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 the 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.
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.
The 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.
Is there any exemption for GSTR 2?
Yes, the following taxpayers are exempt from filing Form GSTR-2:
i)Input Service Distributors
ii)Taxpayers under the Composition Scheme
iii)Non-resident Taxable Persons
iv)Taxpayers paying tax under section 51 (TDS) or 52 (TCS)
By when does one 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 the month succeeding the tax period.
The due date of filing of Form GSTR-2 can be extended by the Board/Commissioner by notification.
Is there any late fee applicable on filing of Form GSTR-2 after due date? If yes, what are the charges?
Yes, a taxpayer 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).
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.
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:
i)Casual taxable person
ii) Surrender of Registration by Normal Taxpayer 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.
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.
What are the pre-conditions for filing GSTR-2?
Pre-conditions for filing of GSTR-2 are:
i) The receiver taxpayer should be a Registered Normal Dealer and should have an active GSTIN.
ii) Receiver taxpayer should have valid login credentials (i.e., User ID and password).
iii) Receiver taxpayer should have valid and non-expired/ unrevoked Digital Signature Certificate (DSC which is mandatory for companies, LLPs and FLLPs).
iv) Receiver taxpayer should have a valid Aadhaar number with mobile number, in case they want to use the E-Sign option.
v) 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.
vi) A receiver taxpayer will have an option to file Form GSTR-2 for cancelled GSTINs for the period in which it was active.
vii) Due date for filing of Form GSTR-1 of the same tax period should have lapsed.
What happens after Form GSTR-2 is filed?
After Form GSTR-2 is filed:
i) 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.
ii) An SMS and an email are sent to the taxpayer on his registered mobile and email on successful submission of Form GSTR-2.
iii) Once the Form is submitted after affixing DSC or E-sign or EVC as the case may be, the Form is passed on to:
a) The CBEC (Central Board of Excise and Customs – the central tax authority)
b) Tax authority of jurisdictional State or UT of
iv) 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.
v) Electronic Credit Ledger is updated
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
What are the steps involved in filing Form GSTR-2?
i)Receiver taxpayer logs into the GST portal using their login ID and password.
ii)Navigate to Services > Returns > Returns Dashboard.
iii)Select the financial year and tax period for which GSTR-2 needs to be filed and click SEARCH.
iv)All returns pertaining to the given tax period will be displayed as tiles.
v)Select the GSTR-2 tile and click on PREPARE ONLINE or PREPARE OFFLINE.
vi)There are two tabs on the top indicating “Uploaded by Supplier” and “Uploaded by Recipients.
vii)Receiver taxpayer will be able to see the supplier-wise summary of all invoices received.
viii)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.
ix) 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.
x) 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.
xi)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).
xii)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.
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.
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.
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.
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.
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:
i) Add missing invoices/other details
ii) Take action on other auto-drafted details
iii) Preview GSTR-2
iv) Acknowledge and Submit GSTR-2 to freeze data
v) File GSTR-2 with DSC/ EVC
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 the 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.
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.
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.
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.
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.
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.
I accidentally 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
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.
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.
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.
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.
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.
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 accepted.
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.
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.
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