GSTR 2 contains the details of all transactions and purchases made by the registered person in a particular month. It is necessary to check buyer-seller reconciliation. Both the GSTR 1 and GSTR 2 should match otherwise it will create many perplexities. The filing of GSTR 2 is necessary to maintain trust and transparency in businesses. GSTR 2 filing date is the 15th day of every month.

Details to be provided in GSTR 2 form

How to file GSTR 2 in gst portal and When to file GSTR 2  are relevant questions. It should be filed on or before the 15th day of every month. There are 13 headings in the GSTR 2 form. Following are the details to be filled in GSTR 2 form:

• GSTIN

GSTIN is the unique identification number for all registered tax people. The first two numbers are state code, and the next 10 digits are PAN numbers.

• Name of the Taxpayer

The legal name of the registered person and trade name must be included. Also include the month and year in which GSTR 2 is filed.

• Inward Supplies from Registered Taxable Person 

All purchase details of the registered person are auto-generated to the form by GSTR .1. It will have details of all purchase transactions. If the buyer did not file GSTR 1 and if the seller missed the transaction certain transactions may not be auto-populated. The buyer can manually add these transaction details and the seller will get a notification to accept it.

• Inward Supplies on which tax is to be paid on Reverse Charge

A registered dealer who is buying more than RS 5000 from an unregistered person is liable to pay reverse charges. All purchases on which reverse charge applies will be reported in this part.

4A.  Under this head, all purchases in which reverse charge specifically applies by law must include.

4B. This head includes purchases from the unregistered person from an unregistered dealer which is more than 5,000 per day.

4C. Under this head,   import of services must be included.

• Inputs/Capital goods received from Overseas or from SEZ units on a Bill of Entry

Import of inputs or capital goods received against a bill of entry must be mentioned under this head. Goods received from SEZ also come under this category. In 5A category, Import of inputs or capital received against a bill of entry should be marked and in 5B goods received from SEZ should be marked.

• 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]

A taxpayer cannot change the details once entered. The changes can be made in the next month’s GSTR 2 form. The taxpayer can amend the details of the earlier month. The information can be filled in manually. The seller needs to accept it.

6A: Revisions of all input goods and services. (except imports)

6B: Changes in the amount calculated in imported goods and services from SEZ can be made. In this head, the taxpayer must mention the changes made in the Bill of entry or import report.

6C: The taxpayer must report all debit and credit notes.  Any debit/credit note issued under the reverse charge mechanism will get auto-populated here from counter-party GSTR-1 and other applicable returns.

6D: Any changes in debit /credit note of previous months will be reported under this heading.  

• Supplies received from composition taxable person and other exempt/Nil rated/Non-GST supplies received

Under this head, all purchases from the composition dealer and exempt Non-GST supplies and nil-rated supplies are mentioned under here. Both inter-state and intra -state supplies should also be mentioned here.

• ISD Credit Received

Details of the input tax credit received from a registered Input Service Distributor should be mentioned here

• TDS and TCS Credit Received

TDS Credit Received: This section is applicable to the taxpayer who is engaged with specified bodies, especially the government. In such cases, the government will deduct a certain amount of transaction value.

TCS Credit Received: This section is only applicable to online sellers who are registered with E-commerce.  They should collect tax from the source at the time of money payment. This data will again be auto-populated from GSTR 8 of the GSTR operator.

• Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply

Any advance payment made during the month will appear here. If you paid advance tax on goods or services received during an earlier tax period, but only received the invoices this month, declare the details here. Advance receipts issued under reverse charge are also covered here. Part 1includes the advance amount paid for reverse charge supplies in the current month and also advances paid in earlier months against which invoices have been received in the current month. Part 2 includes changes to the above part I in relation to an earlier month.

• Input Tax Credit/Reclaim

ITC can be availed only on goods and services for business purposes. If they are used for non-business (personal) purposes, or for making exempt supplies ITC cannot be claimed. 

Under this head, the taxpayer should fill in details of ITC that cannot be claimed during the month due to various ITC rules. The 11A section will cover all input tax reversals for the current month. It will also include ITC reversal on account of exempt and personal supplies. In the 11B section the taxpayer can manually amend any details of ITC under 11A of earlier months.

1. Amount in terms of rule 37(2)– ITC will be reversed for invoices which were not paid within 180 days of issue.
2. Amount in terms of rule 39(1)(j)(ii)– This is for ISDs. If a credit note was issued by the seller to the HO then the ITC subsequently reduced will be reversed.
3. Amount in terms of rule 42(1)(m)– This is for businesses which use inputs for both business and non-business (personal) purpose. ITC used in the portion of input goods/services used for personal purpose must be reversed proportionately.
4. Amount in terms of rule 43(1)(h)– This is similar to above except that it concerns capital goods.
5. Amount in terms of rule 42 (2)(a)– This is calculated after the annual return is furnished. If total ITC on inputs of exempted/non-business purpose is more than the ITC actually reversed during the year then the difference amount will be added to output liability. Interest will be applicable.
6. Amount in terms of rule 42(2)(b)– This is is the opposite of the above. If total ITC on inputs of exempted/non-business purpose is less than the ITC actually reversed during the year then the difference amount can be reclaimed as ITC.

• Addition and Reduction of Amount of Output Tax for Mismatch and Other Reasons

This section includes any additional charges that can arise due to the corrections made to the GSTR-3 of the previous month. 

1. ITC claimed on mismatched/duplication of invoices/debit notes: If any mismatch in invoices occurs, there will be a double claiming of ITC. The excess ITC claimed will be reversed and adds to tax liability.
2. Tax liability on mismatched credit notes: Incorrect credit notes issued by the taxpayer will also result in incorrect ITC and it will be added to tax liability.
3. Reclaim on account of rectification of mismatched invoices/debit notes: In this case, the mismatch has led to claiming lower ITC. You are entitled to more ITC and so the additional amount will be reduced from the output tax liability.
4. Reclaim on account of rectification of mismatched credit note (Reduce): In this lower ITC has been claimed and will work in the same way as (c).
5. Negative tax liability from previous tax periods: This will occur due to excess tax paid during the previous months and will be reduced from the output tax liability of this month
6. Tax paid on advance in earlier tax periods and adjusted with tax on supplies made in the current tax period (Reduce): This refers to tax paid along with advance payments in earlier months for supplies received during this month.

• HSN Summary of Inward Supplies

This section requires a registered person to provide a HSN-wise summary of goods purchased. It will be entered by the taxpayer.

The above-described points will give a clear-cut answer to the question of how to file GSTR 2 in the GST portal. The process of filing GSTR 2 can be done easily by following the above steps. There are  types of GST returns and it includes GSTR 1, GSTR2, GSTR 3, GSTR 3B, GSTR 4 etc. These details are necessary to maintain transparency in businesses and its avoidance may lead to many liabilities and penalties.