Furnishing Details of Inward Supplies (Section 38 GST)

Furnishing the Details of Inward Supplies (Section 38 GST Act) : Section 38 deals with the Furnishing Details of Inward Supplies. The Following article is an detailed Explanation of Who is required to furnish details of inward supplies (Section38(2)), What is the form for submission of details of inward supplies, What is the due date of submission of GSTR-2, What kind of details of inward supplies are required to be furnished in GSTR-2, Communication of details of GSTR-1 to the recipient of supply and Acceptance/rejection of modifications made by recipient by supplier in GSTR-1A etc.

Who is Required to furnish details of inward supplies Section 38(2)

The details of inward supplies (see definition) of both goods and services and credit or debit notes received are required to be furnished by every registered person except the following:

  • ISD
  • NRTP
  • composition taxpayer
  • person deducting tax at source
  • ECO (not being an agent)
  • supplier of OIDAR services

Thus, the registered persons who file details of outward supplies are also required to file the details of inward supplies.

Persons required to file details of outward supplies = Persons required to file details of inward supplies

Form for submission of details of inward supplies

What is the form for submission of details of inward supplies? [Section 38(2) read with rule 60(1) of CGST Rules]: The details of inward supplies are required to be furnished, electronically, in Form GSTR-2. Such details can be furnished through the Common Portal, either directly or from a notified Facilitation Centre.

Due date of submission of GSTR-2

GSTR-2 for a particular month is filed after the 10th day but on or before the 15th day of the immediately succeeding month.

The due date of filing GSTR-2 may be extended by the Commissioner/Commissioner of State GST/Commissioner of UTGST for a class of taxable persons by way of a notification.

Details of inward supplies are required to be furnished in GSTR-2

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

  1. invoice wise details of all inter-State and intra-State supplies received from registered persons or unregistered persons including inward supplies taxable under reverse charge;
  2. import of goods and services made; and
  3. debit and credit notes, if any, received by the registered person from suppliers in respect of above supplies

Communication of details of GSTR-1 to the recipient of supply

Auto-population of details of outward supplies

Auto-population of details of outward supplies filed by supplier as inward supplies of recipient in GSTR-2A [Sub-rules (1), (4A), (5), (6) and (7) of rule 60 of CGST Rules]

After the supplier files GSTR-1, the details of outward supply of such supplier are auto populated in Part A of Form GSTR 2A of the recipient(s) of said supplies, after 10th day of the month succeeding the month for which the details are being filed.

The details of invoices furnished by a NRTP in Form GSTR-5 are also made available to the recipient in auto populated manner in Part A of GSTR-2A.

The details of credit furnished by an ISD in GSTR-6 is made available to the recipient of credit in Part B of GSTR-2A. The details of tax deducted at source furnished by a deductor in GSTR-7 and tax collected at source furnished by an e-commerce operator in GSTR-8 are made available to the deductee and concerned person in Part C of Form GSTR-2A.

Verification/ validation/ modification/ deletion of details by recipient

Verification/ validation/ modification/ deletion of details by recipient in GSTR-2A [Section 38(1) read with rule 60(1)]

The recipient then verifies, validates, modifies or if required, deletes the details relating to outward supplies, debit and credit notes communicated to him in GSTR 2A, and prepares details of his inward supplies, credit notes, debit notes (including therein even those details which have not been declared by the supplier in his GSTR-1) in GSTR-2.

In fact, the auto-populated particulars mentioned in GSTR-2A to the extent they are accepted/modified automatically become part of GSTR-2.

Acceptance/rejection of modifications made by recipient

Acceptance/rejection of modifications made by recipient by supplier in GSTR-1A [Sub-sections (3) & (4) of section 38]

The details of supplies modified, deleted or included by recipient in his GSTR-2 are auto populated in Form GSTR-1A of the supplier concerned through common portal and the supplier may accept the modifications made by the recipient between the 15th day and 17th day of the month succeeding the relevant month. In such case, details furnished by him in GSTR-1 earlier get amended accordingly.

A recipient paying tax under composition scheme and an ISD modifies, deletes or includes a supply in GSTR-4 and GSTR-6 respectively and such changes are auto populated in GSTR-1A of the supplier concerned.

Contents of GSTR-2

Basic & Other Details Details of Inward Supplies
GSTIN B2B supplies under forward charge
Year Supplies under reverse charge
Tax Period Import of inputs and capital goods
Legal name and Trade name Debit/ Credit notes
HSN summary of inward supplies Supplies from composition taxable person and Nil rated/ exempted/ Non GST supplies
ISD Credit/ TDS Credit/ TCS Credit Amendments for prior period
Advances paid/advances adjusted  
ITC reversal/reclaim  
Addition/reduction in output tax due to mismatch  

 

Auto-populated and non-auto populated information

The information in GSTR-2 with respect to inward supply is broadly divided into 2 Parts. The first part deals with particulars which are auto-populated (to the extent they are accepted/modified in GSTR-2A) namely,

  1. Inward supplies received from registered persons including inward supplies taxable under reverse charge,
  2. Amendments to details of inward supplies received in earlier tax periods,
  3. Details of credit/debit notes
  4. Amendment to details of credit/debit notes of earlier tax periods

The second part deals with particulars which are not auto-populated. Few examples of such type of particulars are:

  1. Outward supplies which are not entered by the supplier in his GSTR-1
  2. Details relating to claim of ITC, which the recipient has to decide on the basis of his self-assessment
  3. Goods/services imported from out of India which attract IGST. These details are to be entered by the importer manually.

Details of inward supply furnished in prior periods amended

In case any error or omission is discovered in GSTR-2 during matching under sections 42 and 43, rectification of the same will be effected in the GSTR-2 of the month in which such error/omission is discovered. Like GSTR-1, in GSTR-2 also, there are Amendment Tables viz.,

These amendments are to be made by the recipient only if he agrees to the mismatch report communicated to him by the system every month, after the processing of the return. Tax and interest, if any, arising out of such rectification will be paid by the person responsible for filing the return of inward supplies.

Time limit for amendment

The maximum time limit within which such rectification is permissible is earlier of the following dates:

  • Date of filing of monthly return u/s 39 for the month of September following the end of the financial year to which such details pertain or
  • Date of filing of the relevant annual return.