Understanding GSTR-2 : Part 8
In our previous blog ‘How to File GSTR-2 PART-7’, we discussed about furnishing supplies received from composition taxable persons and other exempt/Nil rated/Non GST supplies received, during the GSTR-2 filing process. In this blog, we will discuss about:
- ITC received through ISD
- TDS and TCS credit received
GSTR-2 Filing: Details of Credit received from ISD
Based on the GSTR-6, the above details will be auto-populated in GSTR-2A but the options such as Accept, Modify, Reject and Pending as available in Table 3, will not be available for table 8 of GSTR-2. On the basis of the credit distributed by ISD, made available in GSTR-2A, the recipient has to re-determine the eligibility as well as the amount of ITC eligible and accordingly the details needs to be captured manually in the GST portal. We hope, once the GSTR-6 and ISD credit details in GSTR-2 are activated in GST portal, the options similar to table 3 of GSTR-2 will be made available.
To know more about the ISD and the applicable conditions, please read our blog Understanding Input Service Distributor (ISD) in GST and ISD: How to Distribute Input Tax Credit.
The table 8 is categorized into 2 parts, 8A and 8B.
In table 8A, you need to furnish the details of ISD tax invoice from which the ISD credit is received by you along with the amount of ITC. The following details needs to be entered:
|1||GSTIN of ISD needs to be mentioned|
|2 and 3||You need to mention the invoice no and date of ISD tax invoice.|
|4 to 7||Mention the amount of tax credit received against each of tax head|
|8 to 11||Amount of ITC from you are eligible to claim.|
In 8B, if there are any credit notes issued for reduction of ISD, you need to furnish the details of credit notes. The details required to be furnished is similar to 8A.
GSTR-2 Filing: Details of TDS and TCS credit received.
In the above table, details of TDS and TCS credit received needs to be entered. This is categorized into 2 parts, 9A and 9B.
9A: TDS credit received
Under GST, certain notified persons such as department or an establishment of the Central Government or State Government, Government agencies and Local Authority should deduct TDS @1% of the payment made to the supplier (the deductee) of taxable goods or services or both, where the total value of such supplies, under a contract, exceeds Rs 2.5 Lakhs (excluding the amount of Central tax, State tax, Union Territory tax, Integrated tax and cess indicated in the invoice). This is applicable only if the supplier and the recipient are in the same State.
The deductor needs to furnish the details of TDS deducted in Form GSTR-7 within 10th of subsequent month.
If you have made any outward supplies to above mentioned persons, the amount which was withheld will be auto-populated in 9A of GSTR-2 based on the GSTR-7. The following details will be captured:
|1||GSTIN of deductor|
|2||Gross Value of outward supplies made to deductor|
|3 and 4||Not applicable for TDS Credit.|
|5 to 7||Amount of tax withheld by the deductor will be captured under respective tax head|
9B: TCS credit received
Every e-commerce operator should collect tax @ 2% on the net value of taxable supplies made through their platform. On 10th of subsequent month, an e-commerce operator has to furnish Form GSTR-8 with amount of TCS collected from their supplier. To know more e-commerce operator under GST, please read Provisions in GST with Respect to E-Commerce.
Based on GSTR-8 submitted by your e-commerce operator, the details will be auto-populated in 9B of GSTR-2. The following details will be captured:
|1||GSTIN of e-commerce operator|
|2||Gross Value of outward supplies made to deductor|
|3||Value of Sales returns|
|5||Net value after reducing sales return from gross value|
|5 to 7||Amount of tax collected by your e-commerce operator will be captured under respective tax head|
Points to be noted to update ISD, TDS and TCS credit details during GSTR-2 filing:
- Currently, ISD, TDS and TCS is not activated in GST portal.
- The due date to file GSTR-6 by ISD for July, 2017 is extended till 13th October, 2017 and still the option to file GSTR-6 is not activated. It looks like table 8 -Details of Credit received from ISD could be activated in GSTR-2, once GSTR-6 filing facility is made available.
- TDS and TCS provisions are deferred currently. This means, TDS and TCS cannot be deducted/collected and accordingly, it is not applicable for July, 2017 returns.
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Author: Yarab AYarab is associated with Tally since 2012. In his 7+ years of experience, he has built his expertise in the field of Accounting, Inventory, Compliance and software product for the diverse industry segment. Being a member of ‘Centre of Excellence’ team, he has conducted several knowledge sharing sessions on GST and has written 200+ blogs and articles on GST, UAE VAT, Saudi VAT, Bahrain VAT, iTax in Kenya and Business efficiency.
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