by Anjana Sundararajan

GST stands for Goods and Services Tax. It is a value-added tax levied on most goods and services sold for domestic consumption in many countries around the world. GST is usually collected at every stage of the production and distribution process, with the tax ultimately borne by the end consumer. The GST system aims to streamline the taxation process, reduce tax evasion, and create a more uniform tax structure. Different countries may have different GST rates and regulations. For example, in India, GST replaced multiple indirect taxes levied by the central and state governments, unifying them under a single tax structure.

GSTR 1, GSTR 2A, GSTR 2B, and GSTR 3B are all related to the Goods and Services Tax (GST) system implemented in India. Let’s look at a brief overview of each below.

GSTR-1: 

GSTR-1 is a monthly or quarterly return that should be filed by every registered dealer. It contains details of all outward supplies (sales) of goods and services. It includes information such as invoice-wise details of sales, credit and debit notes, exports, and taxable supplies to unregistered persons.

Frequency of Filing: This can be filed on a monthly or quarterly basis. The due date for filing GSTR-1 is on or before 11th of every month. Another option is to avail the QRMP Scheme, under which they can file on a quarterly basis with monthly payments. Any taxpayer whose turnover is less than 5 crores could avail the QRMP Scheme. But it is optional not mandatory. The due date of Filling of GTSR-1 under QRMP scheme is 13th of the next month.

If it filed in the above time frame, then he will avoid legal compliance as well as interest and penalty.

1. Contents of the Form: The GST R-1 form contains various sections where businesses need to provide details such as:
   • Outward Supplies (Sales): Details of all sales made during the reporting period, including taxable, exempt, and nil-rated supplies.

• Outward supply regarding Regular B2B, Deemed Export 
• Supply to SEZ including (with payment and Without payment)
• Supply to Outside India (including with payment and without payment)
• Supply to Unregistered Dealers
• Supply to Ecommerce Operators
• Credit notes for Regular B2B, SEZ, Deemed Export and credit note for Unregistered Dealer.

1. Compliance Requirement: Filing GSTR-1 is a legal requirement under the GST law. Failure to file the return within the specified due dates can attract penalties and interest charges.
2. Electronic Filing: The GSTR-1 form is filed electronically through the GSTN (Goods and Services Tax Network) portal. Businesses need to log in to the portal, enter the required details accurately, and submit the return online.

Overall, the GSTR-1 form is a critical document for businesses to fulfil their tax compliance obligations, helps to claim input tax credit, and ensure transparency in their transactions under the GST regime.

GSTR 2B:

This provides details of inward supplies such as invoices, debit notes, credit notes, etc., and allows taxpayers to verify and reconcile this information with their purchase records. It helps in identifying any discrepancies between the input tax credit claimed by the recipient and the tax paid by the supplier, ensuring better compliance and reducing the chances of input tax credit mismatches and subsequent litigation.

GSTR 2B aims to streamline the process of claiming input tax credit by providing a consolidated and easily accessible view of input tax credit available to the recipient. This assists taxpayers in accurate compliance with GST regulations and facilitates smoother audits and assessments.

1. GSTR 2B is static : meaning, that once the data is generated the first time, it won’t change after that. It provides a summary of the ITC which is available to the taxpayer based on data filed in GSTR1 by suppliers.
2. Format and Contents: GSTR 2B is available in a downloadable format from the GST portal. It includes various sections such as details of invoices, debit notes, credit notes, amendments, etc. The information is categorized based on the GSTIN (Goods and Services Tax Identification Number) of the supplier and the document type.
3. Access and Availability: GSTR 2B is typically made available to taxpayers on a monthly basis. It can be accessed and downloaded from the GST portal using the taxpayer’s credentials. The availability of GSTR 2B usually follows the filing of GSTR-1 by the supplier 14th of every month.
4. Utilization in ITC Reconciliation: Taxpayers use GSTR 2B primarily for reconciling their input tax credit (ITC) claims with the details furnished by their suppliers in their GSTR-1 returns. By comparing the data in GSTR 2B with their purchase records, taxpayers can ensure that they are correctly availing ITC and rectify any discrepancies or mismatches. Only if the data reflects in 2B, then it can be claimed in ITC.
5. Legal Validity and Importance: While GSTR 2B serves as a valuable tool for ITC reconciliation and compliance, it is essential for taxpayers to maintain their own records and documents to support their claims. GSTR 2B is not a standalone document for claiming ITC but aids in the reconciliation process. Taxpayers should ensure that their ITC claims align with the provisions of the GST law and are supported by relevant documentation.

