Cancellation of invoice

[Nidhi Shah]

A company is exporting material ,the sales order value is say 100. Company is sending material partially, and by mistake total invoice value against that order increased then the sales order value. The party will not agree to pay more...so revision of order is not possible..and the company has L/C against this order. How to correct this problem?

[Ganeshan Kalyani]

Cancell the invoice and generate new invoice with correct value.

[Nidhi Shah]

But material already sent outside country and got certificate of origin and shipping bill as well. How can we revise export invoicing as per GST and export rules ?

[KASTURI SETHI]

You will have to resolve your problem amicably with your buyer. Letter of Credit has to be changed. Otherwise there is no other remedy or option. This is the practical solution.

[CSSANJAY MALHOTRA]

Option of raising Credit Note is available with you. Same can be reported in GSTR-1 at GST Portal also.

[YAGAY andSUN]

Issuance of credit note and amendment in LC are the only corrective measures which can be taken in this matter. Further, if any Export Incentive is required to be reversed, then, please reversed or pay it back along with interest of @ 15% p.a.

AI Summary

Company Faces Invoice Overcharge; Solutions Include Amending L/C, New Invoice, or Credit Note Reporting on GST Portal. A company faced an issue where the invoice value for an export order exceeded the sales order value, and the buyer refused to pay the excess. The company has a Letter of Credit (L/C) linked to this order. Solutions proposed include canceling the invoice and issuing a new one, resolving the issue with the buyer, amending the L/C, and issuing a credit note, which can be reported on the GST portal. Additionally, if any export incentives need reversal, they should be repaid with interest.