GSTR 2A and GSTR 2B: Understanding the Differences

As a business owner or a GST taxpayer, it is important to be aware of the various GST returns and their functionalities. One such return is GSTR 2A, which plays a crucial role in the reconciliation process for Input Tax Credit (ITC) claims. Another important return to consider is GSTR 2B, which provides a comprehensive view of the eligible ITC available. In this article, we will explore the differences between GSTR 2A and GSTR 2B, their uses, and examples to gain a better understanding of these GST returns.

What is GSTR 2A?

GSTR 2A is an auto-generated return that contains the details of inward supplies or purchases that are auto-populated based on the information furnished by the suppliers in their GSTR 1. It serves as a reference document for the recipient taxpayer to verify the correctness of the supplies made by their suppliers.

Examples of GSTR 2A:

Invoice number and date
Taxable value of goods or services
Applicable tax rates (CGST, SGST, IGST, or CESS)
Amount of tax (CGST, SGST, IGST, or CESS)

Uses of GSTR 2A:

GSTR 2A serves several crucial purposes, such as:

Verification of data between GSTR 2A and GSTR 3B
Reconciliation of Input Tax Credit (ITC)
Identification of missing invoices or discrepancies
Assessment of supplier’s compliance

What is GSTR 2B?

GSTR 2B is another auto-generated return that provides a summarized view of the eligible ITC available for a particular tax period. It considers the details of inward supplies, including those received from suppliers, imports, and documents issued under the reverse charge mechanism.

Examples of GSTR 2B:

Total ITC available
ITC from imports
ITC from documents issued under reverse charge
ITC available from the supplier’s shared by Input Service Distributor (ISD)

Uses of GSTR 2B:

GSTR 2B is beneficial in various ways:

Allows businesses to ensure that ITC claims are accurate and complete
Helps in the reconciliation of ITC claims with suppliers
Provides a summarized view of eligible ITC for a specific period

Differences between GSTR 2A and GSTR 2B:

Difference Area	GSTR 2A	GSTR 2B
Source	Data from suppliers	Data from suppliers, imports, reverse charge, and ISD
Auto-generation	Auto-generated return based on suppliers’ GSTR 1	Auto-generated return based on suppliers’ GSTR 1, GSTR 5, GSTR 6, and GSTR 7
Frequency	Monthly	Monthly
Eligible ITC	Does not explicitly show available ITC	Provides a comprehensive view of eligible ITC
Consideration	Supplies made during the particular tax period	Supplies made during the particular tax period, including imports and reverse charge
Data validation	Recipient is responsible for validation and reconciliation	Data is auto-validated and considered reliable, but reconciliation is still recommended
Input tax credit	Helps in the reconciliation of ITC claimed in GSTR 3B	Provides a summarized view of eligible ITC for a specific period
Suitable for	Verification and reconciliation with GSTR 3B	Assessment and verification of eligible ITC availment
Includes	Invoices, debit notes, and credit notes	Invoices, debit notes, credit notes, and documents issued under reverse charge
Accessibility	Readily available after suppliers’ filing of GSTR 1	Available after the 12th of the following month

Conclusion:

While both GSTR 2A and GSTR 2B serve their unique purpose in the GST framework, they differ in terms of data sources, auto-generation, eligible ITC representation, and accessibility. GSTR 2A focuses on supplier data for ITC reconciliation, while GSTR 2B provides a summarized view of eligible ITC from multiple sources. It is essential for businesses to utilize both returns for accurate GST compliance and effective utilization of input tax credits.

10 Differences Between gstr 2a and 2b