Introduction
Since the introduction of GST (Goods and Service Tax) taxpayers, especially entrepreneurs dealing with goods and services or even falling under the GST slab, are finding things easy. GST has eliminated other taxes by combining into one. There are different components of GST, including the GSTR-2A, allow taxpayers to verify the complete tax credit claim. It is important to adhere to laws stated under GST. This automated document shows any purchases or inbound supplies made by a registered taxpayer. However, it is important to know the GSTR-2A filing procedure to avoid any kind of penalties.
For a business to attain tax benefits, it needs to handle multiple GST forms using the right methods. Among these is the GSTR 2A Form. The Goods and Services Tax Return will allow taxpayers to keep track of all costs incurred and guarantee that the claim is accurate. Understanding GSTR-2A and clearly explaining the GSTR-2A submission process is essential. This guide will take you through the steps to file GSTR-2A.
What is GSTR-2A?
When an entrepreneur does any business with the seller, the GSTR 2A is generated automatically at the official site of GST. Any data updated by the seller in GSTR 1 is recorded automatically in the buyer’s GSTR 2A. Before filing the return through the GST Portal, it is necessary to do certain amendments if needed.
The GSTR 2A carries details including the invoice number, the date, the GSTIN of taxpayers and suppliers, etc.
One thing to remember is that this GSTR-2A is a completely read-only, and is informed to the buyer once the seller makes any changes. The appropriate business should review this GST form 2A and make any necessary corrections before filing its returns as GSTR 2 on the GST portal. Filling GSTR-2A is now easy and done online. Like the process of GST filing, the GSTR-2A e-filing steps are quite similar.
Also Read: Understanding GSTR-2A and its significance
How is GSTR 2A is Generated?
GSTE 2A is automatically generated having information of sellers or counterparties. It is generated in below forms-
- GSTR 1
- GSTR 5
- GSTR 6
- GSTR 7
- GSTR 8
GSTR-2A is conducted in below cases –
- When the seller uploads the transaction data into the GSTR 1 Form.
- When the seller transaction details are uploaded into the GSTR 5 Form by a non-resident vendor.
- When the Input Service Distributor submits GSTR 6 Form.
- When a counterparty files Forms GSTR 7 and 8, mentioning TDS and TCS information.
GSTR-2A needs to be verified and then you can go ahead with the GSTR-2A submission process. On the other hand, the seller may choose to postpone filing GSTR 1. In this scenario, when manually filing their GST returns, the concerned business will have to fill in all the required information.
Additionally, the information a seller submits in GSTR 1 will appear in that business’s GSTR 2A next month to guarantee uniformity in information recording. Additionally, the information a seller submits in GSTR 1 will appear in that business’s GSTR 2A next month to guarantee uniformity in information recording.
What contents you will find in GSTR-2A?
There are different portions covered in GSTR-2A. Some of these are-
- Vendor’s Goods and Service Tax Identification Number (GSTIN)
- Name and Address of the vendor
- Tax period
- Invoice number and date
- Invoice value
- Taxable Value
- Applicable Tax Rates
- Tax Amount paid.
What are GSTR-2A e-filling steps?
When it comes to steps to file GSTR-2A, there are none as it is a read-only document carrying list of invoices from various sellers. The buyer has complete access to make changes if needed as per the requirement. If there is any inconsistency filed under GSTR 1, then changes must be made instantly.
Moreover, there is no due date in GSTR 2A because it is generated automatically. However, if there are any changes needed in the form, it should be made before 15th of every month.
How can you View GSTR-2A?
To view the return form online. Here are the steps-
- Step 1: Visit the official GST portal.
- Step 2: Log in using the necessary credentials.
- Step 3: You will see a dashboard, click on “Services”.
- Step 4: Click on “Returns” and then “Returns Dashboard”.
- Step 5: You will see the “File Returns” page, where one needs to fill the “Financial Year” and “Return Filing Period” and then click on Search.
