GST Upcoming changes in GSTR2A and GTSN

Introduction

GSTR2A reflects the purchases and is reflected automatically for each business on the GST portal. The GSTR1 filed by every seller gets captured in the GSTR2A. The purchase of goods/ services in a given month is taken from the sellers GSTR1 and is auto populated in GSTR2A. The GSTR2A is a read only Return which cannot be edited and therefore is only for reference purpose and reflects list of all invoices from various sellers during the month and therefore one doesn’t have to file GTSR2A. The option of downloading copy of GSTR2A is available on the portal.

Effects of delay in filing GSTR1

In case the seller delays in filing the GSTR1 it will not reflect in your GSTR2A and therefore there will be a mismatch while claiming ITC. As while filing GSTR3B one has to match the actual ITC claimed in books with the ITC that reflects in the GSTR2A. Non filing or delay in filing of GSTR1 thereby restricts the auto reflection of ITC in GTSR2A. It is important under the GST framework for the taxpayer to reconcile the ITC claimed in Form GTSR3B and Form GSTR2A. GST3B being a summary return the amount of ITC that is disclosed in Table 4(A)(5) should match with tax details in for GSTR2A.

Reason to reconcile GSTR3B with GSTR2A

1. Tax evasion and evader have to face actions from department for claiming ITC on basis of fake invoices
2. Reconciliation enables to keep a record and track of invoices which are missed or in case any double entries or claims
3. Mismatch in GTSR1 and GSTR3B is given an opportunity for identification and rectification
4. The default on the seller part for non- filing of GTSR1 can be communicated and resolved in order to solve any variance.
5. To ensure that if any notice is received by the department for any discrepancies or excess ITC claims if timely reconciliations are done the same can be avoided or atleast one has the opportunity of representing themselves during the hearings and also is prepared with the workings and presentation.

Upcoming changes and relaxations in GSTR2A and GSTN

1. Linking of GTSR1 with GSTR3B, PDF of GSTR3B will be sent over email and linking of GTSR2A/ GSTR2B and ICEGATE data with GTSR3B
2. GSTR2A to reflect return filing status of GSTR1 and GSTR3B of vendors, and new GSTR2B to be introduced in the form of auto draft statement providing an advisory on credit that can be reversed etc.
3. Status of amendment of invoices will be shown with month
4. Flow of ITC dues to IGST paid on import from ICES to GST system
5. Facility to create vendor master/ HSN master on taxpayer dashboard
6. Matching tool for comparison of system drafted purchase register
7. Static GSTR2A will be generated on monthly basis along with document level classification of ITC available and unavailable
8. Instant download will be available for PDF and Excel, thereby saving time in comparison with the current scenario
9. Filters and search options will be provided for beyond 1000 records/ entries