The Most Ultimate GSTR-2A Reconciliation FAQ Guide you will ever need

Introduction

 

Form GSTR-2A is not new in the GST Regime anymore and businesses & tax professionals are well aware of the details of the form but there is more to it than just details.

 

Form GSTR-2A is a highly tricky form that consists of very small details that are easy to miss & are yet crucial for businesses & accountants.

 

Which is why, we have come up with a series of Frequently Asked Questions about form GSTR-2A that will consist the major & minor details of the Form for a better & thorough understanding of the concept.

 

Towards the end of the blog we also talk about the best GSTR-2A Reconciliation Software.

 

1. What is Form GSTR-2A under GST?

Form GSTR-2A is the draft return of inward supplies for the recipient of the goods & services. This draft is generated by the system based on all the suppliers’ outward returns or GSTR-1s. In other words it is an auto generated draft of the purchase data based on the sales returns as declared by the suppliers of the supplies in a tax period. It consists of all the details of all sorts of purchases based on Forms GSTR-1, GSTR-5, GSTR-6, GSTR-7, & GSTR-8 filed by the suppliers.

2. Who needs to File Form GSTR-2A?

Nobody needs to file form GSTR-2A as the form auto-populates form the GSTN system based on the suppliers’ sales return forms for every tax period.

3. When To File Form GSTR-2A?

Form GSTR-2A auto-populates every month as the suppliers start filing their Sales Returns. GSTR-2A is available to the recipients on the GST Portal from where you can view & download the file anytime you want. The due date of the same is till the 11^th of the subsequent month.

4. What Details does Form GSTR-2A Consists?

Form GSTR-2A contains the details of the following return forms, filed by the respective taxpayers-

Part-A

• Normal Registered Seller : GSTR-1
• Non-Resident : GSTR-5

Part-B

• Input Service Distributor : GSTR-6

Part-C

• TDS Deductors : GSTR-7
• Ecommerce / Tax Collector : GSTR-8

Part-D

• auto-populated based on ICEGATE Portal of Indian Customs

 

5. What is the Role of Form GSTR-2A in GSTR filings & Tax payment?

GSTR-2A plays a very vital role in Filing the GST returns as well as in determining the tax amounts & Input Tax Credit values of the returns. A recipient receives the GSTR-2A based on the supplier’s outward returns so they can determine the amount of tax that they have paid in that particular tax period. Based on this the recipients can claim the Input Tax Credit which will reduce their outward tax liabilities as they can adjust the tax paid with the tax due.

So Form GSTR-2A is essential for businesses due to its monetary & accounting impacts.

6. Can I amend the Form GSTR-2A?

No, there is no way a recipient can amend Form GSTR-2A. Form GSTR-2A can be changed or updated based on the suppliers’ changes in their GSTR-1. Meaning only the supplier can make changes to GSTR-2A by making changes to GSTR-1. So for any changes or discrepancies recipients must coordinate with the suppliers.

7. What is the difference between Form GSTR-2A & Form GSTR-2B?

The most major difference between GSTR-2A & GSTR-2B is that GSTR-2B will remain constant for a tax period, meaning even if the supplier makes changes to it’s GSTR-1, GSTR-2B will remain constant & the changes will reflect in the next tax period.

GSTR-2A is the purchase return of the recipient, whereas GSTR-2B is the Summary of all ITC both eligible & ineligibly, to make ITC accounting & claiming more simple & accurate.

8. Can I Download, keep & use the Form GSTR-2A for a tax period?

Yes, you can & you must download the Form GSTR-2A & keep the same for your reference & for accounting purposes. GSTR-2A Reconciliation is the next step where you will find the use of GSTR-2A to calculate the right amount of tax liability & Input Tax Credit. You can download the Form GSTR-2A from the GSTR Portal as follows-

Login to the GST Portal  > on the Return Dashboard > select Financial Year & month > then click on ‘Search’.

You can download the ‘Auto Drafted Details (For view only) GSTR-2A’ both in Excel & JSON format for that tax period.

9. What happens if there is data missing in Form GSTR-2A from the supplier’s end?

If any data is missing GSTR-2A from the suppliers’ end then you will have to take constant follow-ups & insist to the suppliers to furnish the missing or incorrect data before the end of the tax period. Vendor Communication is the only way as the recipient himself cannot make any changes to the Form.

