GSTR 2A: Definition, Due Date, Steps to Return Filing, and Format

The Goods and Services Tax (GST) has streamlined the indirect tax system in India by introducing a single tax for all goods and services. GSTR 2A is a crucial component of the GST system, which allows taxpayers to verify their tax credit claims.

Essential details for businesses to reconcile their tax credit claims are found in GSTR 2A. Timely reconciliation of GSTR 2A is crucial to prevent inaccurate tax credit claims and potential penalties. A thorough comprehension of GSTR 2A enables businesses to make precise tax credit claims, evade penalties, and stay compliant with the GST system. Utilising tools like the GST Calculator can further streamline tax calculations and ensure accuracy in GST filings, empowering businesses to navigate the tax landscape with confidence.

In this article, we will discuss GSTR 2A in detail, including its purpose, contents, and the importance of timely reconciliation.

What is GSTR 2A?

GSTR 2A is an auto-generated document that contains details of all the purchases made by a business from its vendors. It is automatically generated once a vendor files their GSTR 1 return, which contains details of all the sales made during the tax period.

GSTR 2A provides a summarised view of all the input tax credit (ITC) available to the buyer for a specific tax period. Businesses use GSTR 2A to verify the accuracy of their tax credit claims by reconciling it with their GSTR 3B return.

What are the contents of GSTR 2A?

GSTR 2A contains the following details:

1. GSTIN (Goods and Services Tax Identification Number) of the vendor
2. The vendors' name and address
3. Tax period
4. Invoice number and date
5. Invoice value
6. Taxable value
7. Applicable tax rates (CGST, SGST, or IGST)
8. Amount of tax paid

What is the importance of timely reconciliation of GSTR 2A?

Reconciling GSTR 2A with GSTR 3B allows businesses to verify the accuracy of their tax credit claims. Failing to reconcile GSTR 2A on time can lead to incorrect tax credit claims and penalties.

It is crucial to reconcile GSTR 2A regularly to ensure that all transactions with vendors have been appropriately recorded and to claim the correct ITC. Timely reconciliation of GSTR 2A can help avoid compliance issues, reduce the risk of penalties, and ensure optimal tax efficiency.

Consequences of a seller delaying GSTR-1 filing or failing to upload invoices

If the seller delays filing GSTR-1 or fails to upload invoices, the buyer will not be able to claim input tax credit for the corresponding invoices until they are uploaded. This can cause a delay in the buyer's compliance and cash flow, as they cannot offset the input tax credit against their output tax liability. In some cases, the buyer may need to initiate follow-up with the seller to encourage timely filing of GSTR-1 and invoice uploads.

Difference between GSTR-2A and GSTR-2B

Parameters	GSTR-2A	GSTR-2B
Availability	Available for viewing/download on the 11th of the following month	Available on the 13th day of the following month for quarterly taxpayers
Invoice Level Details	Provides detailed invoice-level information for each transaction	Provides summarized data, may not show detailed invoice-level information
Data Sources	Based solely on suppliers' GSTR-1 filings	Utilizes multiple data sources including GSTR-1, GSTR-5, GSTR-6, and e-invoices
Amendment Facility	Does not allow for amendments or modifications	Allows for amendments, adjustments, and additions to the auto-drafted data
Viewing Options	Can be viewed directly on the GST portal or through GST Suvidha Providers (GSPs)	Viewable through the GST portal or offline utility provided by GSTN
Reconciliation	Primarily used for reconciliation purposes to ensure that ITC claimed matches with suppliers' filings	Helps in reconciling auto-drafted ITC with purchase data and making necessary adjustments

 

Difference between GSTR-2A and GSTR-3B

GSTR-3B: This is a monthly summary return that taxpayers must file by the 20th of the following month (or by the 22nd or 24th of the month after a quarter). Taxpayers can claim the Input Tax Credit (ITC) based on the details provided in Table 4 of Form GSTR-3B:

Eligible ITC Details

• Integrated tax
• Central tax
• State/UT tax
• Cess

A) ITC available (whether fully or partially)
B) ITC reversed
C) Net ITC available (A - B)
D) Other Details

GSTR-2A: This is an auto-populated form that appears in the recipient’s login, showing all outward supplies (Form GSTR-1) reported by their suppliers. More recently, GSTR-2B has become the standard auto-drafted return, similar to GSTR-2A, used for comparison purposes.

