Guide to GSTR-2

GSTR-2 is a crucial GST Return form that needs to be filed by registered taxpayers in India as part of the Goods and Services Tax (GST) system. It contains details of all the inward supplies of goods and services received by the taxpayer during a particular tax period. Filing GSTR-2 is important to claim input tax credit and reconcile the details of inward supplies with those of the suppliers. However, the process of filing GSTR-2 can be complex and time-consuming, especially for first-time filers.

Every GST-registered person is obliged to submit GSTR-2, a purchase return. The GSTR 2 purchase return requires taxpayers to provide information pertinent to their inward supplies. This guide to GSTR-2 aims to provide a comprehensive overview of the form and help taxpayers understand the process of filing it correctly and on time.

When to File GSTR-2?

Before the 15th of the next month, the specifics of the purchases made during a given month must be filed. For instance, if you need to submit a GSTR2 form for March, you must do it by April 15th. Similarly, the GSTR2 for May must be completed by the 15th, and so on.

Pre-Requisites for Filing GSTR-2

GSTR-2 return filing process also requires an individual to meet a specific set of requirements and have a particular set of documents on their person, just like it does in the case of any other registration process involving the government. The following state the requirements:

• Must possess the 15-digit PAN-based GSTIN and be a registered taxpayer with the GST council.
• Not possessing a Unique Identification Number or a composition vendor (UIN). Additionally, they should not be a GST-registered non-resident foreign taxpayer.
• Use the information from your GSTR-2A form, which you may find in your GST portal. They must carry complete invoices for their transactions to cross-verify this data. This also covers intrastate, interstate, business-to-business, and retail transactions. The same applies to purchases made with supplies that are either exempt from GST or categorised as non-GST products.
• Finally, you will require an OTP that will soon be delivered to your phone, enabling you to confirm your return using either a digital signature certificate or an electronic verification code. Additionally, you can use an Aadhaar-based e-sign filing system to submit your GST returns.

What is included in GSTR-2 form?

GSTR-2 form requires thirteen important fields to be filled. These are discussed below:

1. The taxpayer’s name
2. All GST-registered firms are given a unique 15-digit Goods and Services Taxpayer Identification Number (GSTIN) based on their PANs.
3. Information about the inbound supply other than those that are subject to a reverse charge
4. Information regarding the purchased items that are subject to a reverse charge for inward supplies
5. Capital goods and inputs received on a bill of entry from SEZ entities or abroad.
6. Amendments to information about inbound supply that was included in filings for earlier taxation periods
7. Supplies obtained from taxable composition individuals, exempt or zero-rated GST supplies received, and non-GST supplies.
8. ITC, or input tax credit, obtained from an authorised input service distributor
9. Information on any TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) received, such as from an online shopping site.
10. A combined statement showing all advances made and adjusted for supplier receipts
11. Information on any cancellation or reclaiming of input tax credits
12. Information regarding any production tax additions or decreases in case of mismatch or other situations
13. HSN’s concise list of commodities purchased for internal supplies. HSN refers to the “Harmonized System of Nomenclature” in this context, a widely used method for the systematic classification of goods.

Conclusion

Filing GSTR-2 is an important requirement under the GST regime for claiming input tax credit and reconciling the details of inward supplies with those of the suppliers. While the process can be complex, with the help of this guide, taxpayers can navigate it smoothly and ensure timely and accurate filing. It is crucial to file GSTR-2 on time to avoid penalties and to maintain compliance with GST regulations. By following the guidelines and best practices outlined in this guide, taxpayers can file GSTR-2 with confidence and ease.