1. What is Form GSTR-2?
GSTR-2 is the details of inward supplies of goods or services to be furnished by registered taxpayer on a monthly basis. The GSTR-2 would be prepared by registered taxpayer by acting upon on auto-populated details from GSTR-1,5,6, 7,8 filed by the corresponding supplier/ Non-Resident taxable persons/ ISD/ Tax Deductor/ Tax Collector and by adding missing /other details as applicable. The registered taxpayer can avail Input Tax Credit (ITC) for eligible inward supplies.
2. Who is required to file Form GSTR-2
Every registered person, other than an Input Service Distributor or a Non-Resident taxable person or a person paying tax under the provisions of section 10 (Composition taxable person) or section 51 (TDS) or section 52 (TCS), is required to file Form GSTR-2 (Statement of Inward Supplies), on a monthly basis, prepared on the basis of auto-populated details from the Form GSTR-1 of the suppliers after accepting, modifying, rejecting, or keep pending such data.
Receiver taxpayers can also add inward supplies and credit or debit notes received for supplies that are not declared by the supplier taxpayer in Form GSTR-1.
Recipient is also required to declare his claim of ITC on inward supplies in Form GSTR-2.
Form GSTR-2 needs to be filed even if there is no business activity (Nil Return) during a given tax period.
3. Is there any taxpayer who is exempt from filing Form GSTR-2?
Yes, the following taxpayers are exempt from filing Form GSTR-2:
- Input Service Distributors
- Taxpayers under the Composition Scheme
- Non-resident Taxable Persons
- Taxpayers paying tax under section 51 (TDS) or 52 (TCS)
4. By when do I need to file Form GSTR-2 for a given tax period? OR What is the due date for filing Form GSTR-2?
The due date for filing Form GSTR-2 is the 15th of the month succeeding the tax period.
Example: The goods and/or services received during the month of January, should be filed between 11th and 15th of February. In other words, for the supplies received in the month M, Form GSTR-2 shall be filed on or before the 15th day in month M+1. However, action can be taken on auto-drafted details only after 11th of month succeeding the tax period.
5. Can the date of filing of Form GSTR-2 be extended?
Yes, date of filing of Form GSTR-2 can be extended by the Board/Commissioner by notification.
6. Is there any late fee applicable on filing of Form GSTR-2 after due date? If yes, what are the charges?
Yes, a receiver tax payer is charged late fee for filing Form GSTR-2 after the due date.
Late fee for filing Form GSTR-2 after the due date is auto calculated. Payment of late fee is not required before filing of Form GSTR-2. The fee must be paid before filing of Form GSTR-3, without which the return is considered invalid.
Late fees payable is Rs 100/- for every day (as per CGST Act) during which such failure continues subject to maximum of Rs 5000/-, (fees as per SGST Act will be charged separately as per respective SGST Act).
7. What is the definition of inward supplies under GST?
The inward supplies include all inward supplies of goods and/ or services, including inward supplies of services and goods on which the tax is payable on reverse charge basis.
8. Under what circumstances can the details of inward supplies of month M in the Form GSTR-2 can be filed before the end of month M (before the end of the tax period)?
Normal taxpayers cannot file Form GSTR-2 before the due date of the filing of Form GSTR-1 of the current tax period.
However, following are the exception scenario for filing before due date:
a. Casual taxable person
b. Surrender of Registration by Normal Taxpayer Surrender of Registration by Normal Taxpayer
However, taxpayer who has applied for cancellation/ surrender of registration would be allowed to file GSTR-2 only after confirmation of cancellation application.
9. What is the time limit up to which a taxpayer can claim ITC?
ITC can be claimed up to the due date of filing of the return of the tax period ending September of the subsequent financial year in which the original invoice/ debit note was issued or the annual return of the subsequent financial year is filed, whichever is earlier. If the invoice date is after this limitation period, credit is not allowable.
10. What are the pre-conditions for filing GSTR-2?
Pre-conditions for filing of GSTR-2 are:
- The receiver taxpayer should be a Registered Normal Dealer and should have an active GSTIN.
- Receiver taxpayer should have valid login credentials (i.e., User ID and password).
- Receiver taxpayer should have valid and non-expired/ unrevoked Digital Signature Certificate (DSC which is mandatory for companies, LLPs and FLLPs).
- Receiver taxpayer should have a valid Aadhaar number with mobile number, in case they want to use the E-Sign option.
- A receiver taxpayer should have with him an active mobile number which is indicated in his registration details furnished to GST Portal at the time of enrolment/ registration or amendment to registration details for signing through EVC.
- A receiver taxpayer will have an option to file Form GSTR-2 for cancelled GSTINs for the period in which it was active.
- Due date for filing of Form GSTR-1 of the same tax period should have lapsed.
11. What happens after Form GSTR-2 is filed?
After Form GSTR-2 is filed:
- ARN is generated on successful submission of the Form GSTR-2 Return. In case, the return is filed through an offline utility, a Temporary ID is generated when the taxpayer uploads the .JSON file. On successful submission of the Form, an ARN is generated.
- An SMS and an email are sent to the taxpayer on his registered mobile and email on successful submission of Form GSTR-2.
