Everything about GSTR 2B: A Comprehensive Guide

GSTR-2B is a static monthly auto-drafted statement introduced by the GST Council. This helps taxpayers to claim Input Tax Credit (ITC). It is automatically generated and reflects inward supplies as per the GSTR-1, 5, and 6 filings by the supplier. It also helps reconcile purchase records and ensures accurate tax filings. Once it is generated, it becomes static compared to GSTR-2A.  It becomes an assurance for better accuracy and compliance in the Goods and Services Tax system.  In this piece of writing, you will get step-by-step guidance about GSTR-2B and more. 

What is GSTR 2B?

GSTR-2B refers to an auto-generated statement which is available every month on the GST portal. It focuses on helping taxpayers in reconcile their eligible Input Tax Credit (ITC). The data in GSTR-2B is based on returns filed by suppliers with the help of GSTR-1, GSTR-5, and GSTR-6 for that tax period. Once this statement is generated on the GST portal, it becomes static and does not change. However, it helps to make the GSTR-3B easier and reliable than the older system. It is useful for all regular taxpayers, including those following the Quarterly Return Monthly Payment (QRMP) scheme.

Contents and Features of GSTR-2B

The input tax credit on purchases from any regular taxpayers, non-resident taxable persons, and the input tax credit distributed by the input service distributor will be available in GSTR-2B.

Contents

Listed below are the contents of GSTR-2B:

• The Summary statement specifies ‘ITC available’ and ‘ITC not available’ for each section.
• Each section’s advisory outlines the kind of action that taxpayers need to take.
• You can view and download the document-wise details with amendments including invoices, debit notes, credit notes and so on.
• You can use cut-off dates and advisories to generate and use GSTR-2B
• Import from SEZ units/developers and Import of goods which will be available from GSTR 2B of August 2020 onwards.

The GSTR-2B form has been classified into two categories:

ITC is available

In PART-A of ITC, available includes the details of inward supplies and credit-debit notes (CDN). These details contain the import of goods and amendments, which are categorised into four parts:

• ITC for supplies from registered persons
• ITC from ISD
• ITC towards inward supplies on reverse charge
• ITC on Import of goods

On the other hand, PART-B of ITC is defined as ITC Reversal. It includes the category, which is known as “others” and contains details of amendments and credit notes.

ITC is not available

In PART-A of ITC is not available, contains the details of the purchase invoice or Credit/Debit Note (CDN). It contains amendments that are divided into three categories:

• All other ITC (Input Tax Credit) for supplies from registered persons
• ITC from ISD (Input Service Distributor)
• ITC towards inward supplies on reverse charge.

In contrast, PART-B of ITC not available contains the details of Credit/Debit Note (CDN) and amendments under the heading of “others”.

The following scenarios of the input tax credit will be marked as “not available”:

• ITC not available can occur if there is an expired time limit to claim Input Tax Credit (ITC) on a debit note or invoice under section 16(4) of the CGST Act. The deadlines is the earlier of the following two dates that include, 30th September of the year following the financial year for the issuance of an invoice or debit note and the date of filing the accurate annual returns.
• It can occur when the state of the supplier and the place of the supplier are the same. On the other hand, the recipient is located in another state.
• If the purchases will not be eligible for Input Tax Credit (ITC) on an invoice or debit note which was issued for the supply of goods or services, or both.

Features

Listed below are the key features of GSTR-2B:

• The registered taxpayers and their authorised representatives can easily view and download the summary statement of GSTR-2B as a PDF file
• As a registered taxpayer, you can easily get the section-wise details or download the Input Tax Credit (ITC).
• There is an availability of section-wise advisory.
• GSTR-2B allows a taxpayer who is the recipient of the inward supplies to perform a text search for all the generated records.
• It provides an option to view, filter and sort data of the auto-drafted ITC details.
• It allows users to hide or view columns as per their convenience on the official GST portal
• Users have the option for a full download of GSTR-2B and the availability of advanced search. Even if the file contains more than 1,000 records.
• A taxpayer will receive an email or an SMS about the generation of GSTR-2B.
• The documents which are filed by suppliers or Input Service Distributor (ISD) in their GSTR-1, GSTR-5, and GSTR-6 have been reflected.

