Interstate sales return is more than sales

[KERAGODEGOPALARAO ANANTHARAO]

The sales return to Interstate is more than sales amount to that particular state.

How to make entries in GSTR-1 and GSTR-3B?

[Prasanna Kumar]

Mr.KERAGODEGOPALARAO ANANTHARAO

Sir,

You can put the negative values in the returns. In GSTR 3B it can be done. In GSTR 1 the option is to claim as deductions from sales to the extent it absorbs and balance you can take in to next month's returns. Of course this is subject to time limit within which the returns has to come. Take care it should be both in taxable value and applicable GST .

Regards,

Prasanna Kumar

[Alkesh Jani]

Shri

Please elaborate your query with example if possible, as it is interesting to learn how return goods value can be more then sales amount.

[KERAGODEGOPALARAO ANANTHARAO]

Thank you sir. Still i need elaborate answer.

Registered person supplying goods within the state as well as interstate.

While selling to interstate, last month sold goods in one bill to Bihar.The goods are returned and credit note issued in this month.. In the current month no sales transaction to Bihar state. Now how to enter in GSTR-1 and GSTR-3B. ?

[Alkesh Jani]

Shri

In this case, you can reduce your liability for inter-state made if any and can adjust the same in your GSTR-3B. In GSTR-1 just add the credit note in the respective table.

Please refer Circular No.26/2017-GST dated 29.12.2017.

[Ganeshan Kalyani]

Sir, if you don't have any inter-state sale in the month then GSTR-3B will not accept the negative figure of sales return of sale to Bihar. In GSTR-1 it is possible as the credit note section is separate.

[KERAGODEGOPALARAO ANANTHARAO]

IN THE MOTH OF MAY 3 SALE BILLS OF B2C TO BIHAR IS MADE, OUT OF THAT ONE IS GOODS RETURNED.

CREDIT NOTE ISSUED IN JUNE 2020. ITS TAXABLE VALUE RS.137.29 TAX RS.24.71.

IN THE MONTH OF JUNE NO INTERSTATE BIHAR SALES TO B2C.

WHILE UPLOADING GSTR-1, WE ARE NOT FINDING ANY COLUMN FOR CREDIT NOTE WHERE NO SALES ARE MADE.

ANY POSSIBLE SOLUTION IN GSTR-1..

IN GSTR1 B2C OTHERS 22, CAN WE ENTER NEGATIVE FIGURE FOR BIHAR RETURNED GOODS AND UPLOAD IT, IS IT CORRECT.

WHILE FILING GSTR3B, IN COLUMN 3.1(a) WE ARE CONSIDERING NET VALUE OF TOTAL TAXABLE VALUE AFTER DEDUCTING RETURNED GOODS VALUE OF B2C FROM BIHAR CUSTOMER.

IS IT RIGHT

[Ganeshan Kalyani]

Sir, in GSTR-1, you can enter negative figure in B2C section. However, in GSTR-3B the negative figures are not allowed.

AI Summary

Credit note reporting: enter interstate sales returns in GSTR-1; adjust GSTR-3B liability without entering negative outward supplies.
Record the credit note in GSTR-1 using the credit note or B2C section (permitting negative entry where allowed). GSTR-3B will not accept negative outward-supply figures; therefore reduce current-period tax liability to the extent possible and, if the portal prevents negative entries, carry the adjustment into subsequent GSTR-3B periods, ensuring taxable value and tax are adjusted consistently.