GSTR 2 Explained

Inward Supplies of Goods and Services (Purchases)

Key Components of GSTR 2 Return:

GSTR 2 includes the details of inward supplies of goods and services (purchases) by the taxpayer. This form is auto populated from the GSTR 1 filed by the supplier. It includes the following details,

  • Details of Inward supplies received from a registered person other than the supplies attracting reverse charge like GSTIN of supplier, invoice value, place of supply, amount of ITC available etc.
  • Inward supplies on which tax is to be paid on reverse charge.
  • Inputs or capital goods received from overseas or from SEZ units on a bill of entry.
  • Supplies received from composition taxable person and other exempt/Nil rated/Non-GST supplies received from interstate and intrastate.
  • ISD credit received, TDS/TCS credit received and consolidated statement of advance paid or adjusted on account of receipt of supply.
  • Input Tax credit reversal details, HSN summary of goods and services etc.

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GSTR 2 Return Filing

Quick GSTR 2 FAQs

1What is GSTR 2?

GSTR 2 contains invoice level inward supply information rate wise as reported by the supplier in GSTR 1. Most of the details are auto populated from the other party return.

2How can the tax payer act on the auto populated information in GSTR 2?

The taxpayer can accept, reject, modify (if information provided by supplier is incorrect) or keep the transactions pending for action (if goods or services have not received).

3Can the taxpayer add invoices if the supplier did not upload the invoice?

Yes. The taxpayer can add invoice if he is in possession of invoices and have received the goods or services.

4Who is required to file GSTR 2?

Every registered taxable person other than input service distributor/Composition taxpayer / TDS Deductor/TCS Collector (E Commerce operator) is required to file GSTR 2.

5What happens if the other party file their returns after filing of GSTR 2 by the taxpayer?

When GTSR 1 is filed after filing of GSTR2 by the counterparties, the details declared in GSTR 2 gets auto populated to GSTR 1 and the supplier is expected to take action on such details before filing of its GSTR 1.