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GSTR-2A: Details of Auto Drafted Supplies
GSTR-2A was introduced to enhance transparency, reduce tax evasion, and make the process of claiming the Input Tax Credit (ITC) simple. This form affects how businesses manage their filing of returns. GSTR-2A is an auto-populated document which can only be read-only reflects the purchases made by the registered taxpayers which is reported by the suppliers in their GSTR-1 form.
In this article, we will explore GSTR-2A in detail, its significance, content, steps to download GSTR-2A, and reconciliation of GSTR-2A, GSTR-2B, and GSTR-3B.
Contents :-
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What is GSTR-2A?
GSTR-2A is an auto-generated statement. It can only be read and not edited. The GST-2A provides the details of inward supplies made by the taxpayer and the available input tax credit. The information provided by the suppliers in form GSTR-1 is automatically populated in GSTR-2A. Therefore, understanding form GSTR-2A is very crucial since it affects the tax filings of the taxpayers.
How is GSTR-2A generated?
GSTR-2A is an auto-populated form generated by the GST portal. It provides a read-only view of the inward supplies or purchases made by the businesses. Form GSTR-2A is generated in the below manner:
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Uploading outward supplies by the supplier: The first step in generation of GSTR-2A is the furnishing of GSTR-1 form by the suppliers. The supplier furnishes the details of outward supplies made by them in form GSTR-1.
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Auto-population of Form GSTR-2A: Upon successful and timely submission of form GSTR-1 by the supplier, the GSTR-2A is auto-populated and is reflected in the form.
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Real-time updates: GSTR-2A gets updated on a real-time basis. It is a dynamic form and gets updated as and when the supplier uploads the GSTR-1 form.
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Viewing Form GSTR-2A: The registered taxpayers can view form GSTR-2A via logging into the GST portal. The form can be viewed only and cannot be edited by the taxpayer.
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Generated on a monthly basis: GSTR-2A is generated on a monthly basis and provides updated information to the businesses on their eligibility for the input tax credit.
How to View GSTR-2A? and How to Download GSTR-2A?
To view and download GSTR-2A, follow the below straightforward steps:
Login to the GST portal: Login to the GST portal at https://www.gst.gov.in/ using the login details.
Go to the ‘Return Dashboard’: After logging in, navigate to the ‘Services’ menu > select ‘Returns’ > go to the ‘Returns Dashboard’.
Choose the financial year and return filing period: Select the relevant financial year and the return filing period for which the GSTR-2A is to be viewed. Then click on the ‘Search’ button.
Access form GSTR-2A: Under the ‘Auto drafted details for viewing only’ section, click on ‘GSTR-2A’ and then click on ‘View’ button.
View or download form GSTR-2A: After clicking on the ‘View’ button you will be redirected to the GSTR-2A page. This page will display the auto-drafted information as received from the suppliers related to inward supplies. Information such as: invoices uploaded by the suppliers, credit notes/debit notes, and any other information will be displayed.
On the GSTR-2A page, several options will be provided for downloading the data. The entire GSTR-2A can be downloaded or a few specific sections as well. Click on the ‘Download’ button based on the desired choice. The GSTR-2A will be downloaded in a compressed ZIP format. After downloading, the ZIP file must be extracted in a readable format either JSON or Excel.
How to File GSTR-2A?
GSTR-2A is generated by the GST portal automatically, the taxpayers are not required to file the same separately. When suppliers provide details in Form GSTR-1, the GSTR-2A gets auto-populated. GSTR-2A can be used as a reference to verify and reconcile the purchase invoices with the sales invoices that are uploaded by the supplier. Following are the suggestions through which the registered taxpayers can use GSTR-2A for complying with the GST provisions and have a smooth reconciliation process:
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Access and review Form GSTR-2A: Follow the steps and access the GST portal to view Form GSTR-2A. While viewing the form, match the entries under the form with the invoices received from the supplier. Check for the accuracy of invoice date, GSTIN details of supplier, invoice value, and the amount of GST.
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Communicate and correct the deficiencies: In case of any discrepancies in GSTR-2A, the supplier must be communicated for the same. The supplier will have to amend the GSTR-1 in the subsequent return filing period and the same must be reflected in the GSTR-2A.
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Use GSTR-2A for completing the reconciliation: GSTR-2A is useful in reconciliation. The form can be used to reconcile the purchase records and the books of accounts. The taxpayer must ensure to have all the supporting invoices corresponding to the entries made in GSTR-2A for accurate claiming of ITC.
