GSTR 2B input tax issue: A new advisory by GSTN on how to fix it for FY 2023-24
GST registered taxpayers now have only 12 days to fix issues with their supplier's invoice and upload these on the GST portal. This is because if invoices are not uploaded on the GST portal on or before November 30, 2024, for FY 2023-24 then buyers will not be able to claim input tax credit (ITC). Once the supplier uploads the invoice and files GSTR 1 the buyer's GSTR 2B gets auto populated with the corresponding amount of input tax credit. However, many people were complaining about their GSTR-2B missing details of input tax credit or not getting generated at all.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} Taking cognizance of the matter, the Goods and Services Tax Network (GSTN) with an aim to help taxpayers who have not yet received GSTR 2B (input tax credit statement) released an advisory explaining why this might be. This advisory helps you in understanding it better and take up the issue with the appropriate supplier or others.
GSTN advisory about GSTR 2B (input tax credit statement) not getting generated on November 14, 2024
GSTN in an advisory dated November 16, 2024 explains the possible reasons behind GSTR 2B not being generated. It said "It has been reported by few taxpayers that their GSTR-2B for October-2024 period has not been generated on 14th November, 2024. In this regard, it is to be informed that as per the design of IMS, GSTR-2B will not be generated by the system in below scenarios:In case the taxpayer has opted for QRMP scheme (Quarterly filers), GSTR-2B will not be generated for the first and second month of the quarter. Ex. For quarter Oct-Dec, 2024, the quarterly taxpayer will get GSTR-2B for December-2024 period only and not for October-2024 & November-2024.In case the taxpayer has not filed their previous period GSTR-3B, GSTR-2B will not be generated by the system. Such taxpayers need to file their pending GSTR-3B in order to generate GSTR-2B on demand. For example, if the taxpayer has not filed GSTR-3B for September-2024, their GSTR-2B for October-2024 will not be generated. Once the taxpayer files their GSTR-3B for September-2024, they will be able to generate their GSTR-2B for October-2024 by clicking the "Compute GSTR-2B (OCT 2024)" button on the IMS dashboard."
Without GSTR-2B buyers will not be able to claim input tax credit
Chartered Accountant Akhil Pachori says that buyers will not be able to claim input tax credit for pending invoices of FY 2023-24 if the supplier has not filed GSTR 1. "This is because from January 2022, input tax credit (ITC) can only be claimed if the Invoices are flowing in GSTR 2B from GSTR-1 of Supplier. GSTR-2B will not have invoices if the supplier has not filed GSTR-1. Based on ITC appearing in GSTR 2B, the buyer will file GSTR 3B. This is how the system is interconnected."
Web Development
Mastering Full Stack Development: From Frontend to Backend Excellence
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Office Productivity
Zero to Hero in Microsoft Excel: Complete Excel guide 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Digital marketing - Wordpress Website Development
By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert
Marketing
Modern Marketing Masterclass by Seth Godin
By - Seth Godin, Former dot com Business Executive and Best Selling Author
Artificial Intelligence(AI)
ChatGPT Mastery from Zero to Hero: The Complete AI Course
By - Metla Sudha Sekhar, IT Specialist and Developer
Web Development
JavaScript Essentials: Unlock AI-Driven Insights with ChatGPT
By - Metla Sudha Sekhar, IT Specialist and Developer
Leadership
Validating Your Startup Idea: Steps to Ensure Market Fit
By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Leadership
Boosting Startup Revenue with 6 AI-Powered Sales Automation Techniques
By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Web Development
A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Web Development
Advanced C++ Mastery: OOPs and Template Techniques
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
AI and Generative AI for Finance
By - Hariom Tatsat, Vice President- Quantitative Analytics at Barclays
Artificial Intelligence(AI)
Tabnine AI Masterclass: Optimize Your Coding Efficiency
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
A2Z Of Finance: Finance Beginner Course
By - elearnmarkets, Financial Education by StockEdge
Finance
Startup Fundraising: Essential Tactics for Securing Capital
By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Web Development
Intermediate Java Mastery: Method, Collections, and Beyond
By - Metla Sudha Sekhar, IT Specialist and Developer
Strategy
ESG and Business Sustainability Strategy
By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader
Data Science
SQL Server Bootcamp 2024: Transform from Beginner to Pro
By - Metla Sudha Sekhar, IT Specialist and Developer
Leadership
Crafting a Powerful Startup Value Proposition
By - Dr. Anu Khanchandani, Startup Coach with more than 25 years of experience
Data Science
SQL for Data Science along with Data Analytics and Data Visualization
By - Metla Sudha Sekhar, IT Specialist and Developer
Office Productivity
Microsoft Word Mastery: From Beginner to Expert
By - CA Raj K Agrawal, Chartered Accountant
Finance
Financial Literacy for Non-Finance Executives
By - CA Raja, Chartered Accountant | Financial Management Educator | Former AVP - Credit, SBI
Pachori further explains the concept with an example.
"For example, a buyer purchased 10 crore worth of goods at 18% GST from a seller. So, the buyer will pay 18% i.e. Rs 1.8 Crore to the seller and then claim this amount as input tax credit. Now suppose the buyer sells this good to another business customer at 18% GST rate and at Rs 12 crore price. So, the buyer's output tax liability will be Rs 2.16 Cr (18% of 12 crore). So now the buyer will adjust Rs 1.80 Cr which was his input tax credit with Rs 2.16 cr which is his output tax liability. A problem will arise when the buyer is denied this Rs 1.80 Cr input tax credit as his GSTR 2B does not show this detail in case of default of his supplier in filing GSTR-1. The buyer in this case will have to pay Rs 2.16 Cr output liability of GST in full using cash ledger and then later get the issue rectified with the seller and claim the pending input tax credit in the coming month GSTR-3B. This type of situation causes significant working capital issues for buyers as seen from the example above.
If the buyer could have claimed the Rs 1.80 Cr input tax credit, his output tax liability would have been Rs 2.16 Cr - 1.80 Cr = Rs 36 lakh instead of 2.16 Cr."
Solution to the problem of pending input tax credit
According to Chartered Accountant Bimal Jain one possible solution to claim pending input tax credit is to use the recompute option on the IMS portal. Jain says that at first the buyer must ask the supplier to upload the GSTR 1 on the portal. If this activity is done on or before November 30, 2024 then the buyer must accept the invoice on the IMS portal and then press the 'recompute' button.Jain says "The GSTN on November 16, 2024 advised taxpayers to recompute GSTR-2B if discrepancies arise between GSTR-2B and GSTR-3B or if GSTR-2B isn't generated. Firstly, access the IMS dashboard, then take action on records to enable re-computation, click 'Compute GSTR-2B (OCT 2024)' and updated values will reflect in GSTR-2B and GSTR-3B. In case you find any gap in the 2B data and 3B data flowing from IMS or if 2B couldn't be generated at all then follow the below steps:
i. Go to the IMS dashboard, take any action on any records to enable re-computation.
ii. Click Compute GSTR-2B (OCT 2024) button to recompute GSTR-2B.
iii. Updated values will reflect in GSTR-2B and will auto-populate in GSTR-3B."
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
