In 39^th GST Council meeting held on March 14, 2020, GST Council recommended linking data available in GSTN viz. linking outward supply data in Form GSTR-1 and Form GSTR-3B and Input Tax Credit (‘ITC’) data between Form GSTR-2A and Form GSTR-3B.

On August 29, 2020, the Government has issued Press Release and Advisory and introduced Form GSTR-2B which indicates ITC available to taxpayer for relevant tax period. The important clarifications are as follows:

• Form GSTR-2B will be a static statement reflecting details of outward supplies furnished by suppliers in Form GSTR-1 (Outward supply details), Form GSTR-5 (non-residents’ return) and Form GSTR-6 (ISD return).
• Form GSTR-2B will be available to taxpayer on 12^th of month succeeding relevant tax period. For example, taxpayer can view Form GSTR-2B for July 2020 on August 12, 2020.
• Taxpayer can view and download details of all B2B invoices, credit note, debit notes etc. and can avail ITC basis information reflected in Form GSTR-2B.
• Details of import of service will not be reflected in Form GSTR-2B and taxpayer needs to claim ITC as per existing process.
• Sample Form GSTR-2B reflecting details of available and non-available ITC and linking with Form GSTR-3B is attached as Annexure 1. Non-available ITC covers following scenarios:

–  ITC beyond due dates under Section 16(4) of the Central Goods and Services Tax Act, 2017.

–  ITC where supplier’s GSTIN and place of supply are in same State while recipient is in another State.

• Taxpayer need to reconcile details reflected in Form GSTR-2B with its books of accounts.
• Path to view Form GSTR-2B: Login to GST Portal > Returns Dashboard > Select return period > Form GSTR-2B.
• Instructions to Form GSTR-2B specifically provides that taxpayer must refer to Form GSTR-2A for additional details.
• Details of import of goods and supplies received from Special Economic Zone (‘SEZ’) unit / SEZ developers will be synchronized with ICEGATE and available on real time basis. Details of bills of entry filed through EDI port upto August 6, 2020 will be reflected in Form GSTR-2A. Details of bills of entry filed through non-EDI port is not yet reflected in Form GSTR-2A.

NITYA Comments: Form GSTR-2B will increasing compliance and ITC reconciliation burden for taxpayers. Taxpayers need to reconcile Form GSTR-2B with Form GSTR-3B as well as Form GSTR-2A for availing ITC. Apart from that, taxpayers need to ensure ITC matches with their books of accounts. Government should have improved existing Form GSTR-2A and incorporated additional features instead of introducing another Form.

Notably, there is no legal provision mandating availment / matching ITC basis Form GSTR-2B. Additionally, Form GSTR-2B contains various aspects which are under dispute. For example: eligibility of ITC where place of supply is in different State, validity of time limit for availing ITC etc.

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