invoice cancelation

[Sandhya Kashyap]

we have despatch material in aug 2018 but 100 % material reject by customer than we have supply again material to customer by challan but now in the month of feb 2019 cutomer not accepting the august invoice and asking for new invoice. pls suggest what should we do with august 2018 invoice and should we issue current date invoice. pls suggest gst impact in all transaction.

[Prudhvi Jakkula]

1st case: If in August month you included that sale in GSTR-1 return(Assuming B2B supply)

Then you can issue credit note with respect to that august invoice in Feb month GSTR-1 return or you can amend that invoice in feb month GSTR-1 return. So that your old sale(i.e sale made in august) will get nullified.

In feb month you can issue new invoice to that customer.

2nd Case: If in August month that sale was not shown in GSTR-1 return.

Then you can simply include that new feb month invoice in Feb GSTR-1 return.

Hope it helps.

[DR.MARIAPPAN GOVINDARAJAN]

You can issue credit note for the invoice already issued and issue new invoice.

[Ganeshan Kalyani]

Issue credit note for the rejected material and issue fresh invoice for the current supplies. The old supply will get knocked off with credit note issued.

AI Summary

Credit note to nullify earlier taxable supply, followed by fresh invoice and GSTR-1 reporting when goods are rejected. Where goods were rejected and resupplied, reverse the original taxable event by issuing a credit note or amending the previously reported invoice in the current return if the original sale was included in GSTR-1; this nullifies the earlier taxable supply. If the original sale was not reported, include the replacement supply on a current-period invoice and report it in that period's GSTR-1. The operative steps are issuance of a credit note or amendment to reverse prior liability and proper reporting of the fresh invoice so the old supply is removed from tax records.