A Complete Guide to GSTR-2A

Instead, its purpose is to serve as a notification mechanism, informing businesses about the invoice details of their sellers. This notification is crucial for businesses to reconcile their own records with those of their suppliers, ensuring accuracy and compliance with GST regulations.

Before businesses file their returns on the GST portal, they are advised to diligently verify the information presented in the GSTR-2A form. This verification process is essential to identify and rectify any discrepancies or errors in the document.

Correcting these discrepancies is crucial to ensure that the GST returns filed by the business, known as GSTR-2, accurately reflect their actual transactions and financial obligations.

How is GSTR-2A Generated?

GSTR-2A is generated on the GST portal through an automated process based on information provided by a company's vendors or counterparties in specific GST return forms. The forms from which GSTR-2A is populated include:

1. GSTR-1: GSTR-2A is generated when a registered resident seller uploads transaction details in the GSTR-1 form. This form captures details of outward supplies made by the seller.
2. GSTR-5: For non-resident sellers, GSTR-2A is generated when they upload transaction details in the GSTR-5 form. This form is used by non-resident foreign taxpayers.
3. GSTR-6: When the Input Service Distributor (ISD) submits the GSTR-6 form, GSTR-2A is automatically generated. The ISD form is used to distribute input tax credit (ITC) among various branches or units of a business.

1. GSTR-7 and GSTR-8: GSTR-2A includes TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) details when a counterparty files the GSTR-7 and GSTR-8 forms, respectively. These forms are used to report tax deductions and collections by taxpayers who are required to deduct or collect tax at source.

Verification of GSTR-2A is a crucial step in the GST compliance process, as it helps ensure that the information presented in GSTR-2A aligns with a company's own records and transactions. This verification is necessary before filing the GSTR-2 form, which is a taxpayer's own GST return.

In situations where a seller delay filing their GSTR-1, businesses may need to manually input the necessary transaction details when filing their GST returns. To maintain consistency in recording information, any details submitted by the seller in GSTR-1 for a particular month will be reflected in the following month's GSTR-2A of the buyer.

How to File GSTR-2A?

Businesses do not need to file GSTR-2A manually, but they must carefully review it for accuracy and take appropriate actions (acceptance, rejection, modification, or deferment) if any discrepancies are identified.

If modifications are necessary, they should be made in GSTR-2 within the specified due dates to ensure compliance with GST regulations. Since GSTR-2A is automatically generated based on other forms, there is no specific due date associated with it.

However, if any information within GSTR-2A requires modification or correction, businesses must address these changes in GSTR-2. The due date for filing GSTR-2 falls between the 11th and 15th of the month immediately following the month for which the GST returns are being filed.

Here is how you can manage GSTR-2A:

1. If a business reviews its GSTR-2A and finds that all the invoice details match its transactions and there are no discrepancies, they can simply accept the GSTR-2A. This indicates that they agree with the information presented.

1. In cases where a business identifies errors or discrepancies in the GSTR-1 data submitted by its seller, they have the option to reject the GSTR-2A. This rejection indicates that they do not agree with the information in the document.

1. When discrepancies or errors are found in the GSTR-1 data but can be corrected, businesses can choose to modify the GSTR-2A. This allows them to make necessary adjustments to the invoice details to ensure accuracy.

1. In situations where a business requires more time to review and reconcile the invoice details, they can defer the acceptance of GSTR-2A. This deferral allows them additional time to resolve any discrepancies before taking action.

How to view GSTR-2A?

Viewing GSTR-2A on the GST Portal is a straightforward process, and here is a detailed step-by-step guide:

Step 1: Visit the official GST portal.

Step 2: Log in to the portal using your credentials.

Step 3: On the dashboard, locate and click on ‘Services.’

Step 4: From the dropdown menu, select ‘Returns,’ and then choose ‘Returns Dashboard.’

Step 5: The ‘File Returns’ page will appear. Here, you need to specify the ‘Financial Year’ and the ‘Return Filing Period.’ Once you've entered this information, click on the ‘Search’ button.

Step 6: Under the ‘GSTR-2A Download’ section, locate and click on the ‘View' option. Step 7: You will now be directed to the GSTR-2A 'auto-drafted' details page.

