FORM GSTR 2

Details of inward supplies of goods or services

What is GSTR 2 ?

GSTR 2 gives complete information on Inward Supply, i.e., purchases for a given tax period. Every registered person is required to file GSTR 2, the data of which is used by the government to check the sellers GSTR 1 data for buyer-seller reconciliation.

Buyer-seller reconciliation or invoice matching – is a process of matching taxable sales by the seller with the taxable purchases of the buyer. It is vital because ITC on purchases will only be available if the details of purchases filed in GSTR-2 return of buyer matches with the details of sales filed in GSTR-1 of the seller.

FORM GSTR-2 PDF link

What is FORM GSTR 2 ?

FORM GSTR 2 is furnished to file the GSTR 2 returns. It contains various sections and is explained as follows.

FORM GSTR-2 PDF link

Terms used:

a. GSTIN: Goods and Services Tax Identification Number

b. UIN: Unique Identity Number

c. UQC: Unit Quantity Code

d. HSN: Harmonized System of Nomenclature

e. POS: Place of Supply (Respective State)

f. B to B: From one registered person to another registered person

g. B to C: From registered person to unregistered person

3. Inward supplies received from a registered person other than the supplies attracting reverse charge

4. Inward supplies on which tax is to be paid on reverse charge

Table 3 & 4 to capture information of:

(i) Invoice-level inward supply information, rate-wise, pertaining to the tax period
reported by supplier in GSTR-1 to be made available in GSTR-2 based on autopopulated
details received in GSTR-2A;

(ii) Table 3 to capture inward supplies other than those attracting reverse
charge and Table 4 to capture inward supplies attracting reverse charge;

(iii) The recipient taxpayer has the following option to act on the auto
populated information:

a. Accept,

b. Reject,

c. Modify (if information provided by supplier is incorrect), or

d. Keep the transaction pending for action (if goods or services have
not been received)

(iv) After taking the action, recipient taxpayer will have to mention whether
he is eligible to avail credit or not and if he is eligible to avail credit,
then the amount of eligible credit against the tax mentioned in the
invoice needs to be filed;

(v) The recipient taxpayer can also add invoices (not uploaded by the
counterparty supplier) if he is in possession of invoices and have
received the goods or services;

(vi) Table 4A to be auto populated;

(vii) In case of invoices added by recipient tax payer, Place of Supply (PoS)
to be captured always except in case of supplies received from registered
person, where it is required only if the same is different from the location of the
recipient;

(viii) Recipient will have the option to accept invoices auto populated as well
as add invoices, pertaining to reverse charge only when the time of
supply arises in terms of section 12 or 13 of the Act; and

(ix) Recipient tax payer is required to declare in Column No. 12 whether the
inward supplies are inputs or input services or capital goods (including
plant and machinery).

5. Inputs/Capital goods received from Overseas or from SEZ units on a Bill of Entry

(1) Details relating to import of Goods/Capital Goods from outside India as well
as supplied by an SEZ Unit to be reported rate-wise by recipient tax payer in
Table 5.

(2) Recipient to provide for Bill of Entry information including six digits port
code and seven digits bill of entry number.
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(3) Taxable Value in Table 5 means assessable value for customs purposes on
which IGST is computed (IGST is levied on value plus specified customs
duties). In case of imports, the GSTIN would be of recipient tax payer

6. Amendments to details of inward supplies furnished in returns for earlier tax periods in Tables 3, 4 and 5 [including debit notes/credit notes issued and their subsequent amendments]

Table 6 to capture amendment of information, rate-wise, provided in earlier tax
periods in Table 3, 4 and 5 as well as original/ amended information of debit
or credit note. GSTIN not to be provided in case of export transactions.

7. Supplies received from composition taxable person and other exempt/Nil rated/Non GST supplies received

Table 7 captures information on a gross value level.

8. ISD credit received

An option similar to Table 3 is not available in case of Table 8 and the credit
as distributed by ISD (whether eligible or ineligible) will be made available to
the recipient unit and it will be required to re-determine the eligibility as well
as the amount eligible as ITC.

9. TDS and TCS Credit received

(1) TDS and TCS credit would be auto-populated in Table 9. Sales return and Net
value columns are not applicable in case of tax deducted at source in Table 9.

(2) The eligible credit from Table 3, Table 4 & Table 8 relating to inward supplies
to be populated in the Electronic Credit Ledger on submission of its return in
Form GSTR-3.

(3) Recipient can claim less ITC on an invoice depending on its use i.e. whether
for business purpose or non-business purpose.

10. Consolidated Statement of Advances paid/Advance adjusted on account of receipt of supply

Information of advance paid pertaining to reverse charge supplies and the tax
paid on it including adjustments against invoices issued should be reported in
Table 10.

11. Input Tax Credit Reversal / Reclaim

This table discusses information about Input Tax Credit (ITC) reversal or reclaim

12. Addition and reduction of amount in output tax for mismatch and other reasons

Table 12 to capture additional liability due to mismatch as well as reduction in
output liability due to rectification of mismatch on account of filing of GSTR-
3 of the immediately preceding tax period.

13. HSN summary of inward supplies

Reporting criteria of HSN will be same as reported in GSTR-1.

To know about Form GSTR 1 please check this article GSTR-1 Form
To know about Form GSTR 3b please check this article GSTR-3B Form