by GSTR-2, or the Goods and Services Tax Return-2, is a report that businesses in India need to file under the GST (Goods and Services Tax) regime. Unlike GSTR-1, which focuses on outward supplies made by a registered taxpayer, GSTR-2 deals with inward supplies, i.e., purchases made by the taxpayer during a specific tax period.
Why is GSTR-2 Important?
Input Tax Credit (ITC): GSTR-2 enables businesses to claim input tax credit by reporting the GST they have paid on their purchases. Accurate reporting of inward supplies ensures that businesses can claim the correct ITC amount, which helps reduce their tax liability.
GST Reconciliation: It serves as a basis for reconciliation between the buyer’s and the seller’s returns. This reconciliation helps in confirming the accuracy of tax paid and reducing the chances of mismatches and disputes.
Compliance: Filing GSTR-2 is mandatory for registered GST taxpayers. Non-compliance can lead to penalties and legal consequences.
Generate GSTR-2 Report
Go to “Gateway of Tally.”
Click on “Display.”
Select “Statutory Reports.”
Choose “GST.”
Select “GSTR-2.”
Suppose you run a furniture manufacturing business, and during a particular tax period, you purchase raw materials worth Rs. 1,00,000 from a GST-registered supplier. The GST rate applicable to these materials is 18%. Here’s how you would record and report this transaction in Tally Prime:
1. Enter a purchase voucher in Tally Prime:
Debit: Purchase Account – Rs. 1,00,000
Credit: Supplier’s Account – Rs. 1,00,000
GST (18%) – Rs. 18,0002. Verify and ensure that the transaction is correctly recorded.
3. Generate the GSTR-2 report in Tally Prime.
4. Review the report and ensure that the Rs. 18,000 GST paid is accurately reflected in the report.
5. File the GSTR-2 return on the GST portal, using the data generated by Tally Prime.
