The Form GSTR-2 contains 13 tables, most of which is auto-populated based on the returns submitted by your supplier. To know, how these details are auto-populated. On these auto-populated details, you may have to perform the actions such as ‘Add’ ‘Modify’, ‘Reject ‘and ‘Pending’ depending on the situation. To learn more on when these actions need to be performed.
Let us discuss how to file GSTR-2 return and the details to be furnished in it
1. Details of GSTIN and traders details.
In the above table 1, you need to capture the GSTIN allotted to you. Based on the GSTIN, table 2(a) and 2(b) would be auto-populated with details furnished during registration or enrollment
2. Details of inward supplies received from a registered person other than the supplies attracting reverse charge
In the above table, invoice-wise rate-wise information of inward supplies will be captured. These details will be auto-populated from GSTR-2A based on outward supplies details reported by the supplier in GSTR-1 pertaining to the return period. In the above table, the column 1 to 11 will be auto populated based on the invoices uploaded by your supplier in GSTR-1. From 12 to 16, details needs to be manually captured.
Let us discuss how to file GSTR-2 – table 6 in detailed
|1||Your supplier number will be captured|
|2 to 4||Invoice details such as Invoice Number, Invoice Date and Invoice value will be captured.|
|6||Rate of tax will be captured here. In case, there is a single invoice with goods or services attracting multiple rate, let’s say, 18% and 28%, then the invoice will be split rate wise and details will be shown in 2 different lines.|
|7 to 11||Here, the amount of tax such as CGST and SGST, IGST and Cess as applicable paid on the inward supplies will be captured.|
|11||In place of supply, it will capture the State/UT where the supplies were delivered.|
The details in the above columns will be auto-populated based on your suppliers GSTR-1.
Based on the auto populated data available, you may have to perform any of the following actions after reconciling the invoices of GSTR – 2A and your books.
To know more on on the action to be performed in GSTR-2 filing , please read our blog Actions on GSTR-2
Please note, if there are some invoices which are not uploaded by your supplier, you have add those invoices. In which case, all the details in Column 1-11 need to be manually filled in the portal.
The next task that needs to be performed is to mention whether you are eligible to avail credit or not in column no 12 ‘Whether input or input service/ Capital goods (incl plant and machinery)/ Ineligible for ITC’.
If you are eligible for availing the ITC (complete or partial) of tax paid in the particular invoice, you have to select the nature of inward supplies as:
- Inputs : Inward supply of goods
- Input services : inward supply of services,
- Capital Goods : ITC pertaining purchase of capital goods
In case, you are not eligible for availing the complete amount of tax mentioned in the invoice, you have to select ‘Ineligible’ available in the list.
Depending upon the usage of inputs or input services whether used for business purpose or non-business purpose or exempt supplies, you can claim the ITC accordingly. Let is discuss this in detail with 4 different business scenarios
If the inputs or input services mentioned in the invoice are exclusively used for taxable supplies, you will be eligible to claim the complete amount of tax mentioned in the invoice. In such a case, under column 12 select the nature of inward supplies as Inputs/Input services/Capital goods as applicable and mention the complete amount of tax paid in ‘amount of ITC available’ under table 13, 14, 15 and 16.
If the inputs or input services mentioned in the invoice are exclusively used for making exempt supplies or used for non-business purpose, you will not be eligible to claim the ITC. In column 12, select the nature as ‘Ineligible’ and the complete amount of tax mentioned in the invoice will be ineligible. Therefore, the ‘amount of ITC available’ under table 13, 14, 15 and 16 will be zero.
In case, if the input or input services mentioned in the invoice are partially used for making exempt supplies or used for non-business purpose and if you are able to identify the portion of inward supplies which is used for exempt or non-business purpose, you have to reverse the proportionate amount from the tax paid in the invoice. The remaining amount will be your eligible ITC.
In such case, you have to selected nature of inward supplies (Inputs/Input services/Capital goods) and mention only the eligible amount of ITC in ‘amount of ITC available’ under table 13, 14, 15 and 16 as applicable.
For example, Electronic World, a dealer in computer and accessories, had purchased 10 Monitors at Rs 7,000 each. The details of Inward supplies are given below.
|Date||Invoice No||Goods||QTY||Rate||Value||GST @ 28%|
|15th July,2017||LL/023||Monitor||10||7,000/Nos||70,000||19,600(CGST 9,800 + SGST 9,800|
Out of 10 monitors from the above inward supplies, 2 were used for non-business purpose (personal use).In this case, inputs from an invoice are partially used for taxable supplies as well as for non-business purpose. Also, Electronic World can clearly identify the invoice (from which these monitors are used for personal purpose) and the amount of tax paid on monitors used for non-business purpose which Rs 3,920 (on 2 monitors)
Hence, the ‘amount of ITC available’ in table 13 to 16 will be Rs 15,680 (CGST 7,840 in table 14 and SGST 7,840 in table 15). The eligible ITC of 15,680 is arrived as shown below:
|Total Input Tax Credit||19,600|
|Less :Amount of tax paid on inward supplies used for non-business purpose||3,920|
|Eligible Input Tax credit||15,680|
In case, the inputs or input services are partially used for both taxable supplies, exempt supplies and for non-business purpose but you are unable identify the invoice (from which these inputs or input services are used for making exempt supplies or non-business purpose) and the amount of tax paid those inputs or input services, you will not be able arrive at the Ineligible ITC at Invoice level and reversal at invoice level will not be possible.
As a result, you need to mark such inward supplies as eligible (by selecting the Nature of ITC in Column 12) and mention the complete amount of tax paid in ‘amount of ITC available’ under table 13, 14, 15 and 16.
Later, you need to determine the ineligible ITC pertaining to above Invoices and the ineligible amount needs to be mentioned in table 11 of GSTR-2.
Click here to download GSTR-2 Format
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Source : http://blogs.tallysolutions.com/how-to-file-gstr-2-part1/