Statement of Inward Supplies :
Section 26 of the draft model bill provides for the statement of inward supplies. The statement of inward supplies is a statement that primarily determines the Input Tax Credit (ITC) eligible to be claimed by a tax payer in a given tax period. Like statement of outward supplies, even this statement is a transaction based statement. Since every
inward supply of a tax payer is an outward supply of some other tax payer, this statement can be auto drafted by the system from the statements of outward supplies filed by all the tax payers in the GST system. Based on this principle, the GSTR-2 is auto populated after the last date of filing of the statement of outward supplies based on the details of outward supplies filed on the system.
Since the GSTR-2 is a claim made by the tax payer for his ITC, although his GSTR- 2 has been auto populated, he is allowed to change them, delete them or even add his own claims based on invoices where he has received goods and / or services but, for some reason, his supplier has failed to upload it on the system.
This return form would capture the following information:
1. Basic details of the Taxpayer i.e. Name along with GSTIN
2. Period to which the Return pertains
3. Final invoice-level inward supply information pertaining to the tax period for goods and services separately
4. The information submitted in GSTR-1 by the counterparty supplier of the taxpayer will be auto populated in the concerned tables of GSTR-2. The same may be modified i.e. added or deleted by the Taxpayer while filing the GSTR-2. The recipient would be permitted to add invoices (not uploaded by the counterparty supplier) if he is in possession of invoices and has received the goods or services.
5. There will be separate tables for submitting details relating to import of Goods/Capital Goods from outside India and for the services received from outside India.
6. The details of inward supplies would be auto-populated in the ITC ledger of the taxpayer on submission of his return. The taxpayer will select the invoice details regarding the in-eligibility and eligibility of ITC in relation to these inward supplies and the quantum available in a particular tax period.
7. There will be a separate table for submitting details in relation to ITC received on an invoice on which partial credit has been availed earlier.
8. In respect of inputs, there can be two situations. If inputs are received in one lot, the ITC will be given in the return period in which the purchase is recorded in the books of accounts. In case inputs covered under one invoice are received in more than one instance/lot, as per section 16 (1) of the draft model bill, the ITC will be given in the return period in which the last purchase is recorded in the books of accounts. A note in this regard has been incorporated in the Return form for the guidance of the taxpayer.
9. There will be a separate table for submitting the details of revisions in relation to inward supply invoices pertaining to previous tax periods (including post purchase discounts received). This will include the details of Credit/Debit Note issued by the suppliers and the differential value impact and concomitant tax payable or refund/tax credit sought.
10. There will be a separate table for effecting modifications/correcting errors in the returns submitted earlier.
11. There will be a separate table for submitting details in relation to NIL rated, Exempted and Non GST inward Supplies ( Both Inter-State and Intra-State) including those received from compounding taxpayers and unregistered dealers.
12. There will be a separate table for the ISD credit received by the taxpayer.
13. There would be a separate table for TDS Credit received by the taxpayer.
Auto Population in this return from GSTR-1 will be done on or after 11thof the succeeding month. Addition or Deletion of the invoice by the taxpayer will be permitted between 11thand 15thof the succeeding month. As per section 26 (1), GSTR-2 can be filed any time after 10thand on or before 15th. Filing of GSTR-2 after 15th will attract late fee.
Based on the GSTR-2, if there are any changes as compared to what was auto generated the corresponding supplier would be allowed to change his GSTR-1 accordingly. If the GSTR-1 is changed by the supplier by 17ththe same will be taken for generation of the monthly return. Adjustments would be permitted on 16thand 17thof the succeeding month.