Saturday, June 18, 2022

Why Same Invoices Appearing in April and May 2022 GSTR 2B?

Why Same Invoices Appearing in April and May 2022 GSTR 2B?

Last month in May 2022, CBIC shared on twitter regarding problems in generation of GSTR 2B for the month of April 2022.

Technical team fixed this issue and finally GSTR 2B was generated and taxpayers were able to file GSTR 3b. Due to technical issues faced by the taxpayers, last date for filing GSTR 3b for the month April 2022 was extended up to 24 May 2022.

Although the problem for April 2022 was solved, it created a new problem for the month of May 2022. This month some taxpayers have reported that a few invoices reflected in the May month GSTR 2B are same as invoices reflected in April month GSTR 2B. So how did this happen? We are going to explore what might have gone wrong.

The Reason

Let us first understand how GSTR 2B is generated and how it is different from GSTR 2A. GSTR 2B is an autogenerated return that fetches the invoices from GSTR-1 of your suppliers and populate it in GSTR 2B. If you know about GSTR 2A, the same mechanism is also used for generation of GSTR 2A. But there is a major difference between GSTR 2A and GSTR 2B. See the table below to understand the basic difference between how GSTR 2A and GSTR 2B are generated.

GSTR 2AGSTR 2B
an autogenerated return that fetches the invoices from GSTR-1 of the suppliersan autogenerated return that fetches the invoices from GSTR-1 of the suppliers
uses the GSTR-1 filed for the month for generation of GSTR-2Auses the GSTR-1 filed during* the month for generation of GSTR-2B
if a supplier filed Nov 2021 month Return during Jan 2022, the invoice will go to Nov 2021 GSTR 2Aif a supplier filed Nov 2021 month Return during Jan 2022, the invoice will go to Jan 2022 GSTR 2B
dynamic return can change each time its generatedstatic return once generated, does not change

*[during the month] means invoices from GSTR-1s filed between 12th of said month and 11th of next month (due date of filing GSTR-1), and GSTR 2B is generated afterwards every month. For example, for April 2022 GSTR 2B, invoices from GSTR-1s filed between 12th April 2022 to 11th May 2022 were to be considered. And GSTR-2B was supposed to be generated on 12th May 2022.

Now see what happens when GSTR-2B in generated late, let's say on 17th of May 2022. It considers invoices from GSTR-1s filed between 12th April 2022 to 16th May 2022.

But at the time of generation of May 2022 GSTR-2B, it takes invoices from GSTR-1s filed between 12th May and 11th June 2022 as usual.

You can easily see, there is an overlap here, so in that case invoices from GSTR-1s lately filed between 12th May and 16th May will appear in April GSTR-2B as well as May GSTR-2B. And this is what might have happened.

GSTN has suggested taxpayers to verify the data themselves and avoid taking ITC on the same invoices twice. If as a taxpayer, you have enormous number of invoices populated in GSTR 2B and finding it difficult to match the invoices, you can use GST Doctor ITC Matching Software for free to match April 2022 GSTR-2B and May 2022 GSTR-2B. Just tick the "use pivot option" in this case.

Disclaimer: The article written above is merely a speculation of what might have happened. It is in no way an official statement.

Update: The GSTN has issued an advisory Availing ITC as per law and GSTR2B on 18/06/2022 in relation to duplicate entries in GSTR2B stating that it has been fixed and correct GSTR-2B has been generated. Taxpayers are advised to check and ensure that the value of ITC they are availing is correct as per the law while filing GSTR3B.