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GSTR 2B Reconciliation

What is GSTR 2B Reconciliation?

GSTR-2B is a monthly auto-drafted ITC (Input Tax Credit) statement for regular taxpayers (whether or not they have opted into the QRMP programme).

The statement began with the August 2020 tax period, and the government introduced it on the GST portal. You can generate it on the 12th of every month. It is static, meaning it does not alter depending on the vendors’ actions.

Even though GSTR-2B depends on GSTR-1, GSTR-5, GSTR-6, and the ICEGATE system (Indian Customs Electronic Gateway), it does not include TDS and TCS information.

Points to Remember While Preparing GSTR 2B Reconciliation:

  1. You can access and produce GSTR2B monthly, based on your supplier-provided GSTR-1GSTR-5, and GSTR-6 and find your eligibility for ITC in the statement.
  2. You must reconcile GSTR 2B with your books of accounts before filing GSTR 3B to avoid any notices from the GST department in case of any mismatch.
  3. Perform GSTR 2B reconciliations before filing GST returns, failing which you will have to:
    1. Pay interest and a penalty to the government in the event of excess availment of ITC.
    2. Not claim eligible ITC within the prescribed timeline in case of short/less availment of ITC.
  4. The data should not be directly picked from GSTR-2B and filed in GSTR-3B. You should check the invoice date, so credit is not taken twice or missed.
  5. The reverse charge credit on the import of services is not part of this statement, and you must enter it in Table 4(A) (2) of FORM GSTR-3B.