On this page, you can view the featured information by selecting the relevant titles. Here is a breakdown of what you can find:

1. Part A - B2B Invoices: This section displays invoices that are auto-populated based on the returns filed by your suppliers. Click on the GSTIN to view the invoices uploaded by each supplier.
2. Part A - Amendments to B2B Invoices: Here, you will find details of any amendments made by your suppliers in their GSTR-1 or GSTR-5 returns.
3. Part A - Credit/Debit Notes: This section covers all credit notes or debit notes added by your suppliers. Click on the tile to view GSTIN-wise details of debit/credit notes.
4. Part A - Amendments to Credit/Debit Notes: This section contains details of amendments made by your suppliers to the credit/debit notes.
5. Part B - ISD Credits: Details in this tile are auto-populated based on the GSTR-6 filed by an Input Service Distributor (ISD). You can also make use of the ‘Amendment to ISD Credits’ for any revisions.
6. Part C - TDS Credits: The information in this section is auto-populated based on GSTR-7 filed by dealers who deduct TDS (Tax Deducted at Source).
7. Part C - TCS Credits: This contains details of TCS (Tax Collected at Source) collected by dealers, and the information is auto-populated based on GSTR-8 filed by the TCS collector.
8. Part D - Import of Goods: This section contains details of the import of goods from overseas based on the bill of entry.

Additionally, if you wish to keep a record of the GSTR-2A document, you can choose to download it for future reference by selecting the relevant option during the viewing process.

How to Download GSTR-2A?

Downloading GSTR-2A is a necessary step, especially when dealing with a high number of invoices exceeding 500. To download GSTR-2A, you'll need the GST offline tool installed on your system. Here's a detailed guide on how to download GSTR-2A:

Step 1: Click on the 'Download' button on the GSTR-2A tile.

Step 2: After clicking the 'Download' button, you will have two options:

1. Generate JSON File to Download: If you prefer to work with JSON format, click this button to generate the data in JSON format. The generated JSON file must be opened using the Returns Offline Tool, which is available for download on the GST portal.

1. Generate an Excel File to Download: If you prefer Excel format, click this button to generate the data in an Excel-format file.

Step 3: After generating the JSON or Excel file, you can click on the hyperlink that appears, which is labeled ‘Click here to download JSON - File 1.’ This will initiate the download of the GSTR-2A file to your computer.

Step 4: Once the download is complete, you can open the JSON file in the Returns Offline Tool installed on your system. This tool is essential for viewing and working with GSTR-2A data, especially when dealing with a large number of invoices.

GSTR-2A Details

GSTR- 2A is a comprehensive document that contains several sections, as mandated by the government. Let's explore each of the headings and the details featured in GSTR-2A in detail:

1. GSTIN (GST Identification Number): This section displays the unique 15-digit PAN-based identification number issued under GST to every registered individual.

Name of Taxpayer: Here, you can find the legal name and trade name of the registered person.

Month, Year: This section specifies the relevant month and year for which GSTR-2A is being filed.

Comparision between GSTR-2A and GSTR 2B

GSTR-2A and GSTR 2B are two important documents in the context of Goods and Services Tax (GST) in India. Here, we'll provide a detailed comparison between these two documents based on several criteria:

Objective of Statement

1. GSTR-2A: It is an auto-drafted statement that furnishes input tax credit information to every recipient of supplies, based on the suppliers’ details including changes implemented later on.
2. GSTR 2B: It is a constant auto-drafted statement that furnishes input tax credit information to every recipient of supplies, based on the suppliers' data for every tax period.

Statement’s Characteristic

1. GSTR-2A: The document is dynamic since it changes from day to day, as and when a supplier informs the documents. 
2. GSTR 2B: The document is static, as it is for one month, and can't be changed based on the actions of the supplier implemented later.

When will ITC entries get transferred from sources? 

1. GSTR-2A: ITC entries get transferred when GSTR-1 is saved, filed, or submitted; GSTR-6 is submitted; GSTR-7 and GSTR-8 are filed.
2. GSTR 2B: ITC entries get transferred when GSTR-1, GSTR-5, or GSTR-6 is filed.

Maximum ITC entries visible on GST portal (without excel download):

1. GSTR-2A: It allows viewing up to 500 rows.
2. GSTR 2B: It allows viewing up to 1,000 rows.

Frequency of availability

1. Both GSTR-2A and GSTR 2B are available on a monthly basis.

Advisory on ITC claims

1. GSTR-2A: It does not consist of details on the action a registered buyer requires to undertake.
2. GSTR 2B: It consists of an advisory against every section on whether the Input Tax Credit is eligible/ineligible/reversal, for the taxpayer to undertake certain action as per his GSTR-3B.

Cut-off date for entries, to view the statement for a tax period

1. GSTR-2A: Not applicable, as it's a dynamic statement.
2. GSTR 2B: The statement will be generated on the 14th of the succeeding month, with a cut-off date of the 11th or 13th of the next month (depending on the return filing frequency).

What is the Relationship between GSTR-2A and GSTR 3B?

