Why was GSTR-2 suspended?

GSTR-2 was suspended due to complexities in the filing process. The government replaced it with GSTR-3B to simplify tax compliance.

How to use GSTR-2A for tax filing?

Businesses should download their GSTR-2A from the GST portal, match it with their purchase records, and claim the eligible ITC while filing GSTR-3B.

What is GSTR-2A?

Gstr-2A is an auto-related purchase-related tax return that is dynamically populated by the GST portal. This reflects the details of the arrival supply of goods and services, collected based on details uploaded by suppliers to their Gstr-1 return.

This statement helps taxpayers cover the requirements for incoming tax credit (ITC) before submission of GSTR-3B.

Understand Gstr-2 and its relevance

Gstr-2 was originally designed as a monthly return to report the internal supply of taxable goods and services. However, the submission was suspended in September 2017, and GSTR-3B was made compulsory for compliance.

Despite the suspension, Gstr-2A ITC continues to act as an essential document to verify and gather claims.

Download GSTR 2 Format

Difference between Gstr-2A, Gstr-2B and Gstr-3B

Gstr-2A	Gstr-2B	Gstr-3B
Gstr-2A: A dynamic statement that uploads and when suppliers upload invoices to Gstr-1.	GSTR-2B: A static statement generated monthly, showing available ITC.	GSTR-3B: A self-declaration summary return, which must be filed to pay GST liabilities.

How to Download GSTR-2A?

You can download the GSTR-2A report, including inward supply details from SEZ units/developers, in CSV format from the GST portal.

Impact of Debit/Credit Notes on GSTR-2A

Before Delinking:

Original invoice number and date were linked to debit/credit notes.
The Place of Supply (POS) field was unavailable.
Supply type and reverse charge details were missing.

After Delinking:

Original invoice details are no longer linked to notes.
The POS field is now mandatory.
Supply type and reverse charge fields are now included.

Components of GSTR-2A

1

GSTIN and Taxpayer Details

Contains PAN-based GSTIN and taxpayer information.
2

Inward Supplies from Registered Taxpayers

Includes invoice-wise purchase details.
3

Inward Supplies under Reverse Charge

Captures purchases where tax liability is on the recipient.
4

Inputs/Capital Goods Received from Overseas or SEZ Units

Includes import data and IGST levied.
5

Amendments to Earlier Period Inward Supplies

Allows corrections of previous tax period errors.
6

Supplies from Composition Dealers and Non-GST Supplies

Lists purchases from composition taxpayers.
7

Input Service Distributor (ISD) Credit

Displays ITC received from head offices.
8

TDS and TCS Credit Received

Auto-populated details from GSTR-7 and GSTR-8.
9

Advance Payments and Adjustments

Shows tax paid on advances and adjustments.
10

ITC Reversal and Reclaims

Details reversal of ITC for non-business or exempt supplies.
11

Adjustments for Tax Mismatch and Reconciliation

– Highlights mismatched invoices and rectifications.
12

HSN Summary of Inward Supplies

Provides HSN-wise item summary.

Who Should Use GSTR-2A?

Input Service Distributors (ISDs)
Composition Dealers
Non-resident Taxable Persons
TDS and TCS Diductors
Online Service Providers under OIDAR

Consequences of Non-Filing GSTR-2

Failure to reconcile GSTR-2A with GSTR-3B can lead to incorrect ITC claims, penalties, and interest payments at 18% per annum.

Buyer-Seller Reconciliation

Invoice matching between GSTR-2B and GSTR-3B is crucial for ITC claims. However, sometimes referencing GSTR-2A is necessary to address discrepancies.

Can GSTR-2 Be Revised?

No, GSTR-2 cannot be revised. Errors must be corrected in the next month’s return.

GST-2A continues to serve as an important resource for maintaining compliance. While the need to enter Gstr-2 is currently passive, companies should regularly verify Gstr-2A against Gstr-3B and Gstr-2B to reduce the ban can be reduced.