Difference between 2A and 8A

The distinction between GSTR 2A and Form GSTR 9, specifically table 8A, lies in their auto-population sources and purposes within India's Goods and Services Tax (GST) framework. GSTR 2A retrieves figures automatically from the supplier taxpayer's saved, submitted, or filed Form GSTR 1. It serves as a dynamic statement reflecting input tax credit eligibility based on transactions reported by suppliers. In contrast, Form GSTR 9's table 8A auto-populates data solely from the supplier taxpayer's filed Form GSTR 1, providing a consolidated view for annual GST return filing. This differentiation ensures accurate reconciliation of tax credits and compliance with GST regulations.

Reconciling GSTR-3B with GSTR-2A or GSTR-2B

When the supplier files GSTR-1 in a given month to declare their sales, the corresponding details are automatically captured in GSTR-2A and GSTR-2B of the recipient. GSTR-3B is a summary return, so the ITC amount shown in Table 4(a) must match the tax details in GSTR-2A or GSTR-2B. It is crucial to reconcile GSTR-3B with GSTR-2A or GSTR-2B for the following reasons:

• GST authorities have sent notices to many taxpayers asking them to reconcile the ITC claimed in their self-declared GSTR-3B with the auto-generated GSTR-2A or GSTR-2B. These notices are issued in GST ASMT-10, and taxpayers must respond to these notices or pay the difference in amounts.
• Action has also been taken against tax evaders who claim ITC based on fake invoices
• Reconciliation ensures that the credit is claimed only for the tax actually paid to the supplier
• It helps to ensure that no invoices have been missed or recorded more than once
• If the supplier has not declared their sales in GSTR-1, communication can be sent to the supplier to correct the discrepancies
• Any errors made while reporting details in GSTR-1 by suppliers or in GSTR-3B by recipients can be fixed

Causes for the non-reconciliation of GSTR-2A or GSTR-2B with GSTR-3B

The details in GSTR-2A and GSTR-3B may not match for the following reasons:

1. Credit of IGST claimed on the import of goods
2. Credit of IGST on the import of services
3. Credit of GST paid under the reverse charge mechanism
4. Transitional credit claimed in TRAN-I and TRAN-II
5. ITC for goods and services received in FY 2020-21 but claimed in FY 2021-22

In these cases, the figures may not match because the supplier has not filed the corresponding GSTR-1 or the ITC is being claimed at a later date.

Discrepancies in GSTR-2A or GSTR-2B and GSTR-3B: After considering the above situations, if any discrepancies are found between Form GSTR-1 and GSTR-3B, which result in excess ITC being claimed by the recipient, the taxpayer must pay the difference along with interest. Therefore, it is essential to reconcile these forms regularly to ensure that only valid input tax credit is claimed.

Reconciliation at the time of filing the annual return: When filing the Annual Return in Form GSTR-9, reconciliation of ITC as per GSTR-3B and GSTR-2A is also required to be done in Table 6 and Table 8.

How is GSTR 2A generated?

GSTR-2A is automatically generated by the Goods and Services Tax Network (GSTN) based on the information filed by suppliers in their GSTR-1 returns. This return provides recipients with a detailed overview of their inward supplies, allowing them to reconcile their purchase data and claim Input Tax Credit (ITC) accurately. Here's a breakdown of how GSTR-2A is created:

• Supplier filings: Suppliers upload their sales data, including details of outward supplies made to the recipient, in their GSTR-1 forms.
• Automated retrieval: The GSTN system retrieves this information from the GSTR-1 filings of suppliers and compiles it into the recipient's GSTR-2A.
• Monthly availability: Recipients can access their GSTR-2A for a specific tax period on the 11th day of the following month.
• Invoice-level details: GSTR-2A provides comprehensive invoice-wise information, including supplier GSTIN, invoice number, invoice date, taxable value, and GST charged.

GSTR-2A serves as a critical tool for recipients to verify the accuracy of their ITC claims by comparing them with the data reported by their suppliers.

