What is GSTR-2A?

GSTR-2A is a purchase-related tax return that is automatically generated for each business by the GSTN portal. It is based on the details of GSTR 1, details operator from GSTR 5 (supplied by non-resident taxable person), GSTR 6 (ISD), GSTR 7 (TDS Deduction) and GSTR 8 (collected by TCS e-commerce) of your suppliers. You can verify and amend this return before you file it in the GSTN portal as your GSTR-2.

There are two ways by which a registered taxable person can view the data generated by GSTR 2A return. The details can directly be viewed on the GST portal by login and accessing the return filing segment which stacks in other returns of the taxable person or can download GSTR 2A file and view it in the offline utility tool.  

Difference between GSTR 2 and GSTR 2A

GSTR-2 and GSTR-2A are two different yet related GST returns. GSTR-2A Form makes it easier for users to file GSTR-2 by providing most details in a ready-to-fill format. GSTR-2A fetches the details of the outward supplies as mentioned by your supplier in their returns, which you can use to file your own GSTR-2. Basically, GSTR-2 will be a replica of the GSTR-2A, but it will be editable so you can check the details and edit the same or change them, in addition to the invoices related to those supplies. The user, therefore, need not upload all the inward supplies details manually. The GSTR-2A Form will also include all the inward supplies invoices uploaded by your supplier, which you can check, modify or delete, to be further added to your GSTR-2 Form. Be sure to include only the correct information in your returns, as your input tax credit eligibility will be determined based on the information provided by you in your GSTR-2 Form.

Importance of GST Reconciliation on a regular basis. 

ITC Reconciliation is a must-do exercise for every business to increase their profitability. Under new GST returns, the taxpayers will only be able to claim ITC if the particular invoice is present in the GSTR-2A or supplier’s data. 

This requirement forces the businesses to reconcile and claim ITC correctly. In case the vendor has declared his GST liability and credit has not been availed by the purchaser in his GST returns. So, to not to lose the claim of ITC, the data should be reconciled on a regular basis. This reconciliation process will ensure no ITC loss on any invoices and helps in avoiding any duplication.

It is mandatory to file a GST Return for each and every entity registered under the GST Act. Even in case where there are no inward supplies during the tax period, NIL return for that period is required to be filed. In case of failure to file the return within due period, the taxpayer is penalized with the late fees of INR 100 per day up to a maximum limit of INR 5,000.