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 Returns of Inward SuppliesThis article deals with various aspects of return of inward supplies but does not deal with matching which is dealt in a separate article on the subject.

Who are required to file :

As per section 38(2) of the CGST Act read with Returns Rules, every registered person except the following:-

i.         An Input Service Distributor.
ii.        A non-resident taxable person.
iii.       A person paying tax under the composition scheme.
iv.       A person paying tax under section 51 (TDS related provisions).
v.        A person paying tax under section 52 (TCS related provisions).

are required to furnish electronically through the Common Portal either directly or through a Facilitation Centre notified by Commissioner, in FORM GSTR-2, the details of inward supplies of taxable goods or services or both, including inward supplies of goods or services or both on which the tax is payable on reverse charge basis under this Act and inward supplies of goods or services or both taxable under the Integrated Goods and Services Tax Act or on which integrated goods and services tax is payable under section 3 of the Customs Tariff Act, 1975, and credit or debit notes received in respect of such supplies during a tax period after the tenth day but on or before the fifteenth day of the month succeeding the tax period.

The aforesaid registered person furnishing details of inward supplies is required to verify, validate, modify or delete, if required, the details relating to outward supplies and credit or debit notes communicated to him to prepare the details of his inward supplies and credit or debit notes and may include therein, the details of inward supplies and credit or debit notes received by him in respect of such supplies that have not been declared by the supplier.

The Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein. Any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.

Contents of details of inward supplies:

The details of inward supplies of goods or services or both furnished in FORM GSTR-2 shall include the following details:-

1) Invoice wise details of all inter-State and intra-State supplies received from registered persons or        unregistered persons.
2) Import of goods and services made.
3) Debit and credit notes, if any, received from supplier.

Details of input service distributors, tax deducted at source and tax collected at source in details of inward supplies
The details of invoices furnished by an Input Service Distributor in his return in FORM GSTR-6 under rule 7 shall be made available to the recipient of credit in Part B of FORM GSTR -2A electronically through the Common Portal and the said recipient may include the same in FORM GSTR-2.

The details of tax deducted at source furnished by the deductor in FORM GSTR-7 shall be made available to the deductee in Part C of FORM GSTR-2A electronically through the Common Portal and the said deductee may include the same in FORM GSTR-2.

The details of tax collected at source furnished by an e-commerce operator under section 52 in FORM GSTR-8 shall be made available to the concerned person in Part D of FORM GSTR – 2A electronically through the Common Portal and such taxable person may include the same in FORM GSTR-2.

Identification of eligible/ineligible input tax credits in details of inward supplies

The registered person shall specify the inward supplies in respect of which he is not eligible, either fully or partially, for input tax credit in FORM GSTR-2 where such eligibility can be determined at the invoice level.
The registered person shall declare the quantum of ineligible input tax credit on inward supplies which is relatable to non-taxable supplies or for purposes other than business and cannot be determined at the invoice level in FORM GSTR-2.

Communication of changes in details of inward supplies with the supplier

The details of inward supplies added, corrected or deleted by the recipient in his FORM GSTR-2 under section 38 or FORM GSTR-4 under section 39 shall be made available to the supplier electronically in FORM GSTR-1A through the Common Portal and such supplier may either accept or reject the modifications made by the recipient and FORM GSTR-1 furnished earlier by the supplier shall stand amended to the extent of modifications accepted by him.

Recommended Article: Returns of Outward Supplies-GST

ca rishabhkumarThe author is a fellow member of the Institute of Chartered Accountants of India and also a qualified Company Secretary. The author has also done DISA (ICAI), certificate on IFRS (ICAI), Certificate on Forex and Treasury Management (ICAI), Certificate on Forensic Accounting and Fraud Prevention (ICAI). The author practices as a Chartered Accountant under the name and style of Rishabh Kumar Barmecha and Associates and is an expert in auditing, financial investigation, direct and indirect taxation. The author can be reached at rishabhkumarbarmecha@gmail.com or 91 9007909221 or Twitter @CARKBarmecha.
CA Rishabh Kumar Barmecha

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