR-1 OF MONTH M IS
FILED BY SUPPLIER TAXPAYER AFTER FILING OF FORM GSTR-2 BY THE RECEIVER
TAXPAYER, WHAT ACTION(S) NEED TO BE TAKEN BY THE SUPPLIER?
If supplier’s Form
GSTR-1 is filed after filing of Form GSTR-2 by the receiver, the missing
invoices added by the receiver will be auto-populated in the Form GSTR-1 of the
supplier. He has to take action of acceptance/ rejection/ keep pending on the
auto-populated invoices and furnish other information regarding his outward
supplies and file Form GSTR-1.
2. WHAT WILL HAPPEN IF THE
TAXPAYER ACCEPTS THE INVOICES AUTO-DRAFTED TO HIS FORM GSTR-1 BEFORE FILING HIS
GSTR-3?
Acceptance of auto
drafted invoices or changes by the supplier in his Form GSTR-1A will form part
of GSTR-3 of the supplier of M tax period. This happens provided such
acceptance is done, followed by successful filing of Form GSTR-1, before the
creation of GSTR-3 of M tax period.
