| Mar-21-2022

GST

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  • CA VenkataramaniANIL ZABAK
    Participant

    HOW TO RECONCILLE 2B WITH BOOKS

    CA VenkataramaniPrateek Agrawal
    Participant

    Can be done directly through tally at one click.

    CA VenkataramaniCA Venkataramani
    Compliance Expert

    The process / methodology of reconciling Form GSTR 2B with the books, is briefly stated below. Much will depend on the facts and circumstances of each case. An attempt is made in the following paragraphs to explain / indicate the methodology (which may be considered) for the purpose of reconciliation. Input tax credit as appearing in Form GSTR – 2B with the input tax credit accounted in the books of accounts should be reconciled date-wise / month-wise/ year-wise / party-wise/ invoice-wise. Following are certain relevant aspects in this regard:

    1. Nature of Form GSTR – 2B: Form GSTR – 2B for a particular tax period will be static and the input tax credit reflected therein will not vary for that particular tax period depending on filing of Form GSTR – 1 by the suppliers. In other words, Form GSTR – 2B is unlike Form GSTR – 2A which is dynamic and reflects input tax credit on a real time basis for a particular tax period which is directly related with the filing of Form GSTR – 1 by the supplier. It may be noted that this is the major distinguishing feature between Form GSTR – 2B and Form GSTR – 2A.
    Eg: Form GSTR – 2B collates the information from Form GSTR – 1 filed by the suppliers till 11th day of that particular tax period irrespective of the tax period for which such Form GSTR -1 is filed by the supplier or irrespective of the date of tax invoice reported in Form GSTR – 1.

    2. Source of information: Form GSTR – 2B reflects the tax credits by way of collating the details from Form GSTR – 1, Form GSTR – 6, information reported in ICEGATE system. It may be noted that unlike Form GSTR – 2A, Form GSTR – 2B will not collate the information pertaining to TDS and TCS as declared in Form GSTR – 7 and Form GSTR – 8, respectively.

    3. Additional details: Form GSTR – 2B depicts the tax period of Form GSTR – 1 and date of filing of Form GSTR – 1 by respective suppliers and will not reflect the information / status pertaining to filing of Form GSTR – 3B of such supplier.

    4. Basis of reflection of input tax credit: Form GSTR – 2B reflects the input tax credit with respect to Form GSTR – 1 filed by the supplier between 12th day of relevant tax period and up to 11th day subsequent tax period irrespective of the date of invoice or the tax period in which the invoice is issued.

    5. Eligibility / ineligibility: Form GSTR – 2B differentiates the input tax credit eligibility based on the date of invoice. In other words, if the invoice issued during the financial year 2020-21 is reported in Form GSTR – 1 filed after October 20th (amended to November 30th vide Finance Bill, 2021 which is yet to be effective).

Viewing 3 posts - 1 through 3 (of 3 total)