RAISING DEBIT NOTE IN GST PORTAL FOR TAX

[SAFETAB LIFESCIENCE]

Dear Experts,

We have raised Invoices for some parties @ 12 % GST for a particular product and subsequently the said product was classified under 18% GST and we have paid and debited voluntarily and intimated through DRC-03.

Now, some customers are accepting to pay the differential Tax.

Our query is how to collect the differential tax alone and pass the tax benefit to customers.

1. We can raise debit note. But in GST portal we can not upload our DN only for the tax value alone against any particular invoice. In portal it requires Note Value, Tax rate, Tax value and taxable value.

2. Shall we amend (in box 9B in GSTR-1) the B2B Sales Invoices with tax rates.

3. Shall we raise CN for 12% firstly and then shall we raise DN for 18% so that customer will also account both of our CN and DN so that they can get ITC for full tax.

[YAGAY andSUN]

You can raise a Debit note for differential tax by giving the cross reference of that particular Tax Invoice.

[SAFETAB LIFESCIENCE]

Dear Sir,

In portal it is asking the Taxable Value Tax Rate and Tax value and Debit Note value. In this case the differnetial tax is 6 % and there is no provision for 6% in IGST. We have to give Taxable Value and it will automatically work out the tax.

Now, please explain how to raise DN and post in portal.

[Shilpi Jain]

You can raise the DN itself and the taxable value of teh DN can be manually amended in GSTR-1. So amend the taxable value by backworking from the tax amount

[SAFETAB LIFESCIENCE]

Hi Mam,

In GSTR-1, first of all we have to mention the DN amount on the top. Then at the bottom boxes will be created in which we can mention only Taxable value and Tax will be automatically calculated by portal. There is no option for 6% in IGST. Please explain how we can enter DN in GSTR-1 as you said by back working.

1. I have already raised Invoice for Taxable value ₹ 10,000.00 + 12%GST 1200.00 and total Invoice value of ₹ 11,200.00

2. Now, I have to raise DN only for differential tax of ₹ 600 being the 6%.

3. Please explain how can I enter in GSTR-1 and pass only the Tax of ₹ 600.00 to the customer.

[Ganeshan Kalyani]

Sir, refer 115327 dated 16.08.2019 which is on the same subject.

[SIVARAMA KUMAR]

Sir,

In your case the taxable value remains the same ,and the issue is change in tax rate . As such it would be a better option to raise a debit note for the entire value of sale raised at 12% and raise a fresh invoice for 18% as mentioned by you. It will clear all complications .

[SAFETAB LIFESCIENCE]

Dear Mr. Sivarama Kumar Sir,

I think we have issue credit note for the entire 12% taxed invoice value, but you had mentioned that we have to raise Debit Note. I think Debit Note will act as Invoice only, right. Already 12% taxed Invoice raised. Now you are asking to raise Debit Note. Is it correct.

You had advised to raise fresh invoice with 18% tax. In such case, how we can raise e-way bill as the taxable value is 67.57 Lakhs.

[SIVARAMA KUMAR]

Sir,

sorry for the Error. Please amend the invoices in the next month GSTR-1 (9A B2b) and let me know whether it works in your case.

AI Summary

Differential GST collection: use a debit note or GSTR amendment to recover the higher tax from customers. Collection of additional GST due to a rate change can be achieved by issuing a debit note cross referencing the original invoice and entering a taxable value in the portal that back calculates to the required differential tax; alternatively, amend the B2B invoice in the next GSTR-1 or issue a credit note for the original invoice and reissue a fresh invoice at the correct tax rate, ensuring recipients can reconcile and claim input tax credit.