All you Need to Know about Form GSTR-2

Last Update Date : April 04, 2019
Estimated Read Time: 8 min

how to file gstr 2

What is GSTR-2?

It is mandatory to furnish details of inward supplies of goods/services received during a tax period for every registered taxable person. These details are furnished based on FORM GSTR-2A which is auto populated on the basis of GSTR-1 filed by your supplier, electronically through the Common Portal, either directly or from a Facilitation Centre, notified by the Board or Commissioner.

However, GSTR-2A does not in itself auto populates a complete GSTR-2, as there are certain other transactions which are to be mentioned manually in addition to the data which is generated through GSTR-2A, viz. Details of Inward Supplies from an Unregistered Persons on which tax is paid on the Reverse Charge basis and Imports effected during the tax period, etc.

Who Can File GSTR-2?

It is mandatory to file a GST Return for each and every entity registered under the GST Act. Even in case where there are no inward supplies during the tax period, NIL return for that period is required to be filed. In case of failure to file the return within due period, the tax payer is penalized with the late fees of INR 100 per day up to a maximum limit of INR 5,000.

When to File GSTR-2?

Every registered taxable person is required to furnish details of Inward Supply for a tax period i.e. the end of the relevant month
This return has to be filed by the recipient of (goods/services) supplies within 15 days from the end of the relevant tax period.
However to facility the ease of payment and return filing for small and medium scale businesses with annual aggregate turnover up to Rs 1.5 crore, it has been decided in the 22nd GST Council meeting dated 6th October 2017, that such tax payers shall be required to file quarterly returns in Form GSTR-1, GSTR-2 and GSTR-3 and pay taxes only on quarterly basis, starting from the third quarter of this financial year, i.e. October to December 2017.

What Details are Included in GSTR-2?

The details pertaining to the purchases by a tax payer are included in GSTR-2. GSTR-2 is prefilled for a taxpayer based on the GSTR-1 filed by his supplier. The only thing a taxpayer need to do is the validation of the pre-filled details and make necessary modifications, if required.

For example, if you are purchasing goods from company X, company X would have filed its GSTR-1 (for its sales) along with inclusion of your name/GSTIN as the buyer. In such scenario, the same details reflect in your GSTR-2 as purchases. Now, you need to validate the same information in your GSTR-2 as purchases.

The following details are included in GSTR-2:

  • The particulars of purchases / inward supplies (auto-populated by the department)
  • In a separate tabular format, submit invoices on which partial credit has been gained previously
  • Details of Inward Supplies from and Unregistered Persons on which tax is payable on Reverse Charge basis
  • Details of Import of Inputs and Capital Goods

Proforma of GSTR-2

Here you can see the complete format of the Form GSTR-2

Headings that Appear under GSTR-2 and their Significance

Most of the headings under this return are auto-populated from counter-party’s GSTR 1 return.

S. no. Headings Details to be furnished
1. GSTIN (Goods and Services Taxpayer Identification Number ) 15 digit state-wise PAN number which will be auto-populated at the time of filing a return.
2. Legal Name of the Registered Person Will be auto-populated when a taxpayer will login to the common GST portal
3. Tax Period Month or Quarter and year to which the Return pertains (for which GSTR-1 is being filed); to be selected from drop-down menu
4. Taxable Inward Supplies from a Registered Person In the case of both inter-state supplies and intra-state supplies, details will be auto-populated from GSTR-2A which is filed by your Counter Party which will be reflecting in your GSTR-2A Any additional claim which is not auto-populated can be included by the registered person in this section. The reasons of no auto-population could be:
1.Failure to filing of GSTR-1 by Supplier
2.Missing transaction from the end of Supplier, even though GSTR-1 has been filed
3.Wrong GSTN entered in return
In either case, manual details can be entered by the buyer and at that time supplier too gets a notification to accept this modification in his GSTR-1A return
In case, purchases have been made in more than one lot, the details of invoice should be reported in the return period in which the last lot has been received and recorded in books of accounts.
5. Modifications to Details of Inward Supplies Received in Earlier Tax Periods Here, the taxable person can manually amend any detail with respect to goods or services received in earlier months. On receiving a notification pertaining to the amendment, a supplier needs to accept this change in his GSTR-1A return.
6. Imported Inputs/ Capital Goods (received from overseas or from SEZ units) Under GST, imports (Inputs/Capital Goods received from overseas or from SEZ units) are considered as inter-state supply and hence any such goods/services received, need to be furnished under this head
7. Modifications to Details of Imported goods; received in Earlier Tax Periods Any amendment in tax calculated on imported goods is presented under this heading along with details of the entire changes in the bill of Entry / Import Report.
8. Services imported from overseas Alike goods imported, services imported also need to furnish here. Imported services will fall under Reverse Charge Mechanism of the collection of GST and accordingly such details shall come under Inward Supplies on which tax is to be charged on Reverse Charge.
9. Modifications to Details of Imported services; received in Earlier Tax Periods Any amendment in tax calculated on imported services is presented under this heading along with details of the entire changes in the bill of Entry / Import Report. Any reduction in value of supply will result in a refund of IGST paid earlier.
10. Debit notes and credit notes details All debit and credit notes must be reported by a taxable person. Debit notes and credit notes issued under reverse charge mechanism, if any, will be auto-populated from GSTR-1 and GSTR-5 of counter-party.
11. Amendment to debit or credit notes of earlier tax periods Any amendment in debit /credit note pertaining to previous months shall be reported under this heading. This will mainly include the changes made under reverse charge mechanism transactions. Any other modification will be auto-populated.
12. Supplies received from unregistered person/entity This include supplies from other than normal registered taxable person/entity or composition dealer e.g. non GST supplies:
13. TCS credit This is only for merchants registered as ecommerce operators. This information will again be auto-populated from GSTR-8 of E-commerce operator.
14. ISD credit (received from Input Service Distributor) Any ISD credits get auto-populated here from GSTR 6 filed by your counter party. This includes cases where input services are received by head-office and some portion of this transferred to its branch office
15. TDS credit (tax deduction at source) This is only for special cases where an assessee is engaged in specified contracts with specified parties. Here, a certain proportion of transaction value is deducted as TDS. This detail will be auto-populated from GSTR-7 filed by your counter party, where that party(deductor) shall have furnished required details
16. Received ITC on invoices on which partial credit has been availed earlier If the supplier has not filled any return then ITC not available in any case. If buyer filed GSTR-2 for the same then supplier get GSTR-1A for acceptance or rejection.
17. Tax Liability under Reverse Charge Tax Liability under Reverse Charge Arising on Account of Time of Supply without Receipt of Invoice.
18. Modification to Tax Liability Under Reverse Amendment in Tax Liability Under Reverse Charge arising on account of Time of Supply without receipt of Invoice
19. Already paid tax This include GST already paid under Reverse Charge in earlier tax period on account of the time of supply for which invoices are received in the current period.
20. ITC Reversal All kind of input tax reversal are reported here along with the reason for reversal; including, ITC reversal owing to exempt and non-business supplies.
ITC is not allowed on few services
e.g., goods and/or services used for private or personal consumption, to the extent they are so consumed
21. Modifications to ITC Reversal Manual ITC modifications by a registered person under GST law will appear under this heading.
22. HSN Summary of Inward Supplies In this field, HSN wise summary of Inward Supplies is required to be given.

