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 and SUN]

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

Invoice correction: use credit note or amend letter of credit to align export invoicing with order and export rules.
When an export invoice exceeds the sales order, corrective options are cancelling and reissuing the invoice or issuing a credit note, amending the Letter of Credit with the buyer's agreement if shipment documents are already issued, and reversing any export incentives as required, with corresponding adjustments in GST reporting.