Overall, GSTR 2B plays a crucial role in the GST compliance ecosystem by providing transparency, facilitating reconciliation, and ensuring the accurate utilization of input tax credit by registered taxpayers.

GSTR-3B:

GSTR-3B is a simplified monthly self-declaration form introduced by the Indian government for taxpayers under the Goods and Services Tax (GST) regime. It serves as a summary return where taxpayers provide summarized details of their outward supplies, input tax credit (ITC) claims, and tax payment. GSTR-3B was introduced as an interim measure to facilitate easier compliance while the GST filing system was being streamlined.

1. Frequency: GSTR-3B is filed monthly by most taxpayers, typically by the 20th of the following month. However, for taxpayers with an aggregate turnover of up to ₹5 crores in the previous financial year, a staggered due date system has been implemented, allowing them to file GSTR-3B by the 22nd or 24th of the following month, depending on their state of registration. This can also be filed quarterly.
2. Content: The form requires taxpayers to provide summarized information on outward supplies (both taxable and exempt), input tax credit availed, RCM payable, and tax payable after adjusting for ITC. It also includes fields for reporting any interest or late fees payable.
3. Filing Process: Taxpayers can file GSTR-3B directly on the GST portal by logging in with their credentials. The form is available for filing online and has optional digital signatures.
4. Payment of Taxes: Along with filing GSTR-3B, taxpayers are required to make the tax payment for the respective tax period, in case output has excess. The payment can be made online through various modes such as internet banking, credit/debit card, or NEFT/RTGS.
5. Role in Compliance: GSTR-3B serves as an interim measure until a more comprehensive return filing mechanism is implemented. It helps taxpayers fulfil their tax obligations in a simplified manner and ensures a smoother transition to the GST regime.

It’s essential for taxpayers to ensure accurate and timely filing of GSTR-3B to avoid penalties and maintain compliance with GST regulations. Additionally, they should reconcile their ITC claims with the auto-populated GSTR-2A to avoid any discrepancies.

GSTR-2A: 

GSTR-2A is an auto-generated form that is generated by the GSTN (Goods and Services Tax Network) system based on the details furnished by the supplier in their GSTR-1 return. It reflects the purchases made by the recipient (buyer) during a particular tax period. Taxpayers can view and verify the details of their purchases in GSTR-2A before filing their GSTR-3B return.

GSTR-2A helps the recipient reconcile their purchase-related data with the supplier’s sales data as per the invoices uploaded by the supplier. 

 This will help to get the 3B filing status of your supplier so that ITC reversal can be avoided. 

This will also help us to find the GSTIN inactive status 

But it should be noted that ITC is taken as per 2B not 2A.

If there are any discrepancies or missing invoices, the recipient needs to communicate with the supplier to rectify them. 

1. GSTR 2A is dynamic – The data will constantly keep getting updated as and when the supplier files returns. It shows the inward supplies uploaded by the suppliers.
2. Generation Process: GSTR-2A is generated by the GSTN system based on the information provided by the supplier in their GSTR-1 return. GSTR-1 contains details of all outward supplies made by the supplier.
3. Contents: GSTR-2A contains various sections, including details of invoices, debit notes, credit notes, TCS, TDS, and amendments related to outward supplies made by the supplier to the recipient. It also includes information about the tax amount charged and tax credit available to the recipient. 
4. Importance of Reconciliation: Reconciliation of GSTR-2A with the recipient’s purchase records is crucial for ensuring that the recipient claims accurate input tax credit (ITC). Any discrepancies or missing invoices in GSTR-2A need to be addressed to avoid potential issues with compliance and tax filings.
5. Legal Validity: While GSTR-2A serves as a reference document for recipients, it is not a legal document for claiming input tax credit. Recipients need to file their GSTR-3 return based on the reconciled data from GSTR-2A and other relevant documents.

Penalty:

Our Platform 

GST 1 Tool:

At CWN, our platform has a GST 1 tool, which helps to find the mismatch between filed returns and current booked data, which in turn helps to find out the differences between them. 

The benefit of this would be that it helps to correct the data and returns from time to time so legal issues or notice from the GST Department can be avoided. This also saves significant time and effort while doing GSTR 9 filing annually. 

GST 2B Tool:

Like the above, our platform also has a 2B tool which helps to find the matches and mismatches between books and 2B data and ensures that the correct input is availed, so that legal issues can be avoided. We have an intelligent matching functionality which helps to match bills and avoid duplication or excess payment to the government.

GST 3B Tool:

The 3B tool helps to generate the 3B file to compare with auto generated data from GST Portal to ensure easy filing.