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.
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:
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.