Understanding GSTR-2: Part 2

In our previous blogs  How to File GSTR-2: Part 1, we understood the details required to be furnished in table 3 of GSTR-2. In this blog, we will discuss how to File GSTR 2 -Table 4 . In table 4 of GSTR-2, you need to mention the details of inward supplies on which tax has to be paid on reverse charge.

The details in table 4 of GSTR-2 are required to be furnished invoice-wise and rate-wise. As shown in the above image, the table 4 of GSTR-2 is categorized into 3 parts – 4A, 4B, and 4C

• 4A: Inward supplies received from registered supplier attracting reverse charge
• 4B: Inward supplies received from unregistered dealer (URD)
• 4C: Tax paid on reverse charge basis on account of import of services.

Let us discussHow to File GSTR 2 Return – Table 4A, 4B and 4C

4A: Inward supplies received from registered supplier attracting reverse charge
In 4A, the details of inward supplies received from a registered supplier on which tax has to be paid on reverse charge basis need to be furnished. Certain notified goods and services have been notified, on receiving which, the recipient has to pay tax to the Government irrespective of whether your supplier is registered or not. These notified goods are cashew nut in shell, bidi wrapper leaves, and tobacco leaves. For services such as GTA, Legal Services, Sponsorship services etc., the tax is to be paid by the recipient on reverse charge. The complete list of services on which tax is to be paid by the recipient is available here.
The details from column 1 to 11 will be auto-populated based on details declared by your supplier in GSTR-1. In Column 12, ‘Whether input or input service/ Capital goods (incl plant and machinery)/ Ineligible for ITC’, you need mention whether you are eligible to avail credit or not.
If you are eligible for availing the ITC (complete or partial) of tax paid in the particular invoice, you have to select the nature of inward supplies as Inputs, Input Services, and capital goods and accordingly mention the amount of ITC you are eligible under column 13 to 16.
In case, you are not eligible to avail ITC, you have to select ‘Ineligible’ available in the list.
The details of ITC in Column 12 to 16 are similar to the table 3 of GSTR-2 discussed in our previous blog. To know this in detail, please read our previous blog How to File GSTR-2 – PART-1

4B: Inward supplies received from an unregistered supplier
In 4B, you need to furnish the invoice-wise rate-wise details of inward supplies received from the unregistered dealer (URD). Inward supplies from URD up to Rs 5,000 per day are exempted from paying tax on reverse charge. Only if the inward supplies received in a day (aggregate of inward supplies from all unregistered supplier) is more than Rs 5,000, you are liable to pay tax on reverse charge.
For inward supplies from URD exceeding Rs 5,000/day, you can raise a consolidated invoice and details of such invoices are required to be captured in 4B.
Similar to 4A, from column 1 to 11, you need to give the details pertaining to consolidated invoice and from 12 to 16, you need to capture the details related to ITC eligibility.

Column No

Details to be furnished in filing GSTR-2 Table 4B

1

Supplier registration is not applicable. You can leave it blank.

2 to 4

Consolidated invoice details such as Invoice Number, invoice date, and Invoice value will be captured.

6

The rate of tax will be captured here. In case, there is a single invoice with goods or services attracting multiple rates, let’s say, 18% and 28%, then the invoice will be split rate wise and details will be shown in 2 different lines.

7 to 10

Here, the amount of tax such as CGST and SGST, IGST and Cess as applicable paid on the inward supplies will be captured.

11

In place of supply, you have to capture the State/UT where the supplies were delivered.

12

You need mention whether you are eligible to avail credit or not. This is similar to 4A

13 to 16

Mention the amount of ITC you are eligible under column

Please note, if supplies from URD are less than Rs 5,000 per day, such details need to be captured as exempt supplies in table 7 of GSTR-2.

4C: Import of services
In 4C, you are required to furnish the details of tax paid on reverse charge basis on account of import of services. The following details are required to be captured.

Column No

Details to be furnished in filing GSTR-2 Table 4C

1

Supplier registration is not applicable for 4C

2 to 4

Invoice details such as Invoice Number, invoice date, and Invoice value will be captured.

6

The rate of tax will be captured here. In case, there is a single invoice with goods or services attracting multiple rates, let’s say, 18% and 28%, then the invoice will be split rate wise and details will be shown in 2 different lines.

7 to 10

Here, the amount of IGST and Cess as applicable paid on the import of services will be captured. Irrespective of the place of supply, imports of services are always classified as inter-state and only IGST will be applicable.

11

In place of supply, you have to capture the State/UT where the supplies were delivered.

12

You need mention whether you are eligible to avail credit or not. This is similar to 4A and 4B.

13 to 16

Mention the amount of ITC you are eligible to claim under this column

Point to be noted in filing GSTR2 return: Table 4A, 4B, and 4C.

• Only those inward supplies on which the liability to pay tax arises in the reporting month, needs to be furnished
• For example, you have received a service invoice (liable for a reverse charge) in the month of July but the payment is made in August The liability to pay tax on this will arise only in the month of August. Therefore, you need not declare this invoice in July return.
• According to Time of supply provisions, for services, the liability to pay tax on reverse charge arises earliest of the date of payment or 60 days from the date of invoice.
• In case of goods, it will be the earliest of the date of receipt of goods or date of payment or 30 Days from date of invoice. To know more on Time of supply, please read What Time of Supply is for services on Reverse Charge and What is Time of Supply for Goods on Reverse Charge

Click here to download GSTR-2 format
Other Blog posts in this series
How to File GSTR-2 PART 3: Furnishing of details of Inputs/Capital goods received from Overseas or from SEZ units on a Bill of Entry.