Input Tax Credit – Various Return Type to be filed

Input Tax Credit – Various Return Type to be filed


Input Tax Credit – ITC

Input credit means it is the tax paid by the buyer at the time of purchase of any services or goods. 



TYPES OF ITC RETURN ON GST PORTAL

GSTR-2A: Details of auto drafted supplies

It is a purchase-related dynamic tax return that is automatically generated for each business by the GST portal.

Form GSTR-2A will be generated in the below cases:

  • When the supplier of goods or services uploads the sales details in their Form GSTR-1 or 5
  • ITC details of Import of goods from overseas, on the bill of entry, as received from ICEGATE Portal of Indian Customs.
  • TDS & TCS details will be auto-populated when a counterparty files the GSTR 7 & 8 Forms
  • Input Service Distributor details will be auto-populated on submission of Form GSTR-6


GSTR-2B: Auto-drafted ITC Statement

GSTR-2B is an auto-generated statement of ITC available, as the details submitted by their suppliers, through GSTR-1, GSTR-5 and GSTR-6. It also contains imports from the ICEGATE system, including inward supplies of goods received from the SEZ. GSTR-2B data can be used to take exact input in GSTR-3B. However, it is the static form that will not change every month. It is only a “read-only static auto-drafted” ITC statement no need to file a return.


GSTR-2B, as opposed to GSTR-2A, remains the same for a period while GSTR-2A keeps on changing as the supplier files their GSTR-1. But GSTR-2B, when generated for a period, will not change.



The distinction between Form GSTR-2A and 2B

GSTR-2A & GSTR-2B reflects similar details, but both the forms are different in various ways as summarized below-


1. Statement Type-

GSTR-2A is a dynamic statement form & the ITC details of inward supplies will be updated continuously. On the other hand, GSTR-2B is a static statement form & the ITC details will be updated on the GST portal on a constant basis.


2. Reflection of essential detail-
GSTR-2A is the statement of the inward supplies reflect on a real-time basis, and GSTR-2B is the statement of inward supplies reflected in a static statement as said above. 

3. ITC bifurcation-eligible or ineligible-

You are already aware that Form GSTR-2A contains the details of ITC & doesn’t reflect the bifurcation of eligible or ineligible ITC. On the other hand, GSTR-2B briefly bifurcates the same. 


4. Data source-

Form GSTR-2A collects/ compiles data based on returns filed by the supplier in Form GSTR-1; Form GSTR-5; Form GSTR-6; Form GSTR-7, and Form GSTR-8. Form GSTR-2B complies with Form GSTR-1; Form GSTR-5, and Form GSTR-6 filed by the supplier.




Role of GSTR-2A and GSTR-2B for taking Input Tax Credit while filing GSTR-3B

The CBIC clarified that ITC could be availed on details available in GSTR-2B as many clients are filing their GSTR 1 after the due date, which gets reflected in GSTR-2A but not in GSTR-2B which shows the difference in ITC with auto-populated data. So “Input tax credit is required to be availed based on details available in FORM GSTR-2B, which is a static ITC statement generated for each month,” the Board confirmed. However, all professionals recommend claiming the ITC after GSTR-2B reconciliation with GSTR-3B.  



Conclusion

GSTR-2A and GSTR-2B both form shows details of ITC. Therefore, you can choose any form as the base for complying with rule 36(4) of the CGST Rules, 2017. 

Our answer is subjective and goes with the approach adopted by taxpayers because GST law is silent in this regard. Nevertheless, the departmental clarification in the matter would be a sigh of relief for the trade and industry.







For more information on this visit TAXAJ.



Posted By Ramesh Kumar Gupta

(Team TaxaJ)

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