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What is GSTR 2A?

GSTR-2A is a purchase-related document which is provided to each business registered on the GST portal. When the seller or counterparty of a company uploads the GSTR-1 and 5 forms, the GSTR 2A is generated automatically. It describes the transactions a business makes in a specific month, thus noting all invoice details. It is, however, a read-only document, serving only to inform a business of the invoice details of its sellers. Before filing their returns on the GST portal as GSTR 2, the company concerned should verify this form and correct any discrepancies.

How is GSTR 2A Generated

The GST portal auto-populates GSTR 2A with the information available from the returns of a company's vendors or counterparties in the following forms.

  • GSTR-1

  • GSTR-5

  • GSTR-6

  • GSTR-7

  • GSTR-8

It is generated in these instances mentioned below:

  • When transaction details are uploaded to the GSTR-1 Form by a seller (registered resident)

  • When transaction details are uploaded to the GSTR-5 Form by a seller (non-resident)

  • When the GSTR-6 Form is submitted by the Input Service Distributor

  • Noting the TDS and TCS information when a counterparty files the GSTR-7 and 8 Forms

Verification of GSTR 2A is necessary to file the GSTR-2 form. However, in some instances, the seller may defer the filing of GSTR-1. In that case, when filing their GST returns manually, the company concerned will need to fill out the necessary details. And to ensure consistency in the recording of information, the details submitted by a seller in GSTR-1 will be reflected in the next month in GSTR-2A of such a business.

What is the Difference Between GSTR 2A and GSTR 2B

GSTR 2A is auto-generated. It is a read-only document that solely intends to provide information. Review the following table to understand the difference between GSTR 2A and GSTR-2B.

Comparison Parameters

GSTR 2A

GSTR-2B

Purpose of Statement

The auto-generated statement provides input tax credit (ITC) data to the recipients of given supplies. It also includes the changes implemented later.

The auto-drafted statement provides input tax credit (ITC) details to the recipients of the given supplies. It is based on the supplier’s data given during every data period.

Nature of Statement

Dynamic in nature; this is because the changes reflect on a day-to-day basis. The information depends upon the supplier's reported documents.

Static in nature; the GSTR-2B cannot change based on the future actions of the supplier.

Availability

Monthly

Monthly

Information Sources

GSTR-1 or IFF, GSTR-5, GSTR-6, GSTR-7, GSTR-8, ICES

GSTR-1 or IFF, GSTR-5, GSTR-6, ICES

ITC Claims - Advisory

Does not include information/advisory on the action needed to be taken by a registered buyer

Does include an advisory against each section – such as whether the ITC is eligible, ineligible, or reversal; taxpayer must take action according to in his/her GSTR-3B

When does the ITC entries get transferred from sources?

GSTR-1: Saved, filed, or submitted

GSTR-6: Submitted

GSTR-7 and GSTR-8: Filed

GSTR-1, GSTR-5, or GSTR-6: Filed

Cut-Off date – To view the statement for a given tax period

Not applicable

The statement is generated on the 14th of the succeeding month

Maximum ITC entries that may  viewed on the GST portal

500 rows

1,000 rows

 

How to File GSTR-2A Return

As stated above, GSTR-2A is auto-populated based on other forms, meaning that a company need not file it manually. However, if an organisation finds any discrepancy in the proforma invoice details submitted by its seller in GSTR-1, they need to accept, reject, modify, or defer its acceptance. Since it is automatically generated, there is no GSTR 2A due date in question. However, if any information in that form requires modification, enterprises must do so in GSTR-2, and the due date is between the 11th and 15th of the month immediately following the month for which such GST returns are filed.

How to View GSTR 2A on GST Portal

Individuals need to follow the steps listed below to view this return form:

Step 1: Visit the official GST portal.

Step 2: Log in with your credentials.

Step 3: On the dashboard, click on “Services”.

Step 4: Click on "Returns" and then on "Dashboard Returns."

Step 5: The "File Returns" page will be displayed, where you need to fill in "Financial Year" and "Return Filing Period" before clicking on “Search”.

Step 6: After that, under GSTR-Download, one needs to click on the “View” option.

Step 7: The GSTR-2A ‘auto-drafted’ details page will then be shown.

By selecting the relevant titles, the concerned individual or organisation can view the featured information in this form.

Details of GSTR 2A

As per the government mandate, GSTR 2A contains seven headings. Those are:

  • GSTIN (GST Identification Number): GSTIN is a unique 15-digit PAN-based identification number issued under GST to every registered individual

  • Name of Taxpayer: The legal name and trade name of the registered person

PART-A

  • Invoice information on inward supplies obtained from a registered individual by a company, except for supplies that incur a reverse fee

  • Inward supply on which tax is attracted by the reverse fee

  • Both debit/credit notes and any changes earned in the current cycle

PART-B

  • Input Service Distributor (ISD) credit earned: It refers to distributors of input services and their branches. This title indicates the IDS credit and any adjustments in the existing tax era

PART-C

  • It is applicable to companies engaged in TDS transactions or online selling through an e-commerce platform for TDS and TCS credit obtained (including modifications thereof)

GSTR 3B form is a self-declared return. It summarises the Input Tax Credit (ITC) entitlement of an organisation. Taxpayers are required, as per the guidelines, to reconcile GSTR-2A with this form. It is crucial to ensure that a company does not evade any tax or accept loans over their current eligibility. In the event that a taxpayer is found to be claiming excess ITC, it shall be compensated with interest. Failure to comply will lead to fines. You may determine the effect of GSTR-2A on your business with the above details in mind. To keep your company compliant with the laid out rules, it is important to stay updated with regards to the subject. You can visit Finserv MARKETS for the same.

 

To know more about GST, visit Finserv MARKETS today!