GSTR-2B (Input tax credit statement) to be uploaded 2 days late on January 16, 2025 for December 2025 tax period

2 days delay in input tax credit: Buyers will have to wait longer for GSTR-2B statement; use recompute option in this case

The Goods and Services Tax Network (GSTN) has informed that GSTR-2B for December 2024 tax period will be generated after 2 days from the originally scheduled day of January 14, since the deadline for filing GSTR-1 was extended by 2 days. GSTN informed that GSTR-2B will now be generated on January 16, 2025 for the December 2024 tax period.

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GSTR-2B, an auto-populated statement, is generated based on the outward supply details uploaded by suppliers in their GSTR-1. Experts say GSTR-2B is a critical document that allows buyers to claim Input Tax Credit (ITC). Unless the suppliers updates it accurately the buyer can not claim input tax credit.

What did GSTN say?

GSTN said the draft GSTR-2B form will be automatically generated on January 16, 2025. However, if the supplier makes any changes through the invoice management system (IMS) after the buyer has generated his GSTR-2B then the buyer needs to use the ‘recompute’ option to generate the updated GSTR-2B.

GSTN in an advisory dated January 14, 2025 said, “In light of the extended due dates for filing GSTR-1 and GSTR-3B returns for the month of December 2024 (Quarter Oct-Dec 2024), the Draft GSTR-2B for the month of December 2024 (Quarter Oct-Dec 2024) will now be generated on 16th January 2025 in accordance with the rule 60 of CGST Rules, 2017. We would like to remind you that you can recompute your Draft GSTR-2B if any action is taken in IMS after the generation of the same GSTR-2B on or after 16th Jan 2025.”

Relief for GST taxpayers: Deadline for GSTR-1 and GSTR-3B extended after GSTN reported technical issues with the portal

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When do buyers need to use the recompute feature?

Chartered Accountant Deep Koradia, says, “Once the sellers upload the invoices on the GSTR-1, buyers have three options on IMS Portal-accept, reject or keep it pending. In this new advisory by GSTN, buyers have been asked to use the ‘recompute’ feature if they have rejected the invoice after GSTR-2B has been generated on or after January 16, 2025 for the Decemeber 2024 tax period."

Recompute feature on the IMS portal can be used to claim lesser input tax credit by eliminating certain purchases but new purchases can’t be added to increase input tax credit.

Koradia says: "It is noteworthy that once a GSTR-2B has been generated, no buyer can accept any new invoices for that month. This means upward revision of purchases can’t happen but downward revision can happen. The primary reason for this advisory is now GSTR-2B will generate late as the GSTR-1 deadline had to be extended due to persistent technical issues with the GST portal.”

New GSTN advisory: GST registered suppliers must take note of these new changes made in GSTR-1 from January 2025

Why is GSTR-2B generating 2 days late?

If you recall the deadline to generate GSTR-1 was January 11, 2025 for the December 2024 tax period. However due to technical issues on the GST portal, the deadline had to be extended to January 13, 2025.

As per Chartered Accountant Ashish Niraj, Partner, A S N & Company, "Since the GSTR-1 deadline had to be extended as the portal was having technical issues, now the GST department will have the outward supply dates and details by end of day on January 15, 2025. Hence the reason why GSTR-2B will be made available to buyers from January 16, 2025 now. Data from GSTR-1 filed by suppliers is used to auto populate the GSTR-2B form.
So the new advisory of GSTR 2B generation on 16th was fully expected.”

Niraj says ideally GSTR-1 is to be filed on or before the 11th (monthly) or 13th (quarterly) day of the month. Once GSTR-1 is filed on these dates, the GSTR-2B is generated on the 14th day of the month. After this GSTR-3B is generated by the 20th, giving 6 days time to buyers to reconcile their purchases with input tax credit.

Chartered Accountant Pradeep Reddy, Founder Unnathi Partners, Bangalore, says, "The due dates for filing GSTR-1 and GSTR-3B for December 2024 have been extended as per Notifications No. 01/2025 and 02/2025, giving taxpayers some much-needed relief. Since the deadline for filing GSTR-1 has been pushed, actions in the Invoice Management System (IMS), where buyers can accept or reject invoices issued by their suppliers, can only be done after the extended date. To keep things in sync, the GST portal will now generate GSTR-2B on January 16, 2025, instead of the usual January 14, 2025. Accepted invoices in IMS will flow into GSTR-2B, which helps determine input tax credit eligibility in GSTR-3B. This update ensures better accuracy in credit claims while keeping the process clear for taxpayers."

Chartered Accountant Hunny Munjal says, "Delays in filing GSTR-1 can create a significant ripple effect throughout the GST compliance framework. GSTR-1 serves as the foundation for generating GSTR-2B, a critical document that allows buyers to claim Input Tax Credit (ITC). Under Section 16 of the CGST Act, 2017, ITC claims are contingent upon the matching of purchase data with the information available in GSTR-2B."

Munjal says, "GSTR-2B, an auto-populated statement, is generated based on the outward supply details uploaded by suppliers in their GSTR-1. The GSTN system consolidates this data and makes it available to recipients on the 14th of every month. Recipients then reconcile this data with their purchase records to claim ITC in their GSTR-3B returns, which are typically due by the 20th. This process provides a crucial six-day window for reconciliation."

This story originally appeared on: India Times - Author:Faqs of Insurances