All important details about GSTR-2 filing for tax payers

GSTR-2 is an application of Return for Inward supplies for the tax period. It is the next step for the taxpayer once he has filed GSTR-1.

Inward supply means receiving goods or services or both whether by purchase, acquisition or any other means with or without consideration.  In this application, all aspects related to Inward supply is being covered.

Information Auto-populated in GSTR-2

  • Details of tax collected at source equipped by an e-commerce operator
  • Invoice wise details of all supplies acknowledged from registered persons
  • Details of invoices furnished by a non-resident taxable person in his return in FORM GSTR-5
  • Details of invoices fitted out by an Input Service Distributor in his return in FORM GSTR-6
  • Details of tax deducted at source furnished by the withheld in FORM GSTR-7

Here is a step-by-step process of filing GSTR-2:

  • Login to GST Portal

  • Go to Services, and click on Return

  • Select the month for which you are filing GSTR-2
  • Click on Prepare Online under GSTR-2

 

  • Fill all the details that need to be filled.
  • Do note, that only those details that are not auto-populated in your GSTR-2A or the details that have to be changed should be entered in these tiles.

GSTR-2 – Details on Invoices

  • Inward supplies acknowledged from registered person including Reverse Charge supplies:

Information of all misplaced inward supplies from registered dealers should be entered here. This will also include inward supplies accountable for the reverse charge.

  • For this, Click on ‘ADD MISSING INVOICE DETAILS’ to add details of any inward supplies from a registered person and reverse charge supplies missing in GSTR-2A.
  • Fill out the necessary details& then click on Add Details:

Import of Inputs/ Capital Goods and Supplies received from SEZ:

Any import of Inputs and Capital Goods including goods received from SEZ is to be entered in this tile:

  • Click on ‘ADD BOE’
  • Enter the necessary details and click on save:

    Import of Service by the registered person:
  • Click on ‘ADD DETAILS’
  • Enter the necessary details that need to be filled

  • Then Click on ‘SAVE’

    Debit/Credit Notes for supplies from a registered person:

    Any debit note or credit note received from a registered dealer but absent in GSTR-2A should be entered here.

  • Click on ‘ADD CREDIT NOTE/DEBIT NOTE’
  • Add necessary details
  • Then Click on ‘SAVE’

 

Other Details of GSTR-2:

Supplies from composition taxable person & other exempt/nil rated/non-GST supplies: 

  • Total inward supplies from composition dealers, in addition, all inward supplies which are exempt and nil rated have to be entered here.
  • Click on ‘EDIT’, then enter the values and click on the ‘SAVE’ button.

    The advance amount paid for reverse charge supplies

    All early payment paid for supplies liable to reverse charge has to be entered here. This will surge your output tax liability as you are liable to pay tax on RCM basis.

  • Click on ‘ADD DETAILS’
  • Enter the Point of sale and the Taxable Value based on the GST Rate. Finally, Click on ‘SAVE’

Modification of advance amount paid earlier for reverse charge supplies:

  • Any adjustments to be done to details mentioned in tile 10A in previous returns has to be done here.

HSN summary of inward supplies:

  • HSN Code wise details of inwards supplies have to be provided while filing GSTR-2.
  • Click on ‘ADD DETAILS’
  • Enter the necessary details and save

Input Tax Credit Reversal/Reclaim

  • There are certain conditions for claiming ITC on inward supplies. If the same is not satisfied the ITC has to be reversed. The details of ITC reversed have to be entered here. Click on ‘SAVE’ button after entering the details.

  • Once all the details have been entered the return a declaration is to be given and the return can be submitted online.

 

ConclusionGSTR-2 is a very much necessary for GST return. Any blunder or alteration or addition not reported in GSTR-2 will impact your input tax credit eligibility. Unlike the traditional return filing, in GSTR-2, most of the information is auto-populated based on the counter party’s declaration of invoices.

With the amount details to be captured in each of the tables and the number of actions to be performed before filing GSTR-2, by now, you would have measured the time and effort required to file GSTR-2.

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