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  • 01/03/2024
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Difference Between GSTR 2A and 2B

GSTR-2A provides a dynamic and real-time view of input tax credit based on supplier submissions, GSTR-2B takes it a step further by offering a more structured, user-friendly, and monthly consolidated view.

Knowing the difference between GSTR-2A and GSTR-2B is important for businesses to ensure accurate reconciliation and optimize their input tax credit utilization. By understanding the nuances of these forms, taxpayers can navigate the complex GST landscape with greater efficiency and precision.

In this blog, we unravel the key differences between GSTR-2A and GSTR-2B, shedding light on their functionalities and significance.

What is GSTR-2A?

GSTR-2A is an auto-populated return that provides a comprehensive view of the inward supplies (purchases) made by a registered taxpayer from their registered suppliers during a specific tax period. GSTR-2A comprises of:

Invoices Uploaded by the Supplier: GSTR-2A includes details of all invoices that have been uploaded by the supplier in their GSTR-1 return.

Credit/Debit Notes Uploaded by the Supplier: Any credit or debit notes issued by the supplier, reflecting changes in the initially recorded transaction values, are also included in GSTR-2A. These adjustments could be due to corrections, returns, or modifications in the original invoices.

Amendments to Invoices or Credit/Debit Notes: GSTR-2A accounts for any amendments made by the supplier to the invoices or credit/debit notes that were initially uploaded.

GSTR-2A is auto-populated, allowing taxpayers to reconcile their purchases with the information provided by their suppliers. By comparing the details in GSTR-2A with their records, businesses can ensure the accuracy of input tax credits claimed and identify any discrepancies that may need correction.

It's important to note that GSTR-2A is read-only, meaning taxpayers cannot directly edit or modify the information in this return. However, it serves as a valuable reference for taxpayers during the reconciliation process and helps in ensuring compliance with GST regulations.

What is GSTR-2B?

GSTR-2B is an auto-populated return designed to provide a structured overview of the inward supplies received by a registered taxpayer from their registered suppliers. Here's an overview of what GSTR-2B:

Details of Invoices, Credit/Debit Notes, and Amendments: GSTR-2B includes details of all invoices, credit/debit notes, and any amendments made by the supplier to the invoices or credit/debit notes already uploaded.

Static Generation: GSTR-2B is generated as a static return on the 14th of every month. Unlike GSTR-2A, which is dynamic and continuously updated as suppliers submit their GSTR-1 returns, GSTR-2B remains constant for a particular month, even if suppliers make changes to their returns in subsequent months.

Additional Details in GSTR-2B: GSTR-2B provides additional details such as the Input Tax Credit (ITC) available for the taxpayer and information regarding late fees payable or paid. This additional information aims to offer a more comprehensive understanding of the taxpayer's GST compliance status.

GSTR-2A/2B and Input Tax Credit

The eligibility for availing input tax credit is governed by rule 36(4) of the Central Goods and Services Tax Rules, 2017. According to this provision, a registered person can claim a maximum of 5% of input tax credit in relation to invoices or debit notes that have not been reflected by the supplier in either Form GSTR-1 or the invoice furnishing facility.

A common query arises regarding whether to consider Form GSTR-2A or Form GSTR-2B as the basis to comply with the requirements of rule 36(4).

In this context, Form GSTR-2B, being a static document, is considered a suitable reference for this purpose. It provides a consistent snapshot of input tax credit, making it a reliable basis for compliance. It's noteworthy that the current GST system automatically mirrors the input tax credit figures from Form GSTR-2B into Form GSTR-3B. However, it's crucial to highlight that no official clarification has been provided by the authorities on this matter.

GSTR-2A and GSTR-2B Reconciliation

GSTR-2A and GSTR-2B serve as reconciliation statements within India's Goods and Services Tax (GST) system, assisting registered taxpayers in aligning their input tax credit (ITC) with the tax obligations of their suppliers.

The primary objective of reconciling GSTR-2A and GSTR-2B with a taxpayer's internal records is to verify that the claimed ITC corresponds accurately with the actual tax liabilities of their suppliers.

To accomplish this reconciliation, taxpayers must meticulously compare the details presented in GSTR-2A and GSTR-2B with their own purchase records. Any disparities identified during this process necessitate appropriate corrections or adjustments in their GSTR-3B (monthly summary return) or GSTR-1 (outward supply) return.

The reconciliation can be performed using an advanced GSTR filing tool that enables ITC claims with factual tax liabilities, contributing to accurate and compliant GST reporting.

What is the Difference between GSTR-2A and GSTR-2B?

While similar in purpose to GSTR-2A, GSTR-2B differs in its generation frequency and some additional features. Here are the key differences between GSTR 2A and GSTR 2B,


GSTR-2A

GSTR-2B

Nature of Return:

GSTR-2A is a dynamic return that constantly updates when invoices are uploaded by suppliers.

GSTR 2B is a static return that is updated every month.

Frequency of Generation:

GSTR-2A is generated in real time as suppliers submit GSTR-1.

GSTR-2B is auto-generated on a monthly basis.

Source of Information 

GSTR 2A has sources of information from GSTR-1/IFF, GSTR-5, GSTR - 7 (GST -TDS), GSTR - 6 (ISD), GSTR - 8 (GST -TCS)

GSTR 2B has sources of information from GSTR- 1/IFF, GSTR-5 (Non-Resident) GSTR - 6 (ISD)

Additional Information:

GSTR-2A provides a basic overview of ITC based on GSTR-1 data.

GSTR-2B offers a more detailed and categorized breakdown of ITC.

User Accessibility:

GSTR-2A is available for real-time monitoring and reference during GSTR-3 preparation.

GSTR-2B is designed in a user-friendly format for easy comprehension and reconciliation.


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