GSTR 2 Explained

July 30, 2019

GSTR 2 Explained

Under the various terms and conditions as stipulated under GSTR 2, all registered taxpayers must furnish details of inward supply. They must provide the details every month if they want to keep things legitimate at all times. You should not forget that delay in submission might result in some penalties.


According to the revised model GST law, every registered taxable person is required to furnish details of Inward Supply for a tax period. Read More on GSTR2
Furnishing the Details of Inward Supply

In our earlier article, we discussed the various headings of GSTR-1. Let us get to know more about GSTR-2.
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According to the revised model GST law, every registered taxable person is required to furnish the details of Inward Supply for a tax period. This return is required to be filed by the recipient of (goods/services) supplies within 15 days from end of the relevant tax period.  The Tax period here means end of the relevant month.
Most of the headings under this return are auto-populated from counter-party GST return.

In the article given below each heading has been explained along with the details required to be reported under GSTR-2:
GSTIN – All taxpayer will be allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). A format of the proposed GSTIN has been shown in the image below. GSTIN of the taxpayer will be auto-populated at the time of return filing.

Format of GSTIN

Name of Taxpayer – Name of taxpayer, will also be auto-populated at the time of logging into the common GST Portal.

Tax Period, Month, and Year – Each taxable person is required to select from a drop down the relevant month and year respectively for which GSTR-1 is being filed.

Inward Supplies from Registered Taxable Person – Most of the inward supplies from a registered taxable person will get auto-populated here. This information flows from the GSTR-1 filed by supplier. Further claim can be added by the registered person in this section which is not auto-populated as a reason of:

1. Non-filing of the GSTR-1 by Supplier

2. Supplier filed the GSTR-1, however, transaction got missed
In both the scenario, these details can be manually be added by the buyer. The supplier also gets a notification to accept this addition or modification in his GSTR-1A return. Moreover, if the supply is received in more than one batch, then the invoice information should be reported in the return period in which the last batch is received and recorded in books of accounts.

Amendments to the Details of Inward Supplies Received in Earlier Tax Periods – Under this head, a taxable person can amend details with respect to goods or the services received in earlier months. One can manually fill in this information. Subsequently, the supplier also gets a notification regarding this modification. The supplier needs to accept this change in his GSTR-1A return.

Goods/Capital Goods received from Overseas (Import of Goods) – Any kind of import of the input goods or the capital goods in previous month needs to be reported under this head. The imports are considered as an inter-state supply under Goods and Services Tax Law. According IGST the liability will be determined basis such declaration.

Amendments in Goods / Capital Goods Received from Overseas (Import of goods) of Earlier Tax Periods – Any amendment in tax/amount/ calculated on the imported goods can be made under this heading. Here, a registered taxable person is required to also furnish the detail of all the changes in the bill of Entry / Import Report.

Services received from a Supplier Located outside India (Import of Services) – Any import of services in the previous month has to be reported under this head. The Model GST law requires a Service Receiver to pay the GST if such services are received from a person who is a resident outside India. Such services fall under the Reverse Charge Mechanism of the collection of the GST.

Amendments in Services Received from a Supplier Located outside India (Import of Services) of Earlier Tax Period – Any amendment in tax/amount calculated on the imported services can be made under this heading. Here, a registered taxable person is required to also furnish the detail of all changes in the Invoice. Any reduction in the value of the supply will result in a refund of IGST paid earlier.

Details of Debit/Credit Notes – A taxable person is required to report all the debit and credit notes with respect to the inward supply here. Any debit/credit note issued under the reverse charge mechanism will get auto-populated here from counter-party GSTR-1 and GSTR-5.

Amendment to the Details of Credit /Debit Notes of earlier tax periods – Any amendment in debit /credit note that is pertaining to the previous months shall be reported under this heading. This will mainly include changes made under the reverse charge mechanism transactions. Any other modification will be auto-populated here.

Supplies Received from Unregistered Person – All kind of supplies other than from a normal registered taxable person will be reported under this heading. This will include supplies from a composition dealer, unregistered person, and other exempt/nil/non-GST supplies. Also, both inter-state and intra-state supplies need to be reported here.

ISD Credit Received – The Input Credit received from an Input Service Distributor who is registered under the Goods and Services Tax will get auto-populated in this heading. These will be cases where the head-office has received input services and some portion of this credit gets transferred to the branch office.

TDS Credit Received – This section will be applicable only in case the assesses engages in specified contracts with specified persons. Under such case, the receiver of goods and/or services will deduct a certain percentage of transaction value as the Tax Deduction at Source. Such deductor is further needed to furnish the detail of all the TDS collected in his GSTR-7. All this information gets auto-populated here.

TCS Credit Received – This heading is only applicable to the merchants registered with an e-commerce operator. Under the GST law, E-commerce operator is required to collect the tax at source at the time of making the payment to such merchants.

ITC Received on an Invoice on Which Partial Credit Availed Earlier – All input credit which were due as a reason of non-filing of the return from the supplier fall under this head. All the input tax credit taken earlier will also get auto-populated upon choosing the invoice number.

• Tax Liability under Reverse Charge Arising on Account of Time of Supply without Receipt of Invoice

• Amendment in Tax Liability Under Reverse Charge arising on account of Time of Supply without receipt of Invoice

Tax Already Paid – This includes the GST which is already paid under the Reverse Charge in an earlier tax period on account of the time of supply for which invoices are received in the current period. Please note that the tax liability in respect of the invoices issued in the current period shall be net of tax already paid on the occurrence of the time of supply.

ITC Reversal – All kind of input tax reversals will be reported here. A drop down is provided to select the reason for the reversal. This heading also includes the ITC reversal on account of exempt and non-business supplies.

Amendments to the ITC Reversal – Registered person under the GST law and manually amend any particulars with respect to the Input Tax Credit. These changes will be made under this heading.

Some of the other key points that must be noted are:

1 GSTR-2 must be furnished by the 15th of the month succeeding the tax period.

2 GSTR 2 is not required to be furnished by a Compounding Taxable Person and  the Input Service Distributor

3 Auto-population under GSTR2 would be done, on the basis of GSTR-1 of counter-party supplier.

You must have accurate and exact information about the Input Tax credit provisions under GSTR 2. It can help you in saving some money on the overall Goods and Services Tax that you pay to the State as well as the Central Government. It will also help in making timely payments.

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