The objective of introduction of Goods and Services Tax (GST) was to simplify the process of indirect taxation. However, despite the relative simplification from the previous tax regime, GST is still in its nascent stages. In other words, there are still some cloudy areas in the GST regime.
Department is continuously making changes in the process of allowing the eligible credit (hereinafter referred as “ITC”) to the eligible taxpayers. In the process of the same, firstly, the department had introduced GSTR 2A which provides dynamic data in relation to invoices uploaded by the concerned suppliers updated on regular intervals, for matching of ITC. But there are some issues related to GSTR-2A like tedious reconciliation, duplication in claiming ITC etc.

Then with some further modifications, the Government introduced Form GSTR 2B with static data vide Notification no. 82-2020 dated 10th November, 2020.



CONCLUSION
GSTR 2B is expected to give a bird’s eye view to the registered person as to ITC available for claiming in GSTR 3B and ITC not available with specified parameters. Due to static nature it also ensures no ITC is availed twice, no ineligible ITC is availed, and no ITC is missed out on; which would bring cost efficiencies in some manner & also reduce cash outflow of company.
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Posted by:
CA Tarun Kapoor
AKGVG & Associates