GSTR 2
In this artical, you will know about GSTR 2, Who is Eligible, GSTR-2 is filed late, GSTR-2 is not filed, Procedure, Benefits
What is GSTR 2?
Every registered taxable person is required to give details of inward supplies, that is, purchases for the tax period in GSTR-2. GSTR 2 includes invoice details of all supplies that have been received or all purchase transactions made, in which reverse charges are invited.
Who is Eligible to File GSTR 2?
The GSTR 2 return is required to be filed by all general GST registered taxpayers, whether any inward transactions (purchases) of goods and/or services have been made for the particular tax period. However, these registered persons do not have to file GSTR 2 –
Composition Dealers
Non-resident taxable entities
Persons liable to collect TCS
Entities that deduct TDS
Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)
GSTR 2 Filing Due Date -
GSTR 2 due date is the 15th of next month for the business whose turnover is more than 1.5 Crores.
For a business with less than 1.5 Crore turnover, GSTR 2 is to be filed on monthly basis.
Here’s the Step by Step Procedure for Filing GSTR 2 Form Online -
Taxpayers Name and GSTIN – Here, you need to fill in the 15-digit Goods and Services Taxpayer Identification Number of your business. GSTIN is a unique number that is allocated to each respective unit, once they are registered under GST.
Time of the year -The exact month and year for which the incoming suppliers need to be specified are being filed.
Inward Supplies except for Reverse Charge – This includes invoicing of all purchase transactions and inward supplies under this heading, in addition, a reverse charge is invited. This heading is auto-populated from GSTR 2A.
Reverse Charge on Inward Supplies –Any purchase transaction that has a reverse charge on them will be included in this section. These inputs are a part of Table 4.
Goods received from overseas – During the GSTR 2 filing, taxpayers should fill the following section with rate-wise information of all imports made during the tax period.
Amendments to inward supplies – Any input entered in Table 3, 4, or 5 in this section can be amended. Any input from previous months needs to be changed which can be edited here. Changes to a particular GSTR 2 for one month can only be made in subsequent months. Therefore, Table 6 is used to edit or modify GSTR 2 of previous months. Supplies are received from the taxable person and exempt from GST.
ISD Credit Received – Table 8 contains all inputs of credit received from a registered input service distributor (ISD).
TDS and TCS Credit – If a taxpayer engages in TDS-related transactions or sells goods online through the eCommerce platform, such information should be known in this section.
Advances Paid and Adjusted on Account – In situations when the business or taxpayer has already paid advance taxes or has been adjusted for accounts from previous periods, those transactions should be recorded in this section.
Reversal of Input Tax Credits – In this section, one should refer to the details of input tax credit (ITC) that they are not liable to claim due to the relevant conditions.
Changes of sum in output tax – Many times, business transactions have a mismatch in taxes that need to be adjusted. There is a mismatch in all these transactions from GSTR 3 which needs to be recorded in this section.
HSN Summary of Inward Supplies – Taxpayers will have to specify the HSN code of all supplies falling within this section.
Benefits of GSTR 2
The benefit of this auto-populated statement is given below:
This plays an important role in reducing the time it takes to file GSTR 3B and simplifies the overall process.
Reconciliation refers to the maintenance of records of all transactions occurring during a specific period. With the advent of GSTR 2B, taxpayers can now reconcile between the auto-populated statement and the taxpayer's account book details. Therefore, taxpayers can ensure that the credit is reversed by performing this reconciliation, and no credit is taken twice.
This statement reduces the possibility of making errors, resulting in more accurate descriptions.
What happens if GSTR 2 is filed late?
According to The Central Goods and Services Act, the GST Council has the right to recover interest on late payment of taxes if the person has mistakenly or intentionally missed the tax-paying date. 18% tax is levied per year. This will have to be paid to the taxpayer on the amount of tax owed. The date of payment (16th day of the month) will be the time from the date of payment. Late fees of Rs. 100 per day per act. So it is 100 under CGST and 100 under SGST. Total Rs. 200 / day. Maximum Rs. 5,000. There is no late fee at IGST.
What happens if GSTR 2 is not filed?
If the GSTR-2 return is not filed, then the next return will not be filed for GSTR 3. Therefore, late filing of GST returns will lead to heavy fines and penalties.
Note - The filing of GSTR 2 forms is currently suspended. (2021)
Disclaimer: This article is intended for general consumption only. The information in the article was correct at the time of publication, but it is subject to change due to changes in government rules and regulations. The contents of the blog may not be copied unless prior permission is obtained.
You can manage your invoices from the OneGST app and also file GSTR-2. Download the OneGST app and create an invoice. For any queries feel free to reach out to us on +91 8955002477. You can sign up for our newspaper, in which we will keep you updated about GST.
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