Simplifying compliance: GSTN launches auto-drafted ITC statement GSTR-2B for July

Goods and Service Tax Network (GSTN) on Saturday launched GSTR-2B for the month of July 2020 as an auto-drafted input tax credit (ITC) statement. The launch of this GSTR-2B is expected to reduce the time taken for preparing return, minimise errors, assist reconciliation and simplify compliance relating to filing of returns.

Put simply, GSTR-2B is an auto-drafted ITC statement which will be generated for every registered person on the basis of information furnished by his suppliers in their respective GSTR-1, GSTR-5 ( non resident taxable person) and GSTR-6 (input service distributor).

It is a static statement and will be available for each month on the 12th day of the succeeding month, an official release said. The data in GSTR-2B is reported in a manner that allows taxpayers to conveniently reconcile ITC with their own books of accounts and records.

It may be recalled that the GST Council had at its meeting held on March 14, 2020 recommended the adoption and implementation of the incremental approach of linking the present system of filing of GSTR-3B and GSTR-1 and other significant changes like enhancements in GSTR-2A and its linking to GSTR-3B.

 

  

 

One such enhancement that the Council recommended was the introduction of an auto-drafted input tax credit (ITC), which would aid in assisting/determining the input tax credit that is available for every taxpayer. This is now sought to be accomplished with the launch of GSTR-2B.

Meanwhile, GSTN has clarified that GSTR-2B for the month of July 2020 has been made available on the common portal on trial basis. Since, this is the first time the statement is being introduced, taxpayers are advised to refer to GSTR-2B for the July month only for feedback purposes.

Source::: THE HINDU Business Line, dated 29/08/2020