Annexure B worked example: ads, imported services and capital goods

Use this example to prepare domestic advertising, an imported service and a capital asset for Annexure B. It shows the supply classification, document details, tax heads and GSTR-2B period, then reconciles ₹36,000 of eligible input tax credit (ITC) to ₹27,000 of refund Net ITC.

All transactions, references, dates and amounts below are invented. Google, Meta and Reddit are recognisable brand examples; the legal supplier on your actual invoice determines the treatment. This example is a working guide, not a file to upload.

1. Build the purchase working

Assume an April–June 2026 service-export claim. These purchases are for the business; credit conditions are met and ITC was availed in the quarter. Domestic advertising is assumed to be an interstate supply billed by an Indian GST-registered entity. The inverter is a local purchase capitalised in the books. There are no blocked credits, other reversals or cess.

Purchase	Value before tax	CGST	SGST	IGST
Google advertising	₹80,000	₹0	₹0	₹14,400
Meta advertising	₹50,000	₹0	₹0	₹9,000
Reddit imported advertising, RCM discharged	₹20,000	₹0	₹0	₹3,600
Capitalised inverter system	₹50,000	₹4,500	₹4,500	₹0
Total tax		₹4,500	₹4,500	₹27,000

Tax rates are assumptions for these fictional documents. Copy the actual tax and classification from supported records; a vendor name does not determine the tax head or rate.

2. Choose supply type and input category separately

Purchase	Purchase classification	Source document	Category of input supplies
Google / Meta Indian invoices	Domestic purchase from a registered supplier	Supplier tax invoice	Input Services
Reddit foreign service, supplier unregistered in India	Imported service under RCM	Self-invoice linked to foreign bill	Input Services
Capitalised inverter system	Domestic purchase from a registered supplier	Supplier tax invoice	Capital Goods

These are preparation classifications, not a list of exact dropdown labels. Transfer each row using the matching choices in the JSON generator or in the current official utility. An imported service remains an import even though the recipient pays its tax through reverse charge. Do not change its classification to bypass a validation error.

GSTN requires separate lines for each input category and HSN/SAC combination. When pasting a dropdown value into the utility, match its option exactly and leave protected cells alone. GSTN Annexure B advisory, sections 2, 4 and 9.

3. Enter document details and return periods

Here are example document references. The domestic documents appear in April 2026 GSTR-2B. The foreign-service document is the recipient’s self-invoice, cross-referenced to the original supplier bill.

Record	Document number	Date	Document value used here	2B return period
Google Indian tax invoice	DEMO-G01	30 April 2026	₹94,400	April 2026
Meta Indian tax invoice	DEMO-M01	30 April 2026	₹59,000	April 2026
Imported-service self-invoice	RCM/26-27/001	15 April 2026	₹23,600	Outside GSTR-2B
Inverter supplier invoice	DEMO-P01	10 April 2026	₹59,000 before splitting below	April 2026

Document value is distinct from taxable value and from tax credit. The domestic values above include the tax shown on those documents. The fictional self-invoice separately shows ₹20,000 service value and ₹3,600 recipient-paid IGST, with a ₹23,600 total. Only ₹20,000 is payable to the foreign supplier. Preserve that explanation alongside the original bill; do not record both documents as two purchases. See how to prepare the self-invoice and pay RCM.

Retain the actual supplier GSTIN and legal name for domestic invoices. GSTN confirms that imported-service RCM is outside GSTR-2B. Do not invent a supplier GSTIN or a statement month for it. Fields that do not apply to the selected supply type stay empty: the JSON generator switches them off, and the utility’s instructions list them. GST portal: GSTR-2B FAQ, reverse-charge entries.

The refund period is April–June 2026; the domestic rows’ GSTR-2B period is April 2026. Follow the date and period formats of the JSON generator or the current utility when transferring this working. A supplier reporting late would change the actual 2B period; see which GSTR-2B period to enter.

4. Split a multi-HSN asset invoice without duplicating it

Suppose DEMO-P01 contains an inverter and battery under separate HSN headings. The classifications below are illustrative; use the codes supported by your actual invoice and classification review.

Same invoice, separate line	HSN	Allocated document value including tax	CGST	SGST
Inverter component, Capital Goods	8504	₹35,400	₹2,700	₹2,700
Battery component, Capital Goods	8507	₹23,600	₹1,800	₹1,800
Invoice total		₹59,000	₹4,500	₹4,500

Both rows retain the same supplier, document number and date. Each has its own input category/HSN combination and allocated amounts. Entering the whole ₹59,000 on both rows would double the document value. The same principle applies where a single invoice mixes goods and services. GSTN Annexure B advisory, 18 May 2026.

For the advertising rows, use the verified SAC from the invoice or service-classification working. A format check does not establish that the code describes the supply correctly.

5. Reconcile eligible credit to refundable Net ITC

Under this example’s assumptions, none of the credit is blocked under section 17(5), each row’s tax is eligible ITC and ineligible ITC is zero. This includes the otherwise eligible capital-goods rows. Record those conclusions in the blocked-credit and eligibility fields of each row. Their exclusion from this refund belongs in the computation.

Eligible ITC ₹36,000 − capital-goods ITC ₹9,000 = refund Net ITC ₹27,000.

Rule 89(4)(B) defines Net ITC using inputs and input services. The capital-goods amount therefore stays outside this service-export refund calculation. CGST Rules, Rule 89(4).

If your facts produce partial eligibility, enter the supported eligible and ineligible amounts and reconcile the applicable reversals with GSTR-3B. Do not deduct the same exclusion twice. Enter zero reversal totals only when that is true; copying this example’s zeros is not a review of your returns.

For a case with blocked or partly eligible credit, follow the eligibility and reversals working. It explains which purchase records belong in the statement and where each reduction is accounted for.

The capital-goods guide explains why eligible asset credit stays outside Rule 89(4) Net ITC. The refund calculation then applies the export proportion and both ledger limits to ₹27,000.

6. Generate and verify the upload

1. Enter the rows and the reversal totals in the Annexure B JSON generator, which runs in a browser, or in the current Annexure B utility, which needs Windows Excel. Correct what the checks report: the generator lists every problem with its row; in the utility, validate and correct the highlighted source cells.
2. Generate a fresh JSON and upload it through Annexure B.
3. Compare accepted rows, tax by head, reversals and the consolidated total with your working.
4. Download the validated documents before filing, then move to the refund computation.

If a file or row fails validation, use the checks below and the downloaded error report.

Likely errors to check before retrying

A duplicate warning needs a comparison of supplier GSTIN, document number, date, input category and HSN/SAC. The inverter rows above have different HSNs; repeating an identical combination is a different case. Allocate amounts across genuine split rows instead of repeating the full invoice value.

If you use the utility: for pasted dropdowns, use its exact option and remove accidental spaces, and close an older utility before using a newly downloaded one. With multiple files, enter reversals only in the final file and reconcile the combined result. These checks follow GSTN’s May 2026 advisory. The Annexure B error guide connects each symptom to its investigation and resolution.