1. Furnishing details of inward supplies:

• Who needs to furnish: Every registered person (except those mentioned in Section 14 Under GST act 2017 of the IGST Act, 2017) is required to furnish details of inward supplies received during a tax period.
• Form and platform: These details must be electronically furnished in Form GSTR- Under GST act 2017 2 through the GST common portal.
• Information source: The primary source for these details is Part A, Part B, and Part C of Form GSTR-2A. This form contains Under GST act 2017 information pre-populated from the suppliers’ return (Form GSTR-1) or import data in case of non-resident taxable persons.
• Additional details: Apart from the pre-populated information, you can include any other Under GST act 2017 inward supplies not captured in Form GSTR-2A.

2. Reconciling and accepting/rejecting details:

• Acceptance/rejection window: After you receive details of inward supplies in Form GSTR-2A, you have the option to accept or reject them between the 15th and 17th day of the month following the tax period.
• Impact of acceptance/rejection: Accepting the details updates your GSTR-2 Under GST act 2017Conversely, rejecting them requires manual adjustments in your records and potential tax implications.
• Unmatched details: If any inward Under GST act 2017 supply remains unmatched even after reconciliation, you’ll need to rectify errors or omissions in your records and potentially pay tax dues.

EXAMPLE

General Process:

1. Suppliers’ Invoices: The primary source for inward supply details is the tax invoices Under GST act 2017 issued by the suppliers. These invoices should include the following information:
   • GST Identification Number (GSTIN) of the supplier and recipient
   • Description of the goods or services supplied
   • HSN/SAC code for the goods or services
   • Taxable value of the supply
   • GST rate applicable
   • Amount of CGST, SGST, and IGST charged (depending on the type of transaction)
2. GSTR-2A: Suppliers electronically file their outward supply details in the GSTR-1 form, which are then pre-populated in Part A of the GSTR-2A Under GST act 2017 form for the respective recipients. This pre-filled information serves as a starting point for the recipient to verify and accept or reject the details.
3. GSTR-2 Filing: Based on the information in the invoices and GSTR-2A, the registered Under GST act 2017 person prepares and submits the GSTR-2 electronically on the GST common portal. This return includes details of all inward supplies, including:
   • Supplier’s GSTIN
   • Invoice number and date
   • HSN/SAC code
   • Taxable value
   • GST rate
   • Amount of CGST, SGST, and IGST paid

State-Specific Variations:

• Some states have their own additional forms or requirements for reporting inward Under GST act 2017For example, in Tamil Nadu, there is a Form GST-TN-11 for reporting purchases from unregistered dealers.

Specific Example:

Let’s consider a registered person in Tamil Nadu who purchases raw materials from a supplier in Maharashtra. The supplier issues an invoice with the following details:

• Supplier’s GSTIN: 27AABCC12345C1Z5
• Invoice number: 123/2024
• Invoice date: 01-Jan-2024
• Description: Steel sheets
• HSN code: 7208
• Taxable value: Rs. 1,00,000
• GST rate: 18%

The recipient in Tamil Nadu would:

1. Receive the invoice and verify the details.
2. Check the pre-filled information in Part A of their GSTR-2A for this invoice.
3. If the information is correct, accept the details in the GSTR-2.
4. If there are any discrepancies, reject the details and communicate the corrections to the supplier.
5. Include the invoice details in their GSTR-2 return, mentioning the CGST and SGST components of the 18% GST paid.

FAQ QUESTIONS

Q: Who is required to file details of inward supplies?

• Every registered person under GST, except those exempted under Section 14 of the Under GST act 2017 IGST Act 2017, must file details of inward supplies received during a tax period.

Q: What form is used to file inward supply details?

• Inward supply details are filed electronically in Form GSTR-2 on the Goods and Under GST act 2017 Services Tax Network (GSTN) portal.

Q: What information is included in Form GSTR-2?

• Form GSTR-2 includes details of all inward supplies of goods and services received, including:
  • Supplier’s GSTIN
  • Invoice number and date
  • Value of supply
  • Rate of tax
  • Amount of tax paid (CGST, SGST/UTGST, IGST)

Q: What is the deadline for filing Form GSTR-2?

• The deadline for Under GST act 2017 filing Form GSTR-2 is the 15th of the following month for the tax period in question.

Q: How can I access details of inward supplies received from my suppliers?

• Registered suppliers are required to furnish details of outward supplies in Form GSTR-1 which automatically populates in Part A of Form GSTR-2A Under GST act 2017for the recipient. You can access these details on the GSTN portal.

Q: What happens if I miss the deadline for filing Form GSTR-2?

• Late filing will attract a late fee as per the provisions of the GST Act.

Q: Can I revise Form GSTR-2 once filed?

• Yes, you can revise Form GSTR-2 within the prescribed timeframe for filing returns for the relevant tax period.

Q: What are the consequences of not filing Form GSTR-2 or furnishing incorrect information?

• Non-compliance can lead to penalties, interest charges, and even prosecution in severe cases.

CASE LAWS

1. VKC Footsteps India Pvt. Ltd. vs. Union of India [2019 (20) G.S.T.L. 345 (Tri. – Del.)]

• Held that a registered person cannot be denied ITC merely GST act 2017 because the supplier has not filed GSTR-1.
• Recipient’s entitlement to ITC is based on actual inward supplies, not the supplier’s compliance.

2. M/s. Ferro Alloys Corporation Ltd. vs. Commissioner of Central Goods and Service GST act 2017Tax and Central Excise, Raipur [2019 (20) G.S.T.L. 546 (Tri. – Del.)]

• Allowed ITC on invoices not reflected in GSTR-2A, provided the recipient possesses valid invoices and proof of payment.
• Emphasized the importance of substance over form in GST act 2017 ITC claims.

3. Columbia Asia Hospitals Pvt. Ltd. vs. Union of India [2019 (23) G.S.T.L. 254 (Tri. – Bang.)]

• Ruled that recipient cannot be held responsible GST act 2017for errors or omissions in supplier’s GSTR-1.
• Recipient’s ITC entitlement cannot be denied due to supplier’s non-compliance.

4. Arise India Limited vs. Union of India [2020 (32) G.S.T.L. 154 (Tri. – Del.)]

• Upheld the validity of Rule 36(4), allowing GST act 2017rectification of errors in GSTR-1 even after filing of GSTR-3B.
• Provided relief to recipients facing ITC mismatches due to supplier’s delayed corrections.

5. VKC Footsteps India Pvt. Ltd. vs. Union of India [2021 (42) G.S.T.L. 1 (Tri. – Del.)]

• Reiterates that recipient’s ITC claim cannot be GST act 2017 denied solely on the basis of non-filing of GSTR-1 by supplier.
• Emphasizes the focus on actual inward supplies and possession of valid invoices.

Additional points to consider:

• Recent amendments: The CGST Rules 2017 have been amended to mandate filing of GSTR-1 before claiming ITC, effective January 1, 2022. This could impact future case law developments.
• Appellate Tribunal decisions: These GST act 2017 cases are not binding on lower authorities but carry persuasive value.
• Case law evolution: The GST regime is still evolving, so it’s essential to stay updated on the latest case laws.