TaxTMI 
TaxTMI 
SIR,
RAMESH OPTED TO COMPOSITION SCHEME DEALER GST ACT AND WRONGLY ISSUED B2B TAX INVOICE TO MUGESH. CAN RAMESH ISSUE CREDIT NOTE TO MUGESH FOR REFUND OF FULL TAX AMOUNT WRONGLY COLLECTED, FOR THE PURPOSE OF CONTINUE AS COMPOSITE DEALER SCHEME.
COMPOSITTION SCHEME DELAER IF WRONGLY ISSUED TAX INVOICE
04 Nov 2017 
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Composition scheme: wrongly issued tax invoice may be corrected by issuing credit note to refund collected tax.
A composition-scheme registrant who erroneously issued a B2B tax invoice may issue a credit note to refund the tax wrongly collected to preserve composition status, provided returns and records are adjusted. The registrant must ensure every bill bears the required declaration that a composition taxable person is not eligible to collect tax; omission can attract penalty, though voluntary self-correction prior to departmental action may mitigate penalty risk. (AI Summary)
A composition-scheme registrant who erroneously issued a B2B tax invoice may issue a credit note to refund the tax wrongly collected to preserve composition status, provided returns and records are adjusted. The registrant must ensure every bill bears the required declaration that a composition taxable person is not eligible to collect tax; omission can attract penalty, though voluntary self-correction prior to departmental action may mitigate penalty risk. (AI Summary)