GSTR-2 filing date for the month of July is due by 31st of October as per the latest update received from the GST Council of India. With the ongoing Return Filing process majority of the people are facing many technical issues and format based issues because of which they are not able to do the Return Filing on time.

Now that the GSTR-2 is the next biggest challenge we are breaking the format to make things simple and easy for you.

What is GSTR-2?

GSTR-2 is the process of recording and filing your Returns for your previous month’s INWARD Transactions, it could be either Goods or Services that the vendor processed over the period of one month. The vendor need to be registered with GSTN (Goods & Services Tax Network) portal and need to possess a GSTIN (Goods & Services Tax Identification Number) in order to File the Returns.

What sections does the GSTR-2 Filing format consist of?

In total the GSTR-2 Filing format consists of 13 sections that need to be filled and submitted to the GSTN Portal by the vendor. It consists of:

  • GSTIN
  • Legal name of the registered person
  • Inward supplies received from a registered person other than the supplies attracting reverse charge
  • Inward supplies on which tax is to be paid on reverse charge
  • Inputs/ Capital goods received from Overseas or from SEZ units on a Bill of Entry
  • Amendments to details of inward supplies furnished in returns for earlier tax periods in Tables 3, 4 and 5 [including debit notes/credit notes issued and their subsequent amendments]
  • Supplies received from composition taxable person and other exempt/Nil rated/Non GST supplies received
  • ISD credit received
  • TDS and TCS Credit received
  • Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply
  • Input Tax Credit Reversal / Reclaim
  • Addition and reduction of amount in output tax for mismatch and other reasons
  • HSN summary of inward supplies

Let’s break the format and understand what needs to be done in the individual sections:

1.) GSTIN: Your registered and allocated GSTIN by the Government of India will be Auto-populated.

2.) Name: Name will be automatically generated after signing into the GSTN portal.

3.) Turnover:We have two different sub-sections one asking for the Turnover in the previous year and the other for the total revenue generated between April to June 2017

In this section the vendor has to fill the details of his Inward supplies that he receives from a registered person who do not attract the Reverse charge. Your purchases (GSTR-2) is equal to other vendor’s sales (GSTR-1), the system auto generates certain data that has already been uploaded by the vendor during the GSTR-1 Filing.

But in case if the vendor didn’t file the GSTR-1 then you may have to enter the data manually. In case of modifications and incorrect data entry they have to be settled in the GSTR-1A.

4.) Inward supplies on which tax is to be paid on reverse charge :

In Reverse charge the receiver need to pay the tax, this section talks about the details of Inward supplies on which the tax has to be pain on the reverse charge basis.
There are three different sub-sections namely 4A, 4B, 4C.

  • 4A.) All the Inward transactions taken place between a Vendor and a Registered Supplier details should be furnished here attracting Reverse charge.
  • 4B.) All the Inward transactions taken place between a Vendor and an Unregistered Supplier details should be furnished here attracting Reverse charge.
  • 4C.) This section talks about Import Services attracting the Reverse charge.

5.) Inputs/ Capital goods received from Overseas or from SEZ units on a Bill of Entry:

In this Section the vendor has to furnish the details of his overseas or SEZ (Special Economic Zone) unit’s inward transactions on a bill. It contains two sub-sections:

  • 5A.) All the imports of the vendor from overseas which has a proper bill needs to be mentioned here along with the tax percentages, cess. The vendor also needs to mention the port code and bill numbers in this sub-section.
  • 5B.) All the imports or capital goods received from SEZ (Special Economic Zone) has to be furnished in this sub-section.

6.) Amendments to details of inward supplies furnished in returns for earlier tax periods in Tables 3, 4 and 5 [including debit notes/credit notes issued and their subsequent amendments]

In this section the vendor has to enter the incorrect details he/she furnished in the previous month as there will be no providence to change the same month. The seller also receives a message stating that the following changes have been made please confirm. This section contains 4 sub-sections:

  • 6A.) Changes or corrections needed on input goods/ Services other than imports from a SEZ.
  • 6B.) Corrections in tax amount or total amount on imported goods or SEZ supplied goods details should be furnished in this sub-section.
  • 6C.) The vendor should furnish the details of Debit and Credit note which was filed in the previous month.
  • 6D.) Corrections or changes that need to be filed for the previous month have to be filed under this sub-section.