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Prepare GSTR-3B for filing: Using the finalized purchase records and reconciliation as per GSTR-2A, the taxpayer can prepare GSTR-3B accurately. The ITC claimed in GSTR-3B should match with the ITC reflected in GSTR-2A and GSTR-2B.
Content of GSTR-2A
Following is the breakdown of usual content found in GSTR-2A:
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GSTIN of supplier: The Goods and Service Tax Identification Number (GSTIN) of the supplier is specified in Form GSTR-2A.
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Supplier’s name: The supplier’s legal name as per GST registration is specified.
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Invoice details: The details about the invoice such as invoice date, invoice number, and the value of goods or services supplied is mentioned in the GSTR-2A form.
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GST rate and tax amount: The information related to GST rate applicable on the supplies made of goods or services are provided. Moreover, total tax amount charged, that is, CGST, SGST, IGST, and cess, if any are also mentioned under this section.
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Place of supply: The place of supply details are also mentioned. Since, it is crucial for determining the IGST, CGST, and SGST applicability based on inter-state or intra-state supplies.
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Place of supply: The place of supply details are also mentioned. Since, it is crucial for determining the IGST, CGST, and SGST applicability based on inter-state or intra-state supplies.
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Reverse charge mechanism: This section provides information about reverse charge mechanism (RCM). It is essential to know RCM details since the liability to pay GST will be shifted to the recipient instead of the supplier.
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Invoice type: The type of invoices are specified under this category. Whether the invoice is of B2B type, B2BUR (unregistered), whether it is an import of goods or services, and so on.
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HSN/SAC code: The HSN and SAC code of the respective goods and services are also mentioned under this section of the form.
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Amendments: The amendments made in the previously filed returns are reflected in this section.
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Debit and credit notes: This section provides the details of debit and credit notes issued by the supplier for discounts, sales returns, and any other details. The note number, date, and the adjusted amount of tax are mentioned under this head.
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Input service distributor (ISD) credits: This section provides the details of ISD invoices which are essential for entities having multiple multiple branches or divisions.
Difference between GSTR-2A and GSTR-2B
Following are the different between GSTR-2A and GSTR-2B:
Consequences of Delay in GSTR-1 or Failure to Upload Invoices by the Seller?
If the seller delays to file GSTR-1 within time, there would be consequences in terms of late fees and penalties, interest on delayed payments, the compliance rating will be affected, and the e-way bill generation will be blocked. Apart from the seller, the buyer will also face the following consequences:
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Delay in claiming the Input Tax Credit (ITC): The buyer becomes eligible to claim ITC only after the supplier has filed Form GSTR-1 on time and not otherwise. Thus, any delay from the supplier’s end to file GSTR-1 can lead to delay in claiming ITC by the buyer.
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Challenges in reconciliation: Delay from the supplier’s end to upload the invoice subsequently delays the reconciliation process of the buyer. This may lead to potential mismatch in GSTR-2A/2B, and GSTR-3B.
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Challenges in reconciliation: Delay from the supplier’s end to upload the invoice subsequently delays the reconciliation process of the buyer. This may lead to potential mismatch in GSTR-2A/2B, and GSTR-3B.
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Implications on cash flows: The delay in claiming ITC due to the non-compliance on supplier’s part can affect the cash flows of the buyer. This is because the tax credit component is essential for businesses to manage the working capital effectively.
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More burden of compliance: To claim own ITC, the buyers will have to approach suppliers to ensure compliance. This increases the administrative burden on the buyer and will affect the business relationships in the long run.
Reconciliation of GSTR-2A, GSTR-2B, and GSTR-3B
The reconciliation of GSTR-2A, GSTR-2B, and GSTR-3B is a critical step in the GST compliance framework. It ensures that the Input Tax Credit (ITC) claimed by the business matches the tax credits reflected through the invoices uploaded by the suppliers. Following are the steps for the reconciliation process:
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Understanding each form type: Before beginning with the reconciliation of GSTR-2A, GSTR-2B, and GSTR-3B, it is necessary to understand what each form means and its content, and what information will be provided by each form.
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Accumulate all the data: The latest form GSTR-2A and GSTR-2B should be downloaded from the GST portal. Additionally, all the purchase records must be compiled along with the details of ITC to be claimed.