The relationship between GSTR-2A and GSTR 3B is essential in the context of Goods and Services Tax (GST) compliance in India. GSTR 3B is a self-declared return filed by businesses summarizing the Input Tax Credit (ITC) they are eligible to receive and the amount of GST payable for a specific tax period.

On the other hand, GSTR-2A is an auto-populated statement that provides details of the inward supplies (purchases) a business has received during the same tax period, as declared by its suppliers in their GSTR 1.

Here is a more detailed explanation of their relationship:

1. GSTR 3B - Self-declared Summary Return: GSTR 3B is a monthly self-declared summary return that businesses need to file by the 20th of the following month (or by the 22nd/24th for quarterly filers). In this return, businesses declare their total sales, purchases, and the amount of GST payable. It is essential for businesses to correctly calculate their ITC in GSTR 3B to avoid any discrepancies or errors.
2. GSTR-2A - Auto-populated Inward Supplies: GSTR-2A is an auto-generated statement that contains details of the inward supplies (purchases) a business has received from its suppliers. This information is auto-populated from the GSTR 1 filings of the suppliers. GSTR-2A is available on the GST portal and can be accessed by businesses to verify the details of their purchases as reported by their suppliers.

The relationship between GSTR-2A and GSTR 3B is one of reconciliation and verification. Here's how it works:

1. Reconciliation: Businesses are required to reconcile the details of their purchases as reported in GSTR-2A with the ITC they claim in GSTR 3B. This reconciliation is crucial to ensure that the credit being claimed as ITC in GSTR 3B corresponds to the actual purchases reported by the suppliers in GSTR-2A.
2. Detection of Excess ITC: By comparing GSTR-2A with GSTR 3B, businesses can identify any cases where they may have claimed excess ITC. Claiming excess ITC is a compliance issue, and businesses are obligated to rectify such errors to avoid penalties and interest charges.
3. Compliance and Avoiding Evasion: The reconciliation process helps in maintaining GST compliance and prevents businesses from evading taxes or claiming more credit than they are entitled to. Tax authorities may issue notices if they find discrepancies between GSTR-2A and GSTR 3B.
4. Interest and Penalties: If a taxpayer is found to have claimed excess ITC in GSTR 3B, they are required to repay the excess amount along with applicable interest. Non-compliance with GST rules can lead to fines and other penalties.

How to Prepare for GSTR-2A Reconciliation?

Preparing for GSTR-2A reconciliation is a critical step for businesses to ensure accurate reporting and compliance with GST regulations. Here's a detailed explanation of the steps to prepare for GSTR-2A reconciliation:

Step 1: Collect GSTR-2A Data: Start by downloading the GSTR-2A data from the GST portal. GSTR-2A is an auto-populated document that contains information about your purchases as reported by your suppliers in their GSTR-1 and GSTR-5 returns.

Step 2: Organize GSTR-2A Data: Once you have the GSTR-2A data, organize it for easy comparison. This data will typically include details of invoices, such as invoice numbers, invoice dates, GSTIN of the supplier, invoice value, and the amount of GST.

Step 3: Prepare Your Purchase Register: Maintain a purchase register or ledger that records all your purchase transactions. This register should mirror the information contained in your GSTR-2A data.

Step 4: Input GSTR-2A Data into the Register: Manually input the data from your GSTR-2A into your purchase register. Ensure that you enter the information accurately and consistently with the format provided in the GSTR-2A.

Step 5: Reconcile Data: Use a reconciliation tool or software to compare the data in your purchase register with the GSTR-2A data. The reconciliation process involves matching the details of each purchase transaction, such as invoice numbers, amounts, and GSTINs of suppliers, to identify any discrepancies.

Step 6: Identify Discrepancies: During reconciliation, if you find any discrepancies between your purchase register and the GSTR-2A data, investigate the reasons for these differences. Discrepancies could result from errors in reporting, delayed filings by suppliers, or other issues.

Step 7: Resolve Discrepancies: Take appropriate actions to resolve discrepancies. This may include contacting your suppliers to rectify errors in their filings, updating your records to reflect the correct information, or adjusting your input tax credit (ITC) claims if needed.

Step 8: Document the Reconciliation Process: Maintain records of your reconciliation process, including details of identified discrepancies and the steps taken to resolve them. Proper documentation is essential for audit and compliance purposes.

Step 9: File Accurate Returns: After reconciling your data and ensuring its accuracy, use the reconciled purchase register to file your GSTR-3B return. This return summarizes your ITC claims based on the reconciled data.

Step 10: Regularly Review and Update: GSTR-2A reconciliation is an ongoing process. Regularly review and update your purchase register to incorporate changes in GSTR-2A data. This ensures that your ITC claims remain accurate and compliant.