When was GSTR-2B made available?

GSTR-2B is available for taxpayers starting from August 2020. Initially, the statement was available on the 12th day of the month following the tax period up to January 2021. For example, GSTR-2B for August 2020 is available on 12th September 2020. From January 2021 onwards, the generation date moves to the 14th of the following month. GSTR-2B for February 2025 is available on 14th March 2025. This revised timeline allows suppliers more time to upload their invoices. Taxpayers can view the exact dates under the ‘View Advisory’ tab on the GST portal for reference.

Who Should Use GSTR 2B?

Listed below are the eligibility criteria for GSTR-2B:

1. Regular Taxpayers

GSTR-2B is to be used by any business registered under the Goods and Services Tax system to file monthly or quarterly returns. This statement helps the business in determining the correct Input Tax Credit (ITC) before filing GSTR-3B. It provides data at an invoice level that matches their purchase records with supplier filings for accurate ITC claims without any discrepancy.

2. QRMP Scheme Users

Taxpayers who have opted for the Quarterly Return Monthly Payment (QRMP) scheme file GSTR-3B quarterly, but they receive GSTR-2B every month. Even though their returns are quarterly, monthly access to GSTR-2B allows them to monitor ITC regularly.  It confirms that they are constantly monitoring supplier compliance and avoiding any mismatch while filing quarterly returns.

3. Input Service Distributors (ISDs)

The Input Service Distributor collects Input Tax Credit (ITC) on services used by multiple branches or units. GSTR-2B reflects all the eligible credits received from service providers. ISDs use this information to distribute the credit accurately at different locations of the same company. It maintains compliance and prevents the over-allocation or under-allocation of credit.

4. SEZ Units and Developers

Special Economic Zone (SEZ) units and developers will receive supplies from both domestic and international suppliers. GSTR-2B captures these details and assists the SEZ entities in verifying their eligible ITC. It ensures that only valid and reported supplies are considered for credit claims, which supports precise tax reporting.

5. Businesses Engaged in Imports

Importers will be able to view credit data related to imports in GSTR-2B itself after its integration with the ICEGATE portal. This will help confirm that customs and import entries are correctly reflected in the GST system for claiming ITC on imports.

6. Casual Taxable Persons

Businesses with provisional GST registration for events or exhibitions will continue to use the GSTR-2B return throughout their operational period. This helps them to track Input Tax Credit (ITC) from inward supplies and claim it appropriately before their registration expires.

How to Download GSTR-2B from the GST Portal?

Below is the step-by-step process to download GSTR-2B from the GST portal:

Step 1: Log in to the GST Portal

As a user, you must visit the official GST portal and log in with your GSTIN, username, and password. Once you have submitted the details, the dashboard will be appear on the screen.

Step 2: Open the Returns Dashboard

Next, you need to click on the “Service” menu and select “Returns” option. Then, you need to click on the “Returns Dashboard" option.

Step 3: Select the Relevant Tax Period

In the next step, you must select the “Financial Year” and the “Return Filing Period” from the drop-down list. Then, you need to click in the “Search” button.

Step 4: Choose the GSTR-2B Option

You will find two options, including “View” or “Download” on the GSTR-2B tile. You can choose an option as per your needs. So,

• You can choose the “DOWNLOAD” option if the GSTR-2B records are more than 1, 000. You can download the data in Excel or JSON format by clicking the download button from the download page.

• You can select the “VIEW” option if the total number of records is less than 1,000.

Step 5: Take Action Based on Selected Option

You need to take appropriate action based on your selected option. So,

1. If you choose “DOWNLOAD” Option:

You must click on the “Generate Excel File” option to download and save the report in Excel format. You may also choose “Generate JSON File” option to use the data in the GST offline tool for reconciliation.

2. If you choose “VIEW” option:

You will find the screen opens with two main sections that is “Summary” and “All Tables”.

The summary tab provides an overview of the Input Tax Credit (ITC), which is divided into two parts:

• Part A shows the ITC Available.
• Part B highlights the ITC not Available.

You can click on document links such as B2B invoices, debit notes, or their amendments to see complete details.