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Reconcile purchase records with GSTR-2A and GSTR-2B: Compare the purchase invoices as per records with the invoices mentioned in GSTR-2A and GSTR-2B. Check for missing invoices, discrepancies in invoice or GST amounts. Make sure that the eligible amount of ITC as per purchase records is reflected in GSTR-2A and GSTR-2B. In case of any discrepancies, the supplier should be followed up to correct the discrepancies or upload the relevant documents.
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Reconcile ITC claimed in GSTR-3B: Once GSTR-2A and GSTR-2B are reconciled, make sure that the amount of ITC in GSTR-3B matches with the ITC as per GSTR-2B, and the purchase records. In case of discrepancies in GSTR-3B, make changes in the subsequent month’s GSTR filings.
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Document the discrepancies and take corrective actions: Document all the discrepancies observed while filing GSTR-3B. Follow-up with the suppliers for taking corrective action. Also, keep a record of the c communications with the suppliers and adjustments made for audit purposes.
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Monitor continuously: Reconciliation is not a one-time activity. It is a continuous process. The buyer has to regularly monitor GSTR-2A and GSTR-2B, and the respective adjustment must be made in ITC while filing GSTR-3B.
Significance of Reconciling GSTR-2A, GSTR-2B, and GSTR-3B
Reconciling GSTR-2A, GSTR-2B, and GSTR-3B is essential as it ensures compliance with the tax laws. The significance of reconciling GSTR-2A, GSTR-2B, and GSTR-3B are detailed as below:
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Ensures accurate claim of ITC: Reconciliation facilitates identification of the accurate claim of ITC. This ensures that businesses claim only the correct amount of ITC and thereby optimizing their tax liabilities.
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Enhances compliance: Regular reconciliation helps in identifying and rectifying any errors at the early stage, thereby reducing the risk of non-compliance.
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Supports audit preparedness: Reconciliation facilitates businesses to be prepared for GST audits, with proper support for compliance and due diligence in tax filings.
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Facilitates effective vendor management: Reconciliation supports communication between the vendor and the buyer to rectify any discrepancy in GSTR-1 filed by the supplier. This fosters transparency and accountability between the vendor and the businesses.
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Provides real-time business insights: Since GSTR-2A is updated on a real-time basis, an ongoing reconciliation of the same with GSTR-2B and GSTR-3 provides real-time insights of the business.
Frequently Asked Questions
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Explain GSTR-2A in short.
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GSTR-2A is a dynamic form which is in a read-only format. It provides the details of inward supplies. The GST portal automatically generates Form GSTR-2A once the supplier furnishes GSTR-1.
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What is the frequency of updates of GSTR-2A?
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Since GSTR-2A is dynamic in nature, it gets updated on a daily basis. As and when the suppliers upload or change the invoices in their GSTR-1, GSTR-2A also gets updated on a real time basis.
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Can the entries in GSTR-2A be modified or edited?
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GSTR-2A is a read-only document and it cannot be edited. To modify or amend GSTR-2A, the supplier has to be intimated to make changes in his GSTR-1, which will be reflected in the GSTR-2A subsequently.
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How to correct the discrepancies in GSTR-2A?
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GSTR-2 is a return which is used to report the inward supplies by the recipient. Currently, filing of GSTR-2 is revoked. Whereas, GSTR-2A is a read-only form auto-generated by the GST portal. It serves the information related to inward supplies eligible for claiming ITC.
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Does GSTR-2A need to be filed?
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No. GSTR-2A is auto-generated and available on the portal for viewing. It serves as a reference document for reconciliation of purchase invoices with the information furnished by the suppliers.
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How to view GSTR-2A?
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Login to the GST portal using the valid login credentials. Navigate to the ‘Returns Dashboard’, select the appropriate tax period to view GSTR-2A.
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How does GSTR-2A affect the Input Tax Credit (ITC)?
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GSTR-2A is important for verifying the eligibility and accuracy of the Input Tax Credit (ITC) claimed on inward supplies. Through GSTR-2A, the invoices uploaded by the suppliers are reflected.
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What happens if the supplier delays filing of GSTR-1?
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If the GSTR-1 is delayed by the supplier, the invoice details will not be reflected in the GSTR-2A of the receiver unless GSTR-1 is filed. This will delay the eligibility of claiming ITC of the receiver.
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What are the consequences for discrepancies found in GSTR-2A?
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There is no penalty for discrepancies found in GSTR-2A. However, inconsistencies can lead to delay or rejection of ITC claims, thereby affecting the working capital or cash flow of the receiver. Thus, the reconciliation of GSTR-2A is essential to ensure all the invoices are reflected correctly and accurately.
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
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