How to file GSTR-2A?

Filing GSTR-2A involves a verification process rather than direct filing, as it's an auto-generated return by the GSTN based on supplier filings. To effectively utilize GSTR-2A, recipients need to reconcile their purchase data with the details provided in the return. This involves reviewing each invoice and ensuring that all eligible input tax credits (ITC) are accurately reflected. Once the reconciliation is complete, recipients can proceed to file their GSTR-3B return, where they claim the ITC based on the reconciled data from GSTR-2A. It's essential to regularly review and reconcile GSTR-2A to maintain compliance and maximize ITC claims.

How to view GSTR-2A?

 

• Log in to the official GST portal using your credentials. And if you want to know how to login, check our page on GST login.
• Navigate to the 'Services' tab and click on 'Returns Dashboard.'
• Select the applicable financial year and tax period for which you want to view GSTR-2A.
• Click on the 'View' button next to GSTR-2A to access the return.
• Review the invoice-wise details provided in the return, including supplier GSTIN, invoice number, invoice date, taxable value, and GST charged.
• Download the GSTR-2A if needed for further reference or reconciliation.
• Ensure to regularly view and reconcile GSTR-2A to accurately claim Input Tax Credit (ITC) while filing your returns.

 

What are the details featured in GSTR 2A?

GSTR-2A provides recipients with a comprehensive overview of their inward supplies as reported by their suppliers. Here are the key details featured in GSTR-2A:

Details	Description
Supplier GSTIN	GST Identification Number (GSTIN) of the supplier
Invoice Number	Unique identification number assigned to each invoice by the supplier
Invoice Date	Date when the invoice was issued by the supplier
Taxable Value	Total value of the taxable supplies
GST Charged	Amount of Goods and Services Tax (GST) charged on the invoice

 

• Supplier GSTIN: Identifiesthe GST registration number of the supplier.
• Invoice Number: A unique identifier assigned to each invoice by the supplier.
• Invoice Date: Date of issuance of the invoice by the supplier.
• Taxable Value: Total value of taxable supplies as per the invoice.
• GST Charged: Amount of GST charged on the invoice.

These details help recipients verify the accuracy of their input tax credit claims and reconcile their purchase data effectively.

GSTR-2A format

GSTR-2A is a crucial document in India's Goods and Services Tax (GST) regime, serving as an auto-generated purchase return that provides a comprehensive summary of inward supplies. It captures details of all transactions uploaded by suppliers in their GSTR-1 forms, ensuring transparency and facilitating input tax credit reconciliation for taxpayers. The GSTR-2A format includes information such as the GSTIN of the supplier, invoice number, invoice date, taxable value, and GST amount. Taxpayers use this document to verify the accuracy of their input tax credit claims and reconcile them with their purchase records, ensuring compliance with GST regulations.

Understanding the contents of GSTR 2A and the importance of timely reconciliation can help businesses avoid penalties and maintain optimal tax efficiency. Businesses must reconcile their GSTR 2A on time and, where applicable, utilise GSTR 2B to claim accurate ITC for a specific tax period. Furthermore, integrating automated solutions like an e-Way Bill can streamline logistics operations, ensuring seamless compliance with GST regulations and enhancing overall operational efficiency.

How to prepare for the GSTR 2A reconciliation?

Preparing for GSTR 2A reconciliation is crucial for businesses to ensure accurate tax credit claims under India's Goods and Services Tax (GST) regime. This process involves comparing the auto-populated data in GSTR-2A with your own purchase register to reconcile discrepancies and maintain compliance. Here’s how you can effectively prepare for GSTR 2A reconciliation:

• Download GSTR-2A data from GST portal to Excel ('B2B from GSTN' sheet).
• Input the purchase register details into the same Excel sheet.
• Use reconciliation tool: right-click and select “Reconcile Now”.
• Compare GSTR-2A data with purchase register entries.
• Review reconciliation results for discrepancies.
• Investigate and resolve mismatches promptly.
• Maintain detailed records of reconciliation process.

Regularly perform GSTR 2A reconciliation for compliance and accurate tax credit claims under GST.