1. What is GSTR-2?
Every registered taxable person is required to give details of Inward Supply, i.e., purchases for a tax period in GSTR-2.
2. Why is GSTR-2 important?
GSTR-2 contains details of all the purchases transactions of a registered dealer for a month. It will also include purchases on which reverse charge applies.
The GSTR-2 filed by a registered dealer is used by the government to check with the sellers’ GSTR-1for buyer-seller reconciliation.
3. What is buyer-seller reconciliation?
Buyer-seller reconciliation or invoice matching or is a process of matching taxable sales by the seller with the taxable purchases of the buyer.
It is vital because ITC on purchases will only be available if the details of purchases filed in GSTR-2 return of buyer matches with the details of sales filed in GSTR-1 of the seller.
For example, Ajay buys 100 pens worth Rs. 500 from Vijay Stationery. Vijay Stationery must show Rs. 500 sales in his GSTR-1. Ajay must show the same Rs. 500 purchase in GSTR-2 to claim ITC. Unless the amounts match, Ajay will not be able to claim ITC.
Note: Most of the headings under GSTR-2 are auto-populated from counter-party GST return so it will involve minimal time.
4. When is GSTR-2 due?
As per the Act: Due Date for Filing GSTR-2 is 15th of next month.
There is a 5-day gap between GSTR-1 & GSTR-2 filing to correct any errors and discrepancies.
For business’ with turnover less than 1.5 crores, quarterly returns are applicable whose due dates will be announced later.
Latest Update for July 2017:
Due date for GSTR-2 for July has been extended to 30th Nov
As per 22nd GST Council meeting of 6th October 2017
- Businesses with annual turnover up to 1.5 crores will submit quarterly returns. Taxes will be paid quarterly.
- Due dates of Aug & Sep will be declared later.
- Switch over to quarterly will happen from Oct-Dec 2017 cycle
(More details will be announced by the Govt.)
5. What happens if GSTR-2 is not filed?
If GSTR-2 return is not filed then the next return GSTR-3 cannot be filed. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty.
6. What happens if GSTR-2 is filed late?
If you delay in filing, you will be liable to pay interest and a late fee.
Interest is 18% per annum. It has to be calculated by the taxpayer on the amount of outstanding tax to be paid. The time period will be from the next day of filing (16th of the month) to the date of payment.
The late fee is Rs. 100 per day per Act. So it is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. The maximum is Rs. 5,000.There is no late fee on IGST.
7. Who should file GSTR-2?
Every registered person is required to file GSTR-2 irrespective of whether there are any transactions during the month or not.
However, these registered persons do not have to file GSTR 2 –
- Input Service Distributors
- Composition Dealers
- Non-resident taxable person
- Persons liable to collect TCS
- Persons liable to deduct TDS
- Suppliers of online information and database access or retrieval services (OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)
8. How to revise GSTR 2?
GSTR 2 once filed cannot be revised. Any mistake made in the return can be revised in the next month’s return. It means that if a mistake is made in September GSTR 2, rectification for the same can be made in October’s GSTR 2.
9. What is GSTR-2A?
When a seller files his GSTR-1, the information is captured in GSTR-2A. GSTR-2A is a purchase-related tax return that is automatically generated for each business by the GST portal.
It takes information from the seller’s GSTR-1. You are required to verify (and amend) this return before filing in on GST Portal.
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