- Once the Form is submitted after affixing DSC or E-sign or EVC as the case may be, the Form is passed on to:
i. The CBEC (Central Board of Excise and Customs – the central tax authority)
ii. Tax authority of jurisdictional State or UT of
- In case of modifications or additions in Form GSTR-2, such details are auto-populated in Form GSTR-1/ 1A/ 5 of counterparty supplier taxpayers.
- Electronic Credit Ledger is updated.
12. Where can I access my Form GSTR-2 for a given tax period?
In the post-login mode, you can access Form GSTR-2 return by navigating to the Returns Dashboard and selecting the given financial year and return filing period.
Path: Services > Returns > Returns Dashboard
13. What are the steps involved in filing Form GSTR-2?
- Receiver taxpayer logs into the GST portal using their login ID and password.
- Navigate to Services > Returns > Returns Dashboard.
- Select the financial year and tax period for which GSTR-2 needs to be filed and click SEARCH.
- All returns pertaining to the given tax period will be displayed as tiles.
- Select the GSTR-2 tile and click on PREPARE ONLINE or PREPARE OFFLINE.
- There are two tabs on the top indicating “Uploaded by Supplier” and “Uploaded by Recipients.
- Receiver taxpayer will be able to see the supplier-wise summary of all invoices received.
- Clicking on the GSTIN of a supplier will display the invoice wise list of the invoices uploaded by that supplier or uploaded by the receiver, depending on which tab on the top green band is clicked. Against each invoice of that supplier, receiver taxpayer shall take one of four possible actions – Accept, Modify, Reject, and Keep Pending.
- The taxpayer can also Add the missing invoices by clicking on the “Uploaded by Recipients” link on the top and subsequently clicking on the ADD MISSING INVOICE tab.
- After taking action and entering/ uploading all the invoices and details in the various sections of the GSTR-2, taxpayer will click SUBMIT to validate the data. On SUBMIT, if the data furnished by the taxpayer is valid the declaration of the tax payer gets frozen.
- Once the data is validated, taxpayer can click on FILE GSTR-2 using DSC or E-Sign or EVC (DSC is mandatory for companies, LLPs, and FLLPs).
- A confirmation message will pop-up to confirm or cancel the filing with YES and NO options respectively. Upon clicking YES, GSTR-2 will be filed and Acknowledgement Reference Number (ARN) will be generated for the same.
For a detailed description along with screenshots, please refer to the User Manual.
14. How can I file a Nil Return, if I have no Inward/ supplies transaction in the month?
In case there are no inward supplies details to be furnished for the month simply take action on auto-populated details if any and submit GSTR-2
15. Why do I need to generate GSTR-2 summary?
You need to generate GSTR-2 summary to update the summary on the tiles and to view the number of auto-drafted invoices/ credit note / debit notes etc. on the tile.
16. Why do I need to preview the GSTR-2 before submitting GSTR-2?
Preview button will download the draft Summary page of your GSTR-2 for your review. It is recommended that you download this Summary page and review the summary of entries made in different sections with patience before submitting the GSTR-2. The PDF file generated would bear watermark of draft as the details are yet to be submitted.
17. Why do I need to preview the GSTR-2 after submitting GSTR-2?
Preview button will download the Summary page of your GSTR-2 in PDF format. The PDF file generated would bear watermark of final GSTR-2. You can save these for quick future reference.
18. After I have taken action on the invoices (Accept. Reject, Modify/ Mark as pending), what is the next step?
After you have taken action on the invoices (Accept. Reject, Modify/ Mark as pending), you need to:
- Add missing invoices/other details
- Take action on other auto-drafted details
- Preview GSTR-2
- Acknowledge and Submit GSTR-2 to freeze data
- File GSTR-2 with DSC/ EVC
19. What are the modes of signing GSTR-2?
You can file GSTR-2 using DSC, E-Sign or EVC.
Digital Signature Certificate (DSC)
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally. In India, DSC are issued by authorized Certifying Authorities.
The GST Portal accepts only PAN based Class II and III DSC
To obtain a DSC, please contact any one of the authorised DSC-issuing Certifying Authorities: http://www.cca.gov.in/cca/?q=licensed_ca.html
Electronic Signature (E-Sign)
Electronic Signature (E-Sign) is an online electronic signature service in India to facilitate an Aadhar holder to digitally sign a document.
A One Time Password (OTP) will be sent to mobile phone number that is registered with Aadhar at the time of digitally signing documents at the GST Portal.
Electronic Verification Code (EVC)
The Electronic Verification Code (EVC) authenticates the identity of the user at the GST Portal by generating a OTP. The OTP will be sent to the mobile phone number of the registered mobile phone of Authorized Signatory filled in part A of the Registration Application.
20. Can I preview the Form GSTR-2 before submitting?
Yes, you can preview the Form GSTR-2 before submitting on the GST Portal.
21. In case total purchases from unregistered suppliers exceed the prescribed monetary limit for any day, what needs to be done?
In case total purchases from unregistered suppliers exceed the prescribed monetary limit for any day, then the entire purchase for the affected day may be reported through a consolidated monthly invoice.