GSTR-1 vs. GSTR-2

Attribute	GSTR-1	GSTR-2
Filing Frequency	Monthly	Monthly
Details to be filed	Outward supplies	Inward supplies
Due Date	10th of the following month	15th of the following month
Input Tax Credit	Not applicable	Applicable
Matching of Invoices	Not required	Required

Introduction

GSTR-1 and GSTR-2 are two important components of the Goods and Services Tax (GST) system in India. Both forms are used by registered taxpayers to report their sales and purchases to the government. While they serve similar purposes, there are key differences in their attributes that taxpayers need to be aware of.

GSTR-1 Overview

GSTR-1 is a monthly or quarterly return that needs to be filed by all regular taxpayers who have a turnover exceeding a certain threshold. This form contains details of all outward supplies made by the taxpayer during the reporting period. It includes information such as invoice-wise details of sales, taxable value, and tax collected on sales.

One of the key attributes of GSTR-1 is that it is a return for outward supplies only. This means that it captures information related to sales made by the taxpayer to other businesses or consumers. GSTR-1 is crucial for the government to track the tax liabilities of taxpayers and ensure compliance with GST regulations.

Another important aspect of GSTR-1 is that it needs to be filed by the 10th of the following month for monthly filers and by the 13th of the following month for quarterly filers. Timely and accurate filing of GSTR-1 is essential to avoid penalties and interest charges.

GSTR-2 Overview

GSTR-2, on the other hand, is a monthly return that needs to be filed by taxpayers to report their inward supplies or purchases. This form contains details of all purchases made by the taxpayer during the reporting period, including information such as invoice-wise details of purchases, taxable value, and input tax credit claimed.

Unlike GSTR-1, which focuses on outward supplies, GSTR-2 is concerned with inward supplies. It helps the government track the input tax credit claimed by taxpayers on their purchases and ensures that the tax chain is maintained throughout the supply chain.

Similar to GSTR-1, GSTR-2 also has a specific due date for filing. Taxpayers need to file GSTR-2 by the 15th of the following month to avoid penalties and interest charges. Timely filing of GSTR-2 is essential for maintaining compliance with GST regulations.

Comparison of Attributes

When comparing the attributes of GSTR-1 and GSTR-2, it is important to note that both forms serve different purposes in the GST system. GSTR-1 focuses on outward supplies, while GSTR-2 focuses on inward supplies. This distinction is crucial for taxpayers to understand their reporting obligations under GST.

• GSTR-1 captures details of sales made by the taxpayer, while GSTR-2 captures details of purchases made by the taxpayer.
• GSTR-1 needs to be filed by the 10th or 13th of the following month, depending on the filing frequency, while GSTR-2 needs to be filed by the 15th of the following month.
• Both forms are essential for maintaining compliance with GST regulations and ensuring accurate reporting of sales and purchases to the government.

Overall, while GSTR-1 and GSTR-2 have different attributes and serve different purposes, they are both integral components of the GST system in India. Taxpayers need to understand the requirements of both forms and ensure timely and accurate filing to avoid penalties and maintain compliance with GST regulations.