GSTR-2 is a monthly return that businesses registered under the Goods and Services Tax (GST) in India must file. It contains details of all inward supplies or purchases made during the month. In other words, it is a record of all the goods or services received by a business from its suppliers during a particular month. In this column, we will learn about the concept of GSTR-2 and how to modify GSTR-2 Return under the GST Tax regime.
What Is GSTR-2 Return And What Are The Important Elements To Be Mentioned In The GSTR-2 Form?
GSTR-2 is a return that needs to be filed by registered taxpayers to provide details of their inward supplies or purchases during a particular tax period.
Some of the key details that need to be furnished in GSTR-2 includes:
- Supplier’s name and GST Identification Number (GSTIN),
- Invoice number, invoice date,
- Tax paid on purchases, and
- Input tax credit (ITC) claimed on purchases.
When Is The GSTR-2 Return Used?
This return is used by the tax authorities to verify the accuracy of the information provided by the supplier in their GSTR-1 return, which is a record of all outward supplies made by the supplier during the same month.
What Is The Importance Of Filing GSTR-2 Return?
It is important for businesses to file their GSTR 2 return on time to avoid penalties and interest charges. The due date for filing GSTR-2 is typically the 15th of the month following the month for which the return is being filed. However, it is important to note that GSTR-2 has been suspended under GST and has been replaced by a new form called FORM GST ANX-2.
When Is The Due Date For Filing GSTR-2 Return?
The due date for filing GSTR-2 is the 15th of the month following the tax period for which the return is to be filed. For example, the due date for filing GSTR-2 for the month of March 2023 would be April 15, 2023.
What Is The Consequences Of Not Filing GSTR-2 Return?
The consequences of not filing GSTR-2 return on time may include:
- Late Fees: A taxpayer who fails to file GSTR 2 return on time is liable to pay a late fee of Rs. 200 per day of delay, subject to a maximum of Rs. 5,000. The late fees are applicable for each return that is not filed on time.
- Input Tax Credit (ITC) Blockage: Non-filing of GSTR-2 may lead to ITC blockage as the recipient cannot claim ITC on the inward supplies that are not reflected in their GSTR-2 return.
- Notice and Penalty: Non-filing or late filing of GSTR-2 may lead to a notice from the tax authorities and a penalty of up to Rs. 10,000 or 10% of the tax amount due, whichever is higher.
Process for the Modification of GSTR-2 Return in the GST Portal
To modify GSTR-2 return, you can follow the below steps:
- Login to the GST portal using your credentials.
- Navigate to the ‘Return Dashboard’ section.
- Click on the ‘Prepare Online’ button under the ‘Monthly Return (GSTR-2)’ tab.
- In the ‘GSTR-2 – Details of Inward Supplies Received’ page, you can modify the details of your purchases from registered suppliers.
- The following points that can be modified in the GSTR 2 return form:
- GSTIN of the supplier
- Invoice number and date
- Taxable value and tax amount (CGST, SGST/UTGST, IGST)
- Place of supply
- Tax rate and tax amount for reverse charge supplies
- Once you have made the necessary modifications, click on the ‘Save’ button to save the changes.
- After making all the necessary modifications, you can preview the GSTR-2 return by clicking on the ‘Preview’ button.
- If the preview is correct, you can submit the return by clicking on the ‘Submit’ button.
- After submitting the return, you need to sign the return using your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
- Once the return is signed, the system will generate an acknowledgement receipt, which you should download and keep for future reference.
It is important to ensure that the details entered in GSTR-2 are accurate, as any errors or omissions can result in penalties or interest.