Difference between GSTR 2A and 2B

It’s an eternal truth that the introduction of Goods & Service Tax (GST) has a tremendous increase in compliance, which is necessary to integrate all the indirect tax regimes of India. Right now, the GST portal has a total of twenty-two types of GST Returns (GSTR), under which eight are auto-populated returns. Narrow doing this capacious topic, the present discussion is focused on two returns only, i.e., 2A and 2B, which are view-only returns. Firstly, a brief introduction of both the returns will be given, focusing on their importance in tax evaluation. Then elaborate on bullet points that differentiate between these two GSTR, which gives a detailed comparison of the same. Lastly, conclude this article by interconnecting these two GSTRs with their relevant difference.

Introduction of GSTR 2A & 2B

Intending to ease the indirect taxation regime, India introduced the GST law in 2017. Fulfilling its main purpose, in Feb. 2019, GSTR-2A has popped up in the GST portal with its automatic generate feature. Based on details submitted in GSTR-1, GSTR-2A reflects details of original as well as amended invoices, which are an evident statement of eligible Input Tax Credit (ITC).

To move ahead of the new return, i.e., GSTR-2B was introduced in Aug. 2021, which got effective in Sept. 2021, simplifies the calculation part and saves potential ITC for the Assessee (Taxpayer). The main objective of incorporating this new return is to ensure constant value throughout the period without any glitch in the predecessor return, i.e., GSTR-2A. This new return gives convenience to Assessee in claiming their lawful ITC without giving unnecessary clarification to the department.

Differentiation between GSTR-2A & 2B

The actual difference between these two sibling returns (GSTR-2A & GSTR-2B) can be traced with a simple comparison study. Referring to the initial discussion, it is quite clear that both the returns reflect the availability of ITC but the twist lies behind the determination of transitional evaluation. The same can be clearer with the following bullet points:

• Nature of Data: GSTR-2A is dynamic, as it simply reflects data about inward supplies (sale) on a real-time basis as per the details submitted via Invoice Furnishing Facility (IFF) filled in GSTR-1. Therefore, GSTR-2A changes every month as the Assessee/supplier submits the latest uploaded data. Considering this issue, GSTR-2B initiates manifesting the same data statically as generating data for a particular month; this return picks details in terms of the due dates of either GSTR-1 or IFF of the succeeding month. Thus, GSTR-2B is a fixed monthly model which remains consistent without any intervention of future operations of uploading data.


• Scope of Data: GSTR-2B is a refined form of GSTR-2A. It has confined details that don’t declare details like Tax Deduction at Source (TDS) and Tax Collection at Source (TCS). However, it reflects import transactions from outside India or the Special Economic Zone (SEZ).


• Data Bifurcation: Reflecting details of ITC, GSTR-2A lack this feature of bifurcating eligible & ineligible ITC, which has been taken care of in the new return, i.e., GSTR-2B.


• Reconciliation: After filing GSTR-1, Assessee has to submit its GSTR-3B, a monthly self declaratory consolidated summary statement whereby all transactions are reconciled with ITC claims and tax liability details. With the introduction of GSTR-3B, details of eligible ITC are auto-generated in GSTR-3B, which was not happening with GSTR-2A.

Conclusion

With differential above highlights, the readers should not ignore the fact that both are monthly auto-generated returns and interrelated as GSTR-2B is the filtered version of GSTR-2A. Undoubtedly, introducing a new return, i.e., GSTR-2B, will resolve much confusion like static ITC details and bifurcation between eligible & ineligible ITC. However, considering the history of confusion and litigation, this new return model will open new chaos as next year's department, and Assessee will take a different opinion on claiming ITC. Every new initiative resolves old issues but also creates some problems or confusion.