Match the following: 1. GST paid on interstate purchases 2. GST pard on intra state purchases 3. GSTR 1 4. GSTR 2
Answers
Explanation:
1. What is GSTR-2?
Every registered taxable person is required to give details of Inward Supply, i.e., purchases for a tax period in GSTR-2.
2. Why is GSTR-2 important?
GSTR-2 contains details of all the purchases transactions of a registered dealer for a month. It will also include purchases on which reverse charge applies. The GSTR-2 filed by a registered dealer is used by the government to check with the sellers’ GSTR-1 for buyer-seller reconciliation.
3. What is buyer-seller reconciliation?
Buyer-seller reconciliation or invoice matching or is a process of matching taxable sales by the seller with the taxable purchases of the buyer. It is vital because ITC on purchases will only be available if the details of purchases filed in GSTR-2 return of buyer matches with the details of sales filed in GSTR-1 of the seller. For example, Ajay buys 100 pens worth Rs. 500 from Vijay Stationery. Vijay Stationery must show Rs. 500 sales in his GSTR-1. Ajay must show the same Rs. 500 purchase in GSTR-2 to claim ITC. Unless the amounts match, Ajay will not be able to claim ITC. Note: Most of the headings under GSTR-2 are auto-populated from counter-party GST return so it will involve minimal time.
4. When is GSTR 2 due date?
As per the Act: GSTR-2 due date for Filing GSTR-2 is 15th of next month. There is a 5-day gap between GSTR-1 & GSTR-2 filing to correct any errors and discrepancies. For business’ with turnover less than 1.5 crores, quarterly returns are applicable whose due dates will be announced later.