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What is GSTR 2? Everyone Must Know πŸ“‘

This is a purchase return and it is needed to be filled by every GST registered person. Here the taxpayers enter their detail which is related to the inward supplies in GSTR 2 purchase return. GSTR 2 is a monthly tax return which shows the purchases that you have made for any particular month. If you make purchases from any registered vendors, then you will get information from their sales return in the GSTN portal as GSTR-2A. Before filing your return, you can check it. If there is any mistake, you can change it as per your choice.

You can find 11 subdivisions in GSTR filling. As a taxable person, you should make these returns. From the below article get every detail about GSTR-2. You can say GSTR 2 is a summary of every purchase transaction of any business for any particular month. You need to fill GSTR 2 on or before the 15th of the month and after that, you may not have the chance of filing the details. As a registered person, you need to submit all the details of your inward supply and it should be filed by any non-resident taxable person, or any input service distributor or any person who is paying tax under section 10 or section 51.

GSTR-2A is basically an automatically generated return for inward supplies. In GSTR 1, the dealer will provide their details regarding the invoice to the buyers and for GSTR 2, the buyer will get all the information regarding the same.

What is GSTR 2?

If you make necessary changes of your GSTR-2A and file it as GSTR-2, then your vendor will also get notifications and they can amend their return using a GSTR-1A form.


When you can file GSTR-2?

You should fill your purchase details of any specific month before the 15th of the following month. As an example, if you are filling GSTR-2 for the month of March, then you should file it before the 15th of April. For correcting any error you will have a 5-day gap between GSTR 1 and GSTR 2.

How to file GSTR 2?

After understanding GSTR 2, you need to understand the process of filing GSTR 2. Here the details of filing GSTR 2 are given. If you have enrolled yourself in the GST registration portal, you will be able to view and access the dashboard for filing GSTR 2 by the same.

  • At first, you need to log on to the GST portal with valid details.
  • Now visit GSTR 2 slab by clicking return dashboard and then select the financial year and return filing period
  • Click Prepare Online on GSTR 2 tab.
  • Now you will see 12 columns where you need to put appropriate data. To make sure that the details are available in GSTR-2 you can click on Generate GSTR-2.
  • Carefully put all the details of you and complete every column before submission. Because after submission, you will not be able to modify the invoice type, invoice data, and POS.
  • If the credit or debit note is not updated there, you can add it by clicking the admission invoice.
  • Carefully update credit and debit details, goods and services received from the supplier and eligibility of credit and credit availed/reduced on them.
  • Update every bill of entry details.
  • Put all the details of advance received and liability on it.
  • Now create the GSTR 2 summary report.

Who should file GSTR-2?

If you are a taxpayer under the GST Act, you should fill GSTR or GST return even if you don’t have an inward transaction of goods and services for any specific period. All the input service distributors, composition dealers, and non-resident taxpayers need to file GST return file 2.

GSTR-2 late fees and penalty

If you fill GSTR 2 in late, then you have to make a penalty of Rs 100 per day from the due date of submission. This late fee or penalty is payable for the time from when the taxpayer will fail to file this return. The maximum penalty is up to Rs 5000. The late fees are only for SGST, CGST but not for IGST. If you fall under the category of SGST and CGST, then you have to make late fees 100 for SGST and 100 for CGST, so the total amount to be made will be 200 per day.

The interest is basically calculated 18 percent per annum after crossing the due date for GST payment. This calculation is made depending on the amount of outstanding tax to be paid.

Why is GSTR 2 important?

It contains the details of all the purchase transactions of any registered dealer for a month. It can be also included with purchases where the reverse charges are applied. This is filled by a registered dealer and the government uses it for checking buyer-seller reconciliation.

What is buyer-seller reconciliation?

This process is also known as invoice matching where the Government matches taxable sales by the seller and taxable purchases by the buyers. As an example, if you buy 100 pens worth Rs,500 from stationery, the stationery needs to show Rs 500 sales in his GSTR 1 and you need to show the same Rs in GSTR 2 for claiming ITC. If the amount doesn’t match, you cannot claim ITC.

What happens if GSTR 2 is not filled?

If you don’t fill GSTR 2, you will not be able to fill the next return GSTR 3. However, not filing GSTR 2 may lead to a heavy fine and penalty fees.

How you can revise GSTR-2?

Once GSTR 2 is filled, you will not be able to revise it. If there is any mistake in your GSTR 2, you can revise it in next month’s return. As an example, if there is any mistake regarding the payment of the month of September, then you can do the rectification for October.

These are all about filling GSTR 2. You can get details about it from the government GST portal or nearest income tax advisor. Check every detail of filing GSTR 2 and get ready for filling your GSTR 2.

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