GSTR-2A and 2B: What is the Difference?

GSTR-2A and 2B sound confusing to taxpayers due to their overlapping compliance responsibilities. However, they have distinct roles that ensure report accuracy and seamless ITC reconciliation. 

Let’s check out what is GSTR-2A and 2B, along with their differences. 

What is GSTR-2A?

GSTR-2A refers to a dynamic tax return on purchases made, and it is automatically computed for each business by the GSTN portal. When a supplier or seller files GSTR-1, the details are captured into form 2A of GSTR. It fetches the details of goods or services purchased in a month by the seller from their GSTR-1. 

Taxpayers registered under the Indian GST regime should refer to the GSTR-2A reconciliation statement for input tax credit (ITC) details for GSTR-3B and GSTR-9 filing. However, according to the August 2020 circular, taxpayers must refer to GSTR-2B, which is considered a static version of GSTR-2A, for GSTR-3B preparation. 

What is GSTR-2B? 

GSTR-2B offers eligible and ineligible ITC details for every month. It is the same as form 2A of GST returns but it is static or remains constant for a certain time. This means, when GSTR-2B is accessed on the GSTN portal, the information in it remains unchanged for subsequent edits made by the suppliers in the later months. 

All regular and SEZ taxpayers can generate Form 2B of GSTR. Recipients can create the form based on Forms 1, 5, and 6 of GSTR, which are furnished by the suppliers. 

If you have understood GSTR-2A and 2B, let’s scroll down to see the difference. 

What is the Difference Between GSTR-2A and 2B? 

Category	GSTR-2A	GSTR-2B
Purpose	GSTR-2A reconciliation statement is an auto-drafted declaration that depicts the ITC details to every consignee based on the supplier’s data with edits done later.	It is a constant auto-drafted declaration that caters to ITC details for every supply recipient, which is based on supplier details for every tax period.
Type of Statement	It is dynamic in nature as it changes every day with change in supplier reports and documents	It is static in nature, as GSTR-2B doesn’t change for months based on supplier actions taken later.
Update Frequency	It updates continuously whenever the supplier uploads invoices in form 1, 5, and 6 of GSTR.	It updates once in a month and remains consistent even if the changes are made later.
Source of Information	The details are fetched from GSTR-1 or IFF, GSTR-5, GSTR-6, GSTR-7, GSTR-8, and ICES.	The information is sourced from GSTR-1 or IFF, GSTR-5, GSTR-6, and ICES.
Importance	It is primarily crucial for identifying missing invoices or mismatching entries and tracking uploaded invoices.	It is crucial for ITC reconciliation and claiming eligible credits for GSTR-3B.
When do ITC entries Get Transferred from Sources?	GSTR-1: When the data is saved, returns are filed or submitted.  GSTR-6: When the returns are submitted.  GSTR-7 and GSTR-8: When the returns are filed.	When GSTR-1, GSTR-5, or GSTR-6 are filed.
ITC Claim Advisory	It does not have an advisory on the actions a registered buyer should take.	It has an advisory for every section on whether the ITC is eligible/ ineligible/ reversal for the taxpayer to act appropriately in GSTR-3B.
Deadline for entries to see the tax period statements	There’s no deadline for entries to see the tax period statements, as GSTR-2A reconciliation is dynamic.	The deadline for GSTR-2B is the 11th or 13th of next month. It depends on the return filing frequency.  Generally, the statement is generated on the 14th of the next month.
Maximum ITC entries viewed on GST portal	It displays 500 rows in total	It displays 1000 rows in total

Benefits of GSTR-2A and 2B 

Benefits of GSTR-2A

1. It offers a real-time detailed overview of inward supplies and helps verify the ITC claims, reducing discrepancies.
2. It promotes transaction transparency, fostering trust between suppliers and recipients for improved business relationships.  
3. GSTR-2A reconciliation helps businesses review whether suppliers have filed returns on time, identifying non-compliant suppliers and preventing potential ITC mismatches. 
4. It also aids better financial management by offering a complete view of the ITCs, allowing businesses to maintain appropriate liquidity. 

Benefits of GSTR-2B   

1. Since GSTR-2B is static and doesn’t change for a month once generated, it offers a clear and definitive overview of available ITC, ensuring accuracy. 
2. Through a monthly summary of eligible and ineligible ITCs, it offers a simplified reconciliation process, allowing businesses to easily settle their ITC claims with data received from suppliers. 
3. It offers a detailed overview of ITCs fostering businesses to plan their tax payments efficiently and manage cash flow smoothly. 
4. In addition, it identifies errors between the taxpayers’ records and data furnished by the suppliers, helping businesses to take corrective actions and avoid penalties. 

Conclusion 

Hopefully, you have understood the meanings and differences of GSTR-2A and 2B. Please post your queries below, and we will surely answer them. 

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FAQs

1. Can I claim ITC as per GSTR-2A or 2B? 

A taxpayer is advised to claim ITC as per GSTR-2B as it provides a static and accurate summary of eligible and ineligible ITCs. 

2. Is GSTR-2A for sale or purchase? 

GSTR-2A is a purchase-related auto-drafted tax declaration. 

3. Who will file GSTR-2A? 

GSTR-2A is auto-generated for businesses registered under goods and service tax. 

4. What is the primary difference between GSTR-2A and 2B? 

The primary difference between GSTR-2A and 2B is that GSTR-2A is dynamic, while GSTR-2B is static.