All Tables Section

This tab shows the same information as the Summary but in tabular format. Categories like B2B, CDNR, ISD, imports, and SEZ inward supplies can be seen here. You can sort the data document-wise or supplier-wise by applying filters.

However, these steps help the taxpayers access GSTR-2B accurately, use it for checking Input Tax Credit, and ensure smooth GST compliance.

Benefits of Using GSTR-2B

Listed below are the key benefits of using GSTR 2B:

Accurate Input Tax Credit (ITC) Calculation

GSTR-2B reflects the actual amount of ITC that can be claimed by a taxpayer for a particular tax period. It distinguishes between eligible and ineligible credit. This keeps businesses away from claiming incorrect ITC. Consequently, the possibility of notices and penalties from the GST department decreases.

Easy Reconciliation with Purchase Records

GSTR-2B matches the data which is filed by suppliers with the records maintained by the taxpayer. This helps identify missing invoices, mismatches, or duplicate entries. It supports the timely correction of errors before filing GSTR-3B. This leads to better control over the ITC process.

Fixed and Consistent Format

Once the GSTR-2B statement is generated (usually on the 14th of each month), it remains unchanged. It does not update even if the supplier files return later. This gives taxpayers a reliable reference document for ITC every month. It supports better planning and reduces confusion.

Invoice-Level ITC Details

GSTR-2B provides detailed information about each invoice, credit note, and debit note, along with import transactions. It categorizes all entries under specific tables like B2B, ISD, and SEZ. This format helps the taxpayer keep track of each and every document related to the Input Tax Credit (ITC). They can also filter data by supplier or document. 

Timely Error Detection Through IMS

The GST portal introduces the Invoice Management System (IMS). This allows taxpayers to accept, keep pending, or reject the invoices. This facility helps in resolving mismatches before the GSTR-2B freezes. It confirms that only valid invoices remain in the final ITC report.

Improved Transparency and Compliance

GSTR-2B gives a clear picture of ITC, advisory notes, and classification, thus helping the taxpayer in ensuring compliance under Section 16 of the CGST Act, thereby instilling discipline in tax filing and preparing for audits. A well-defined ITC trail enables smooth working with tax professionals and internal teams.

Recent Updates on GSTR 2B

The word "autogenerated" has been removed from the amendment to Section 38(1), which indicates that GSTR-2B may not continue to be fully system-prepared. Presently, verification and matching of invoice details and input tax credit have to be done at the business level through the Invoice Management System (IMS). Businesses cannot depend on pre-filled information only. They must check accuracy before filing their return statements.

Conclusion

GSTR-2B helps businesses in claiming appropriate Input Tax Credit (ITC) by providing data in a consistent and document-wise manner. Its timely reconciliation with purchase records reduce mismatches and tax issues. Regular use of GSTR-2B will facilitate better compliance under the GST regime.  Businesses need to explore automation tools to make the matching process faster and error-free. However, this helps to save time and ensures smooth return filing and reduces the chances of disputes or notices. If you need any assistance regarding GSTR 2B, contact Online Legal India to get assistance.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.
FAQ

Q1. What is GSTR-2B, and how is it different from GSTR-2A?

GSTR-2B is an auto-generated and static statement that reflects both the eligible and ineligible Input Tax Credit (ITC) for a period.

Q2. When is GSTR-2B available for a tax period?

GSTR-2B will be made available on the 14th of the next month for which the return is being generated. For example, GSTR-2B for February 2025 will become available on 14th March 2025.

Q3. Is it possible for the taxpayer to edit GSTR-2B?

No, it is not possible for taxpayers to edit GSTR-2B. This is because it is read-only statement which is generated from the data filed by suppliers in GSTR-1, GSTR-5, and GSTR-6. Taxpayers need to use it to reconcile Input tax credit (ITC). It also allows them to make corrections through supplier communication or the Invoice Management System (IMS).

Q4. What should be done in case any invoices are missing in GSTR-2B?

If the invoices are missing in GSTR-2B, you must verify it with the supplier whether they have filed GSTR-1 or IFF within the cut-off date. If they did not filed it, you can request them to do it. The missing data will appear in the next cycle of GSTR-2B.