FORM GST ANX-2 details inward supplies, allowing taxpayers to accept, reject, or pend documents for accurate input tax credit claims.
FORM GST ANX-2 was the annexure of inward supplies in the proposed ‘new’ GST return system, where a buyer could accept, reject or keep pending the invoices uploaded by suppliers to claim input tax credit. Although the new system was later shelved in favour of GSTR-2B, this guide explains the purpose and working of ANX-2.
The new Goods and Services Tax (GST) Return System features a primary return, FORM GST RET-1, accompanied by two annexures: FORM GST ANX-1 and FORM GST ANX-2.
This return mandates monthly submission for most taxpayers, though smaller businesses (with turnover up to Rs 5 crore) can opt for quarterly filing.
Important Update As of March 14, 2020, the revised GST return system was slated for implementation from October 2020.
Until September 2020, the existing filing mechanisms (GSTR-1, 2A, and 3B) were to remain in effect.
This was subject to notifications from the Central Board of Indirect Taxes and Customs (CBIC).
What is FORM GST ANX-2? FORM GST ANX-2 serves as an attachment to the principal return, FORM GST RET-1.
It details all inward supplies, allowing the recipient of these supplies to either accept, reject, or mark documents as pending for future action.
An acceptance confirms that the supplies reported by suppliers in FORM GST ANX-1 are accurate.
Contents of FORM GST ANX-2 The FORM GST ANX-2 includes the following sections:
- GSTIN: Taxpayers must enter their Goods and Services Tax Identification Number.
- Basic Details: Information such as the trade name and legal name is automatically populated based on the provided GSTIN.
- Inward Supplies: This section captures details of inward supplies received from registered persons (excluding those under reverse charge), imports, and supplies from Special Economic Zone (SEZ) units or developers via a Bill of Entry. The specifics are structured as follows:
| Table No. | Name of the Table | Instructions |
|---|---|---|
| 3A | Supplies from Registered Persons, including Services from SEZ Units | Data in these tables is auto-filled from the supplier’s FORM GST ANX-1, specifically from tables 3B (supplies to registered persons), 3E (tax-paid supplies to SEZ units/developers), 3F (tax-exempt supplies to SEZ units/developers), and 3G (deemed exports). Recipients can accept, reject, or mark these documents as pending. |
| 3B | Import of Goods from SEZ Units/Developers via Bill of Entry | |
| 3C | Import of Goods from Overseas via Bill of Entry | |
| 4 | Summary of Input Tax Credit | This table presents the total input tax credit for the filing period, categorized by the recipient’s actions: total credit from rejected documents, total credit from pending documents, and total credit from accepted documents. |
| 5 | ISD Credits Received | This section is for reporting eligible input tax credit received from an Input Service Distributor, with details required document-wise. |
Important Considerations for Filing FORM GST ANX-2 Taxpayers should be aware of several key points when filing their FORM GST ANX-2:
- Suppliers can continuously upload documents in FORM GST ANX-1 in real-time, which will then automatically appear in the recipient’s FORM GST ANX-2.
- Recipients can review documents uploaded by suppliers in FORM GST ANX-2 and choose to accept, reject, or keep them pending.
- Accepting a document signifies that it was received before the recipient’s return filing and that the details provided by the supplier are accurate.
- Only the supplier can make corrections to rejected documents by modifying their FORM GST ANX-1.
- If a recipient marks a document as pending, they defer action on it for a later date (acceptance or rejection). Input tax credit for these pending documents will not be reflected in the main return, FORM GST RET-1.
- Suppliers cannot amend invoices marked as pending unless they are first rejected by the recipient.
- FORM GST ANX-2 will indicate whether the supplier has filed their return. However, this status does not impact the recipient’s eligibility for input tax credit, which is determined by the GST Act and its associated rules.
- A separate function will allow searching for and rejecting an already accepted document where credit has been claimed. This credit will appear as a reversal in table 4B(1) of FORM GST RET-1 and can be adjusted in table 4A(11) of the same return to calculate the final availed input tax credit.
- FORM GST ANX-2 is considered filed automatically upon the filing of the corresponding main return, FORM GST RET-1, for that tax period.
- If a supplier uploads documents in FORM GST ANX-1 but fails to file their return for two consecutive periods (or one quarter for quarterly filers), the recipient cannot claim credit on these documents, even if they are visible in FORM GST ANX-2. The recipient still has the option to reject or mark these documents as pending.
Frequently Asked Questions
What was FORM GST ANX-2?
An annexure of inward supplies in the proposed new return system, used to accept or reject supplier invoices for ITC.
Is ANX-2 currently in use?
No, the new return system was shelved; GSTR-2B now serves as the ITC statement.
What actions could be taken in ANX-2?
A buyer could accept, reject or mark invoices as pending.
What replaced ANX-2?
The auto-drafted GSTR-2B statement replaced the ANX-1/ANX-2 mechanism.