Key Pointers to Note

  • GSTR-2 is exempted for a Compounding Taxable Person and Input Service Distributor.
  • GSTR-2 must be provided by the 15th of the month following the tax period. (Except for the taxpayers who have aggregate turnover of up to Rs.1.5 crores, who can from 3rd quarter of this financial year, file the returns quarterly).
  • In line with the GSTR-1 furnished by counter-party supplier, auto-population under GSTR-2A would be done.
  • On submission of return, Inwards supplies details would be auto-populated in ITC (input tax credit) ledger.
  • Separate tables are used for submitting details related to:
    • ITC received on an invoice where partial credit has been availed earlier
    • ISD credit received by taxpayer
    • TDS credit received by taxpayer

How to File GSTR 2?

The GSTR 2 can be filed through the Common Portal electronically. It can also be filed by using services of GSPs or ASPs. This FORM GSTR-2 should include the points mentioned in the above given proforma. After verifying and validating the data, GSTR 2 summary needs to be generated and then the GST return needs to be verified and submitted.

Revision of GSTR 2

GSTR 2 cannot be revised after filing the return. It can be revised in the next month’s return. The revision for 1 month’s GSTR 2 can be done in the next month’s GSTR 2.

Importance of GSTR 2

It is very important in the process of Purchaser and supplier reconciliation. GSTR 2 has all the transactions related to purchases of registered as well as unregistered dealers. It is useful to the government for checking the GSTR 1 of the supplier for the above-mentioned reconciliation process.

Insights on GSTR-2 and GSTR-2A

Forms GSTR-2: To provide details of supplies made inward (compounding and ISD taxpayers are exceptions) GSTR-2A: To furnish details of inward supplies received by the recipient which are based on Form GSTR-1 filed by the supplier
Due date 15th day of the subsequent month/ Quarter 15th day of the subsequent month/ Quarter

Reconciliation of GSTR 2A

One does not have to declare all the inward supply details in the GSTR 2 as most of these inward supplies are auto-populated in the GSTR 2A which is based on the GSTR 1 filed by the supplier. The purchaser must select one of these 4 options which are Accept, Reject, Modify and Pending. Based on these selections the inward supply records available in the auto-populated GSTR 2A are made available in the GSTR 2 automatically. The purchaser only has to add the missing inward supply invoices if any. However, to select one the above-mentioned 4 option the purchaser has to do a reconciliation of the GSTR 2A and his books of accounts.

Reconciliation process involves GSTR 2A and the books of accounts. The process of Reconciliation under GST is necessary to avail maximum Input Tax Credit, however, it is a time-consuming process and occupies a lot of human resources, as it involves contacting the vendors for asking them to make changes/alterations in the returns filed by them.

Frequently Asked Questions

1. Who are exempt from filing GSTR 2?

Input Service Distributor, Non-Resident Taxable Person, Taxpayers paying tax under section 51 (TDS) or 52 (TCS) and Composition scheme taxpayers are exempt from filing the GSTR 2.

2. What is the timeline for claiming ITC?

The input tax credit can be claimed up to the date whichever is earlier of the below mentioned. Input tax credit is not allowed If the invoice date is after this limitation period. 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.

3. What happens if we reject an invoice which is available in the Form GSTR-2A?

The rejected invoices get auto-populated in the relevant supplier’s GSTR 1A wherein he can Accept or Reject or Amend it.

4. Can invoices be added before the date of registration in GSTR 2 by a taxpayer?

Invoices cannot be added before the date of registration in GSTR-2 and claim credit.

Have you Filed your GST Returns Yet?

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CA Ankita Mathur
CA Ankita Mathur
Ankita, a Big 4 alumna, is a tax expert at H&R Block (India) with vast experience in managing GST-related business services. An avid traveller, Ankita is a regular contributor to the CAclubindia and loves helping people understand about GST and helping companies be GST compliant.