supplymentory invoice cancel

[SANTOSH POPHALE]

Dear sir,

we have raised supplymentory invoice to customer in SAP on 13-Oct-17 , but customer not accept our invoice & says your invoice is wrong & may be cancel at your end.

please suggest can we cancel this invoice? OR can book credit note to customer?

if we issue credit note, can we knock off in GST return supplymentory inv (debit note) & credit note

a waited for your valueable reply pl.

Thanks & Regards,

s.g.pophale

[Rajagopalan Ranganathan]

Sir,

As per Section 34 (1) of CGST Act, 2017 "where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.

You have stated that the supplementary invoice issued by you was not accepted by your customer. Therefore you can issue a credit note to your customer. Then only your accounts will tally. The details to be shown in the credit note are prescribed by rule 53 of CGST Rules, 2017.

[DR.MARIAPPAN GOVINDARAJAN]

You can issue only credit note.

[SANTOSH POPHALE]

Sir,

Thanks for your reply,

Yes sir we will issue credit note, secondly pl. confirm

1. can we knock off in GST return supplymentory inv (debit note) against our issuing & credit note.

2. can we give both document to customer OR keep at our end for record

a waited for your valueable reply pl.

Thanks & Regards

santosh pophale

[Himansu Sekhar]

1. Issue the credit note

2. Ask the customer to reverse the credit if taken

3. Give the details of the credit note in GST1 which will require you to give the reference no. of the original invoice

4. Your liability will reduce

AI Summary

Credit note under GST permitted to rectify an issued supplementary invoice; report it with original invoice reference to reduce liability.
A supplier who issued an unaccepted supplementary invoice should issue a credit note to correct excess taxable value or tax, or where goods are returned or deficient; the credit note must include particulars prescribed by rule and be reported in the GST return with the original invoice reference, the recipient should reverse any claimed credit, and the supplier's liability will be reduced accordingly.