In our previous blog, we discussed about what is GSTR-2 and the relevance of GSTR-2A with GSTR-2. We also understood, that auto-populated details of inward supplies from GSTR-2A will be available in GSTR-2. Though the details are auto populated, you are required to prepare the return before submitting it. The preparation here refers to reconciliation of inward supplies available in GSTR-2A with the books of accounts, determining the additions, modifications and rejections which are required before submitting GSTR-2.
In order to help the businesses to prepare the GSTR-2 return, the GST portal allows the following actions to be performed on the auto-populated details available in GSTR-2.
Let us discuss each of the above actions on GSTR-2 in detail.
The auto-populated invoices which are matching with your books of account and there are no discrepancies related to invoice value, tax value and so on, you have to accept such invoices using this ‘Accept’ action.
The ‘Add’ action in GSTR-2 allows you to add the additional details which are required to be furnished in GSTR-2, which are not part of GSTR-2A. In GSTR-2, the details of imports, supplies attracting reverse charge that have been received by registered persons and so on are required to be added by using the ‘Add’ action.
Also, if any of your inward supplies received from registered suppliers are not reflecting in GSTR-2A, they need to be added using the above action.
The ‘Modify’ action in GSTR-2 needs to be performed if the invoice details are incorrect. This could happen, if your supplier has made an error while uploading the invoice details in GSTR-1. You can use the ‘Modify’ action to rectify or modify the details.
The ‘Reject” action needs to be performed, if any of the invoices auto-populated in GSTR-2A have not been received by you, and need to be rejected. This occurs, if the supplier has wrongly mentioned your GSTIN but the actual recipient is different. This needs to be rejected using the above option.
Consider a situation, where the date of supply of goods by your supplier and the date of receipt of goods are in two different months. Let’s say, the supplier has billed and dispatched the goods on 31st July, 2017 but you have received the goods on 3rd August, 2017.
In this case, you will become eligible to claim ITC only in the month of August 2017. This is because, only when the invoice and the goods are received, will you be allowed to claim ITC On provisional basis. This then becomes your eligible (final) ITC when your supplier furnishes his return along with the payment of tax.
However, your supplier is required to upload and pay the tax liabilities on the above invoice in the month of July. This invoice will be part of GSTR-2A and thus you have to mark it as ‘Pending’ for the month of July. Once an invoice is marked as ‘Pending’, it will appear in the month of August 2017, for you to accept and claim input credit in the month of August 2017.
In performing any of the above actions, businesses needs to take utmost care and caution as this will have direct bearing on their ITC claim. Technology will play a key role in assisting and ensuring accurate reconciliation is carried out, thereby saving time and mitigating the risk of ITC loss.
In our next blog, ‘Guide to File GSTR-2’, we will discuss about the components and details to be furnished in GSTR-2A.
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Source : http://blogs.tallysolutions.com/actions-for-submitting-gstr-2/