- Step 6: Now click on the “View” option under GSTR 2A.
- Step 7: It will then show the GSTR 2A – Auto-drafted details page.
What if the seller fails to upload the invoice or delays GSTR-1?
In these situations, the input tax credit for delayed invoices will not appear in GSTR-2A for the relevant tax period. Moreover, the seller will need to pay penalties for late GSTR-2A filling. Buyers may need to inform their vendors or default suppliers to upload past-due bills on time. As of August 2020, all buyers need to utilise GSTR-2B instead of GSTR-2A to find the input tax credit that is available for a certain tax period.
On the other hand, the buyer may have provisionally claimed an input tax credit under CGST Rule 36(4) in his GSTR-3B until December 31, 2021, up to 5% of the eligible tax credit that appears in GSTR-2B for the invoices that were excluded from the GSTR-3B.
A detailed comparison between GSTR 2A vs GSTR 2B
Entrepreneurs dealing with service and product need to understand the difference between GSTR-2A and GSTR-2B.
| Criteria | GSTR 2A | GSTR 2B |
| Objective | Every recipient of supplies receives this automatically generated statement, which provides information on input tax credits based on the suppliers’ details, including any updated information. | Based on the suppliers’ data for each tax period, it is a continuous auto-drafted statement that provides input tax credit information to all recipients of supply. |
| Statement Characteristic | It carries dynamic document since it is updated daily based on information provided by a supplier. | For a duration of one month, the document remains unchanged and cannot be altered based on subsequent provider activities. |
| Cut-off date to view the GSTR statement | Not Applicable | The statement is generated on 14th of every month. |
| Maximum ITC entries one can view on the GST portal | 500 rows | 1,000 rows |
| ITC Claim Advisory | Carries no information about what registered buyer needs to do. | Under each provision, the taxpayer receives an advice indicating whether an ITC is allowed, ineligible, or reversed, allowing him to proceed with his GSTR-3B appropriately. |
| Nature of Statement | Dynamic as daily developments get reflected. The data is derived from the provider’s supplied documentation. | It remains static |
| Advisory on ITC Claim | It doesn’t include information about what a registered buyer needs to do. | It includes an advisory for the taxpayer to take specific actions in accordance with his GSTR-3B for each part regarding the eligibility, ineligibility, or reversal of the Input Tax Credit. |
Also Read: Key Differences Between GSTR-2A And GSTR-2B
Conclusion
GSTR-2A provides details about purchases made during the period for which it is being filed. This is an automatically generated Return made for each GST-registered firm. When suppliers issue credit or debit notes, or when they file GSTR-1, the data they supply is used to populate GSTR-2A. The information contained in GSTR-2A is primarily utilized for informative purposes.
If you are finding it hard to file GST, you can check out the online service. You get complete online service for GST filing. Moreover, you will also get information about GSTR-2A filling guide from professionals.
Also Read: Best 7 Effective GSTR-2A Management Practices
Also Listen: GSTR-2A and Form 26Q TDS Reconciliation
FAQs
1) Is GSTR 2A available for sale or purchase?
Ans: The GSTR-2A is a purchase-related tax return and is automatically generated for every business.
2) Who is eligible to file GSTR-2A?
Ans: When the counterparty or seller of a business submits the GSTR 1 and 5 Forms, the GSTR 2A is immediately generated. It records every purchase a business makes in each month, including all invoice information. But it’s a read-only document that merely tells a company about the invoice data of its vendors.
3) What is the reason to use GSTR-2A?
Ans: GSTR 2A is a return filed for the purpose of giving information regarding the transaction to the recipient.
4) Who updates the information in GSTR 2A?
Ans: The information in GSTR 2A is automatically updated once the seller updates in the GSTR 1
5) How will the taxpayer come to know if the GSTR 2A is updated?
Ans: The taxpayer will get notification once the GSTR 2A is updated automatically.
