In our previous article we discussed the revised heads, new formats and return filing procedure of the GSTR-1 FORM which should be filed by the taxpayer for his outward supplies made.
In this article, we will talk about FORM GSTR-2 which contains details of all inwards supplies of goods and service and is the next step for the taxpayer once he has filed GSTR-1.
What is GSTR-2?
GSTR-2 is a form which should be submitted for “Return for Inward supplies for a tax period” by each registered taxable individual, in India received, during a month.
Who needs to file GSTR-2?
As per GST law all tax payers who had filed GSTR-1 are required to file GSTR-2 except input service distributors, non-resident taxable individuals under GST and, individuals registered under the compounding scheme.
Also, tax deductions, E-commerce operators are not required to file GSTR-2 as they have separate FORMS which need to be filed by them.
Due Date for Filing GSTR-2
As per the announcement by the GST council, GSTR-2 must be filed by October 31st 2017 by every registered taxpayer, which is approx. two weeks in wake of filing GSTR-1.
Format and Steps for Filing GSTR-1
STEP 1: A taxpayer needs to login at GST portal by using his user ID and password.
STEP 2: If the Login is successful the user can see his/her dashboard.
STEP 3: Now by clicking on Service menu followed by the Returns, the tax payer will be redirected to the GST return page. The segment will show all the services available on GST portal and, the taxpayer needs to select one to continue further.
Information Auto-populated in GSTR-2
- Details of tax collected at source furnished by an e-commerce operator
- Invoice wise details of all supplies received from registered persons
- Details of invoices furnished by a non-resident taxable person in his return in FORM GSTR-5
- Details of invoices furnished by an Input Service Distributor in his return in FORM GSTR-6
- Details of tax deducted at source furnished by the deductor in FORM GSTR-7
Information to be filed in GSTR-2
1. GSTIN: Each taxpayer in India, filing GSTR-1 will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). The GSTIN will be auto-filled on GST portal at the time of return filing in future by the taxpayer.
2. Name of the registered taxpayer: Name of the taxpayer will be automatically filled at the time of logging into the GST portal. In case of Trade Name (if any) should be provided separately
3. Tax period, Month and Year: Relevant month and year must be selected by the taxable individual for whom GSTR-1 is being filed.
4. Inward supplies received from a registered taxable individual other than the supplies attracting reverse charge:
a) The tax payer has the choice to accept, reject, modify or keep the transactions pending for activity for the information that has been auto filled in the section.
b) The taxpayer now needs to mention whether he or she is eligible or not for availing input tax credit
c) The taxpayer has the facility to add invoices which are not uploaded by the counter party supplier. For Inter-state supplies the taxpayer will only file IGST and for intra-state supply both CGST and SGST would be filed.
5. Inward supplies on which tax is to be paid on reverse charge: In this section table 4A will be auto filled
a) If any invoices are added by the taxpayer then Place of Supply needs to be mentioned always. But for the supplies received from a registered individual it is only required if the invoices are different from the location of the recipient
b) The taxpayer needs declare whether the inputs, input services or capital goods in part 12 of the FORM
6. Inputs/Capital goods received from overseas or from SEZ units on a Bill of Entry:
a) In this section all details related to Import of Goods/Capital Goods from overseas and supplies by SEZ unit must be reported rate-wise by the recipient tax payer.
b) A bill of entry containing 6 digits port code and 7 digits bill entry number ought to be given by the recipient
7. Amendments to details of inward supplies furnished in return for earlier tax period in table 3,4,5 (including debit and credit notes issued and their subsequent amendments)
a) If there is a case of export transaction then GSTIN will not be provided
8. Supplies received from composition taxable person and other Exempt/Nil rated/Non-GST supplies received: In this section information on gross value level needs to be furnished
9. Input Service Distributor (ISD) credit received: This section contains 2 columns 8A ISD invoice and 8B: ISD credit note. The taxpayer needs to furnish information accordingly.
10. TDS and TCS credit received: In this section recipient can claim ITC for business or non-business purpose.
11. Consolidated statements off advances paid/adjusted on account of receipt of supply.
12. Input Tax credit reversal/Reclaim.
13. Addition and Reduction of amount in output tax for mismatch and other reasons.
14. HSN wise summary of inward supplies: The taxable individual will consolidate all his inward supplies in this section.
From all the steps explained above, a taxpayer needs to be well-versed with minute information, regarding GST, before filing the return. Correct documentation and, invoicing would be the key component to furnish the correct data in such return. Failure to file GSTR-2 on time, needless to say, will attract penalty.
To avoid major mistakes while filing and, for auto reminders on returns you can use third party software’s, such as GreenGST, which are simpler to use rather than filing GSTR-2, directly on GSTN portal.