7.) Supplies received from composition taxable person and other exempt/Nil rated/Non GST supplies received:

In this section the vendor has to furnish the details about the supplies received from the composite taxable person and other exempt/ Nil Rated/ Non GST supplies received. This contains two sub-sections:

  • 7A.) All the transactions taken place between two different states should be mentioned here.
  • 7B.) All the transactions taken place within the same state should be mentioned here.

8.) ISD credit received:

(ISD) Input Service Distributor is usually the head offices which will allocate the ITC to all the branches, in this section the vendor has to furnish the details of ITC credit received from a registered ISD.

  • 8A.) ISD Invoice details needs to be furnished in this sub-section by the vendor.
  • 8B.) ISD Credit Note details needs to be furnished in this sub-section by the vendor.

9.) TDS and TCS Credit received:

In this section the vendor has to furnish the details of TDS and TCS Credits that are received by vendor.

  • 9A.) TDS (Tax Deducted at Source) is an indirect tax collected by the Indian Authorities only when the vendor involves in specific contracts or with government then the vendor has to fill the TDS section.
  • 9B.) TCS (Tax Collected at Source) is collected by the seller from the buyer at the time of sale, This sub-section is only for those vendors who deals with the online sellers registered with the E-commerce operators.

10.) Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply:

This section talks about the consolidated statements of all the Advanced paid or Advance adjusted on the receipt of supply. It contains two super sections, two sub-sections and 4 Super sub-sections.

I.) Information of the current month.

  • 10A.) In this section the total Advance amount paid for Reverse charge Supplies in the tax period.
  • 10A (1).) Transactions that have been taken place within the state need to be furnished in this section.
  • 10A (2).) Transactions that have been taken place in between different states needs to be furnished in this section.
  • 10B.) Advance which paid in the earlier month but Receipt received current the month that details need to be furnished in this section.
  • 10B (1).) Transactions that have been taken place within the state need to be furnished in this section.
  • 10B (2).) Transactions that have been taken place in between different states needs to be furnished in this section.

II.) Information provided in the previous month.

In this section the vendor need to furnish the details of the transactions that have been carried out in the previous month.

11.) Input Tax Credit Reversal / Reclaim:

As per the GST Rules ITC can only be applied on business transactions, it was very clearly mentioned that any other purposes ITC cannot be claimed. In this section the vendor has to report the information that cannot be claimed in the month according to various rules. That is what they call as ITC Reversal or Reclaim.

11.A.) Current period tax information:

  • a.) Amount in terms of rule 2(2) of ITC Rules, to be added by the vendor.
  • b.) Amount in terms of rule 4(1) (I) (II) Rules, to be added by the vendor.
  • c.) Amount in terms of rule 7 (1) (m) of ITC Rules to be added.
  • d.) Amount in terms of rule 8 (1) (h) of ITC Rules to be added.
  • f.) Amount in terms of rule 7 (2) (b) of ITC Rules to be reduced.
  • g.) On account of amount paid subsequent to reversal of ITC to be reduced.
  • h.) Any other liability (To be specified)

11.B.) Amendments of information furnished in the previous month. Amendment information which has been furnished in the month. And the other talks about the any specific information to amend.

12.) Addition and reduction of amount in output tax for mismatch and other reasons:

In this section the vendor need to furnish the details about the additional and reduction of amounts in the output tax for mismatch and for quite few other reasons.

  • (a) ITC claimed on mismatched/duplication of invoices/debit notes Add
  • (b) Tax liability on mismatched credit notes Add
  • (c) Reclaim on account of rectification of mismatched invoices/debit notes Reduce
  • (d) Reclaim on account of rectification of mismatched credit note Reduce
  • (e) Negative tax liability from previous tax periods Reduce
  • (f) Tax paid on advance in earlier tax periods and adjusted with tax on supplies made in current tax period Reduce

13.) HSN summary of inward supplies:

HSN (Harmonized Serial Number) Codes of all the furnished goods or services has to be furnished in this section.

At the end of the document we will see a declaration stating that the information that we provide is appropriate and correct, once it is done you may upload the file.

To know more about GST Return Filing kindly visit: www.encomply.com

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Content Courtesy:

Krishna Sriteja.D

GST Content Specialist | Tax Technology Enthusiast

dksriteja@udyogsoftware.com

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