GSTR-2 and the details associated to it

GSTR-2 and the details associated to it
GSTR-2 and the details associated to it

GSTR-2 is a monthly return, which contains the details related to Inward taxable goods or services.

Why is it important to file GSTR-2?

GSTR-2 contains the details related to all the purchases as well as transactions for a month of a dealer, who is registered under GST. It also contains the details of purchases on which reverse charge is applied. Filing GSTR-2 is of utmost importance, as it aids the Government to check seller’s GSTR-1 for the buyer-seller reconciliation.

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You must be wondering, what is buyer-seller reconciliation? Let us provide you with detailed information about it.

Buyer-Seller Reconciliation

It is a process of matching taxable sales by the sellers with the taxable purchases by the buyers, this process is also called invoice matching.

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For Example: If Mr. Verma buys 500 bags from Jain Bag house and he pays Rs. 10,000 for the purchase. Then, in that case, Jain Bag House must mention Rs. 10,000 sales in its GSTR-1. Mr. Verma is required to mention this purchase in his GSTR-2 in order to claim Input Tax Credit. Until these amounts match, Mr. Verma will not be able to claim ITC.

Who is eligible to file GSTR-2?

Any taxpayer who is registered under GST is required to file GSTR-2, but here is the list of registered taxpayers who are not required to file this Form

  • Persons liable to collect TCS/TDS
  • Composition Dealers
  • Input Service Distributors
  • Non-resident taxable person
  • The suppliers of online information and database access or retrieval services (OIDAR) and who are required to pay tax on their own (as per Section 14 of the IGST Act)

What are the consequences of late filing or not filing GSTR-2?

If a taxpayer does not file GSTR-2, then he/ she will not be eligible to file their next return in GSTR-3, moreover, late filing of this form will attract heavy penalties, which will be Rs. 200/ day, which will be divided into Rs. 100 each under CGST and SGST. The maximum penalty can be up to Rs. 5000. There is no penalty on late filing of IGST.


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