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What is GSTR 2?

March 05, 2021

What Is GSTR 2

What is GSTR 2?

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.

Importance of GSTR 2

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.

Due Date of GSTR 2 

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.

What happens if GSTR 2 is not filed?

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.

Results of Late filing of GSTR 2

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.

Who should file GSTR 2?

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:

  • Composition Dealers
  • Input service distributors
  • Persons liable to collect TCS
  • Non-resident taxable person
  • Personal liable to deduct TDS
  • Suppliers of online information and database access providers

Revise of 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.

GSTR 2 for Different Businesses

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:

  • Utilization of inward supplies
  • Details of the vendor from whom you buys goods and services
  • The nature of supply you receive
  • Customer and channel who deduct tax

Prerequisites for 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:

  • Should be a registered taxpayer under the GST with a 15 digit PAN-based GSTIN.
  • You must neither be a composition vendor nor have a Unique Identification Number (UIN). You should also not be one of those non-resident foreign tax payers.
  • Need the data on your GSTR 2A from your GST portal. To cross verify, you need all the details of every single transaction.
  • Need an OTP from a registered phone number or digital signature certification. You can also file GSTR using an Aadhar based e sign.


Read More:

GSTR-2 Form 

GST Returns













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