GSTR 2 Overview: Filing Process, Format, Who Should File & Compliance Rules

Suman Singh, who is a reputed woman of Rae Bareli, started Anuragam Papadam in 2018 with just ₹12,000 and a daily production of 5 kg. By 2021, her monthly output grew to 150 kg, pushing her annual turnover past ₹20 lakhs, making GST registration mandatory. 

She began filing monthly GST returns on the government portal, including GSTR-1 for sales and GSTR-3B for tax payments. Every month by the 12th, Suman carefully checked her GSTR-2B statement, which showed ₹7,560 as Input Tax Credit on purchases like packaging materials worth ₹42,000. 

She was able to keep her business compliant and maintain an ongoing supply of cash by avoiding hefty mismatches and penalties thanks to this adjustment. Her revenue increased to ₹36 lakhs per year by 2025 as a result of this systematic strategy, and she was able to obtain a ₹5 lakh MSME loan to further develop, demonstrating how smart GST administration can support the expansion of small businesses.

What is GSTR-2? An Overview

GSTR-2 is a monthly return that registered GST taxpayers are required to file to report all their goods and services inward supplies (purchases). It detailed the input tax credit (ITC) a taxpayer wanted to claim on purchases made from registered suppliers.

Although the regular filing of GSTR-2 has been suspended and replaced by simplified returns in recent GST reforms, understanding its structure is essential for agreement and compliance.

The return contains information on:

• Details of inward supplies received during the month
• Eligible Input Tax Credit (ITC) claims
• Amendments to purchase details, if any

The data for GSTR-2 was to be auto-populated from the suppliers’ GSTR-1 (outward supplies), but taxpayers had the responsibility to verify, amend, accept or reject the details, and then file the return.

Example:

Suppose, in April 2025, a taxpayer purchased goods worth ₹1,00,000 from a registered supplier charging 18% GST (₹18,000). This purchase should be reported in GSTR-2 to claim an Input Tax Credit of ₹18,000, reducing the taxpayer’s GST liability.

• Purchase value (goods): ₹1,00,000
• GST paid on purchase: ₹18,000 (CGST + SGST/IGST)
• Eligible ITC claim in GSTR-2: ₹18,000

To claim the credit, the taxpayer verifies this ITC against the supplier’s GSTR-1 data and includes it in the GSTR-2 return.

Who Should File GSTR-2? Eligibility and Requirements
 

Example: Mr Sharma buys goods worth ₹1,00,000 + ₹18,000 GST; claims ₹18,000 ITC via GSTR-2B and files GSTR-3B to avail credit.

GSTR-2 Format Explained: Key Sections and Details

GSTR-2 was designed as a monthly return for taxpayers to report their inward supplies and claim Input Tax Credit (ITC). Though its filing is currently suspended, understanding the format helps businesses understand their purchase data with supplier details.

The key sections of the GSTR-2 format were:

• Basic Details: Includes GSTIN of the taxpayer, legal name, return period, and filing date.
   
• Inward Supplies from Registered Taxpayers: Details of purchases from registered suppliers, including invoice-wise data of goods and services. This section helped verify ITC eligibility.
   
• Import of Goods: Records of goods imported from outside India, specifying customs details and tax paid.
   
• Inward Supplies from Composition Taxable Persons: Details of purchases made from suppliers registered under the Composition Scheme.
   
• Inward Supplies from Unregistered Persons: Details of supplies from unregistered suppliers including reverse charge mechanism (RCM) transactions.
   
• Credit/Debit Notes: Information on credit and debit notes received related to previous purchases, affecting ITC claims.
   
• Tax Payable and Paid: Summary of tax liabilities calculated based on inward supplies, and tax paid accordingly.

Example:

Suppose in April 2025, a taxpayer receives the following inward supplies:

• Purchase of raw materials worth ₹1,50,000 from a registered supplier charging 18% GST (₹27,000).
   
• Import of goods worth ₹50,000 with IGST of 18% (₹9,000).
   
• Purchase of office stationery worth ₹10,000 from an unregistered dealer, attracting reverse charge with GST at 18% (₹1,800).
   
• A credit note of ₹5,000 related to a previous purchase reducing ITC by ₹900 (18%).

In the GSTR-2 return, the taxpayer would report:
 

For official formats and the latest updates, always refer to the GST Portal.

Important Compliance Rules and Deadlines for GSTR-2

GSTR-2 was a monthly return designed to capture inward supplies and facilitate Input Tax Credit (ITC) claims. While the filing of GSTR-2 has been suspended since 2019, understanding the compliance framework and deadlines remains important for historical reference and for managing ITC claims through GSTR-2B and GSTR-3 B.

Key Compliance Rules:
 

• Timely Filing: GSTR-2 was originally due by the 15th of the following month after the month of supply. For example, the GSTR-2 for purchases made in April had to be filed by May 15th.
   
• Matching and Agreement: Taxpayers were required to reconcile their inward supplies with the supplier’s outward supplies reported in GSTR-1. Discrepancies had to be communicated and resolved before filing GSTR-2.
   
• Accurate ITC Claims: ITC claims could only be made for inward supplies correctly reported and accepted in GSTR-2, preventing wrongful or excess credit claims.
   
• Penalty for Non-Filing or Late Filing: Failure to file GSTR-2 on time attracted a late fee of ₹100 per day (₹50 CGST + ₹50 SGST), subject to a maximum cap. Additionally, interest was payable on any delayed tax payments.
   
• Data Amendments: Amendments or corrections to purchase details had to be made in subsequent returns to maintain accuracy.

Example: Suppose, for April 2025, a taxpayer has inward supplies totalling ₹3,00,000 with applicable GST of ₹54,000. The due date for filing GSTR-2 was May 15, 2025.
 

• If the taxpayer files on May 20, 2025, they will incur a late fee of ₹100 per day for 5 days, totalling ₹500 (₹250 CGST + ₹250 SGST).
   
• If the taxpayer delays the payment of GST liability by 10 days beyond the due date, interest will be charged on the outstanding amount at the prescribed rate (currently 18% per annum).
   
• To claim an ITC of ₹54,000, the taxpayer must ensure all inward supplies are accurately reported and settled with supplier data.

Conclusion

To report incoming supplies and get the Input Tax Credit in GST, GSTR-2 was an important return. It is still important to know what it looks like, how to file it, who can file it, and the rules of compliance in order to properly reconcile GST and conduct smooth business even though filing it has been suspended. Taxpayers can effectively maximize their tax benefits and stay compliant if they are aware of the new GST guidelines.

Faqs
 

Q. What is GSTR-2?

GSTR-2 is a monthly return for reporting inward supplies and claiming Input Tax Credit, now suspended.

Q. Who needs to file GSTR-2?

Regular taxpayers previously filed GSTR-2, but its filing is currently suspended for all.

Q. What is the deadline for filing GSTR-2?

The original deadline was the 15th of the following month, but filing is now suspended.

Q. How is Input Tax Credit claimed without GSTR-2?

ITC is claimed through the auto-populated GSTR-2B and filed in GSTR-3 B.
 

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