10. Are there any recent changes that have been made to GSTR-2A? If Yes, what are they?

The Government has recently made an array of changes to Form GSTR-2A, the same are mentioned below-

Changes Made to Form GSTR-2A

Table 3: Inward supplies received from a registered person including supplies attracting reverse charge

Table 4: Amendment to inward supplies received from a registered person including supplies reverse charge (Amendment to 3).

Table 5: Debit / credit notes received during current period Table 6: Amendments to Debit / credit notes (Amendment to 5).

Table 7: ISD Credits received. Table 8: Amendment to ISD Credits details.

Table 9: TDS and TCS Credits (including amendments thereof) received

New Table 11: Import of goods from overseas on bill of entry (including amendments thereof)

New Table 12: Inward supplies of goods received from SEZ units / developers on bill of entry (including amendments thereof)

11. Please Explain the different parts of the Form GSTR-2A?

Here is a brief explanation of the Parts of Form GSTR-2A-

Part-A

Details Content

Will Contain the purchase details of the recipient as per the sales returns of the following-

• Normal Registered Seller : GSTR-1
• Non-Resident : GSTR-5

Part-B

Details Content

Will Contain the detail of the ISD Credits Received by the recipient as per the-

• Input Service Distributor : GSTR-6

Part-C

Details Content

Contains the TDS TCS Credit Receipts as per-

• TDS Deductors : GSTR-7
• Ecommerce / Tax Collector : GSTR-8

Part-D

Details Content

Will Contain the detail of Import of Goods as per ICEGATE & Customs

• Auto-populated based on ICEGATE Portal of Indian Customs-

 

12. What happens if the supplier files their GSTR-1 after the recipient has filed their returns?

In this case, the details declared by the supplier will be visible in the recipient’s GSTR-2A in the next tax period.

13. What is GSTR-2A Reconciliation?

GSTR-2A Reconciliation is the reconciliation of the company’s Purchase Books with the Form GSTR-2A to identify if there are any missing or incorrect data as per the supplier’s GSTR-1 sales returns. In the case of discrepancies, recipients can reach out to the supplier & demand an amend. This will help the recipient make their return filing more accurate & will thus impact the suppliers’ filing as well. Accurate reconciliation will help the recipients to calculate the right amount of tax liabilities & claim 100% of the Input Tax Credits.

14. What Role does GSTR-2A Reconciliation plays in GST & how is it important?

GSTR 2A reconciliation software as mentioned above plays a very vital role in the business & in business taxation that is GST. It helps the accounts reckon the errors & mistakes in the monthly filing which will impact the annual filings as well. Additionally, the monetary impact of GSTR-2A Reconciliation cannot be ignored s it helps in calculating the right amount of ITC.

These may seem very simple reasons to read but in the practical application, there are more errors than you can think & thus more loss.

To make the process more sophisticated & precise GSTR-2A Reconciliation is a highly required process.

GSTR-2A Reconciliation is the basis for Annual Reconciliation as well which makes it more important as the annual reconciliation must be accurate because it cannot be amended.

15. How to perform effective GSTR-2A Reconciliation to Claim 100% ITC? Which is the best GST Reconciliation Tool?

You can reconcile the GSTR-2A & the Purchase data accurately & very quickly with GSTHERO Advanced GSTR-2A Reconciliation Tool

This Cloud-based Solution is packed with features to deliver the best, most accurate & fastest results.

You can calculate the precise amount of ITC & Provisional Credit through the best reconciliation with GSTHero.

GSTERO is stacked with features to help the users reduce their manual input & time, while also increasing the productivity & accuracy to another level.

 

Here is why GSTHERO is the Best solution for GSTR-2A Reconciliation-

1. Download GSTR-2A in a few seconds
2. Store your e-Invoices for 8+ Years on GSTHero
3. Advance Reconciliation with data configuration options
4. Integration with top ERPs such as Tally, SAP, Marg, Oracle, Microsoft, etc.
5. Desktop as well as Cloud-based Solution for Business Continuity
6. Generate, Cancel, Edit, & Manage e-Invoices in the same dashboard
7. Generate e-Way Bills along with e-Invoices
8. Saves time & effort to enhance staff productivity.
9. Auto-update the GST defaulting suppliers