How to file GSTR2?

How to file GSTR2?

Filing GSTR2

Filing GSTR2

GST has several filings like GSTR1A, GSTR1, GSTR2, GSTR3, etc. But before moving on to what is GSTR2 let us first see what is GSTR or GST returns filing.

What is GSTR or GST returns filing?

The GST returns filing is determined by the amount of revenue collected by your business and if your business falls in the compulsory GSTR filing category of business. The filings that will be collected by GST e-filing are that all tax payers have to pay monthly three returns, one quarterly return and one annual return. The job works and ecommerce companies will have to file one additional return every month.
GST implementation has started this year (2017) by filtering all India’s indirect tax system. GST registration will become a must for all the companies that are involved in buying and selling or delivery of services. The business that crosses 10 lakhs per year are made to register in GST in hilly areas while it is declared 20 lakhs for rest of the country. The entities having GST registration are required to file GST returns. GST returns filing is mandatory for all GST registered entities irrespective of any activity or business during the return filing period.
The registration holders will have to file GSTR-1(details of outward supplies) on the 10th of each month, GSTR-2 (details of inward supplies) on the 15th of each month and GSTR-3 (monthly return). The tax payers would be required to file GSTR-4 every quarter on 18th of the month next to the quarter. And, annual GST must be filed by all GST registered entities on or before 31st of December. Certain business will stay out of it while there are others who are to register on compulsory basis.

Procedure of GSTR filing

The GST regime every business will have to file three returns every month and they are GSTR1, GSTR2 and GSTR3. Unlike the current tax returns the returns will have to be filed electronically only so it will be called GST e-filed which can be done though a software by accessing a GST portal.
To begin with the GST will help to declare your supplies only and the input for purchases are automatically calculated based on your vendor’s submissions. This means if your vendor fails to declare your sale you will be denied credit to that transaction.
The government has passed the list of follow up on GST return filing to the tax payers at self by this:
1. 10 of every month you will declare your sales in GSTR1
2. Between 11th to 15th your purchase will get auto populated and you are allowed to make correction sin GSTR 2A
3. On 20th the auto populated GSTR 3 will be available for filing and payment.

What is GSTR2?

GSTR2 return includes details of purchases by the tax payer. GSTR2 is prefilled for a tax payer based on the GSTR1 filed by his supplier. All you need to do is validate this prefilled information and make modifications if required. For example, if you are buying good from company B, then company would have filed its GSTR1 and included your name as the buyer. Now the same information will be reflected in GSTR2 as purchases which you need to validate. GSTR2 will include the following details:
• The details of purchases auto-populated by the department
Invoices on which partial credit has been availed earlier has to be submitted in a separate table
GSTR2 is the return for inward supplies the entries in GSTR2 shall be mentioned by the buyer from the 12th to 15th of the succeeding month. The government has provided the new GST returns format and the mandatory requirement to quote HSN codes for goods and SAC codes for services in each table. The return formats have been updated for make the process easier for the tax payers. GSTR2 has a total of 13 headings. The person who is to pay tax will have most of these pre-filled.

Process of filing GSTR2

1. A tax payer needs to login at GST portal by using his/her user ID and password
2. After having successfully login the user will be able to see their dashboard
3. Now click on “service menu” and then click on Returns and you will arrive at GST return page. In this section it will display the services available on the GST portal and you can choose one according to your requirement and proceed further.

What are to be filed under GSTR2?

• Table 1 GSTIN- Every taxpayer will be allotted a state-wide PAN-based 15-digit Goods and services taxpayer identification number (GSTIN). The identification of taxpayer will be auto filled at the time of return filing in the future.
• Table 2- Name of the registered taxpayers- Name of the taxpayer, will be auto filled at the time of logging into the common GST portal. Trade amendment, if any must be provided separately.
• Table 3- Inward supplies – the inward received from a registered person other than supplies attracting reverse charge
• The recipient tax payer has option to act on the auto-populated information from GSTR2 A. The recipient can accept, reject, modify or keep the transaction pending for action.
• After the action is taken the recipient taxpayer have to mention whether he or she is eligible to avail input tax mentioned in the invoice needs to be filed.
• The recipient tax payer can also add the invoices those are not uploaded by the counter party supplier.
• Table 4- Inward supplies on which tax is to be paid on reverse charge
• Table 4A to be auto populated
• In case of invoices added by recent tax payer. In case of supplies received from registered person is required only if the invoice happens to been from other location instead of the recipients location
• The recipient has the option to accept invoices auto populated as well as to add the invoices related to reverse change only when the Time of supply arises in terms of the act
• Recipient taxpayer is required to declare in column no 12 whether the inward supplies are inputs, inputs services or capital goods.
• Table 5- In the table 5 the details relating to import of goods or capital goods from outside India as well as supplies by an SEZ unit to be reported rates wise by recipient tax payer
• Recipient to provide for Bill of entry information including 6 digits port code and 7 digits bill of entry number
• Taxable value- assessable value for custom purposes and computation is based on IGST. In case of imports, the GSTN would be recipient tax payer
• Table 6- amendment of information, rated wise, provided in earlier tax periods in table no. 3, 4 and 5 also original or amended information of debit or credit note.
• GSTIN not to be provided in case of export transactions.
• Table 7- supplies received from composition taxable person and other exempt
• Captures information on a gross value level
• Table 8- input service distributors credit received
• Contains 2 columns as 8A: ISD invoice and 8B:ISD credit note
• Table 9- TDS and TCS credit received
• This table will be auto populated
• Sales return and net value columns are not applicable in case of TDS in table 9
• Recipient can claim less ITC on an invoice depending on its use i.e whether for business purposes or non business purpose
• Table 10- Consolidate statement of advances adjusted
• Information of advances paid related to reverse charge supplies and the tax paid on it including adjustments against invoices issued
• Table 11- Input tax credit reversal/reclaim
• Table 12- addition and reduction of amount in output tax for mismatch and other reasons
• Additional liability due to mismatch as well as reduction in output liability due to rectification of mismatch on account of filing GSTR 3 of immediately preceding tax period
• Table 13- HSN wise summary all inward supplies must be reported in this section categorized on the basis of HSN codes

I’m a tax expert with over 10 years of professional experience. I’ve gained practical insights on GST and other Taxes during my tenture as a Tax expert and GST Trainer in Reach Accountant.
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