March 05, 2021
Each and every business in India needs to file GSTR 2 if they are registered in Goods and Service Tax. A clear definition for the question What is GSTR 2 is that it includes all the details of all purchases made in a particular month. It contains the details of all purchases and supplies. Taxpayers should provide the details of all inward supplies.
GSTR 2 contains details about all the purchases and transactions. It is used by the government to check with the taxpayers GSTR 1 for the buyer-seller reconciliation. Buyer seller reconciliation is the process of checking whether the details given by the buyer and seller are matching. It is important because ITC will be available if only both the details matches.
For example: Sara buys books for Rs.1000 from Diya stationery shop. Diya stationery must show the sale of Rs.1000 in GSTR 1 and Sara must show purchase of Rs.1000 in GSTR 2 to claim ITC.
As per the Act: GSTR-2 due date for Filing GSTR-2 is 15th of next month. There is a 5 days gap between filing GSTR 1 and GSTR 2. GSTR 2 timeline is the 15th day of every month. GSTR 2 return is a type of GST in which the taxpayer needs to register and pay tax accordingly. There are many types of GST returns. It includes GSTR 2, GSTR 2A etc. GSTR 2 return shows the transactions made in a particular month.
GSTR 3 cannot be filed if filing of GSTR 2 is not done properly. It will also lead to many perplexities and many question your transparency in business transactions. It will also lead to many fines and penalties.
Delay in filing of GSTR 2 may lead to fines and penalties. Interest is 18% per annum. It is the taxpayer who is calculating the tax to be paid.The late fee is Rs. 100 per day per Act. It is 100 under CGST & 100 under SGST. Total will be Rs. 200/day. The maximum is Rs. 5,000. There is no late fee on IGST.
Every registered person should file GSTR 2 whether the transactions occur or not. If anyone skips the filing of GSTR 2 is forced to pay fines and penalties. The filing of GSTR 2 should be done on the 15th day of every month. There are few exceptions. Following registered people do not have to file GSTR 2:
Once submitted, GSTR 2 cannot be changed. If there is any mistake the return can be changed in the next month’s return. If a mistake is made in January it can be changed in February. After filing the details about GSTR 2 is automatically generated in GSTR 2A through GSTN portal. GSTR 2A is a purchase-related tax return that is automatically generated in the GSTN portal. GSTR 2B provides ITC details and it remains constant for a period. GSTR 2A rules is that it is a read-only document. All the edits must be done in GSTR 2.
Under GST there are 13 tables and sections. In each column, the taxpayer needs to pay certain details. Many of them are not mandatory for all businesses.Table 1, 2, and 13 are mandatory for all. Following are the type of information you need to fill while filing GSTR 2:
How to file GSTR 2 in the GST portal is an important question. To file GSTR 2 you need the following elements: