EXCESS CREDIT NOTES THAN TAXABLE INVOICES

[KERAGODEGOPALARAO ANANTHARAO]

1. Ours is a chartered accountants firm.

2. For the month of September 2021, for the bills which are unpaid before September 2021, as well which is paid less than our billing amount, we have issued credit notes on B2B invoices.

3. The credit notes are resulting in excess tax paid of ₹ 75000/-

4. We have filed the GSTR-1 in which excess paid by us is reflecting.

5. while we are trying to file GSTR-3B that excess amount is not autopopulated.

6. Excess paid is neither in electronic cash or credit ledger nor in portal anywhere.

7. What is the fate of the excess tax paid.

8. When the amount is collected, we have to raise tax invoice, how this problem is get solved.

Kindly guide me

Yours faithfully,..

K G Anantharao

[Rajagopalan Ranganathan]

Sir,

The credit notes were issued in September 2021. They will be included in GSTR-1 for September 2021. The last date for filing GSTR-1 for September is 11.10.2021. It will be auto ,populated in GSTR-3B for September 2021 for which the last date is 20.10.2021. You may take up the inaccuracy with GSTN help Desk by raising a ticket.

[Shilpi Jain]

What do you mean by you have paid excess tax in GSTR-1. There can be no tax paid by GSTR-1 maybe you are trying to say that you have shown excess liability in GSTR-1.

Also please check if you will be able to issue GST credit notes for contemplated bad debts may not be allowed in the law

[Ganeshan Kalyani]

You can raise a ticket at GSTN.

[ABHISHEK TRIPATHI]

Dear KA Sir,

Your adjustment of tax liability will happen after some checks and balances. I think sometimes it takes time. May approach your jurisdictional authority. As you have raised the CN in September, in any case you will be able to adjust the tax liability in future.

[KERAGODEGOPALARAO ANANTHARAO]

Dear sirs/Madams,

So far excess tax paid by credit notes are not reflected in GSTR-3B.

We have received the cheques from clients for fees for which already issued credit note.

Hence we issued credit notes, we issued fresh invoice for amount credited to bank and declared in GSTR-1 as B2B supplies.

The tax amount is reflecting in GSTR-3B.

How i can write off the tax with department, which is on credit note issued to B2B invoices.

[Shilpi Jain]

Unless you are able to show that there is some deficiency in service provided or what was charged was in excess, it may be difficult to justify the issue of credit note when asked by the department.

[KERAGODEGOPALARAO ANANTHARAO]

We have to raise the bill, unless we raise the bill client will not pay the amount, he may diasgree with fees what we charged issues a cheque for lower amount,which we have to accept,sometimes they pay the fees after septmber, justification is not a problem madam, but how to adjust in return is problem madam.

AI Summary

Credit note adjustment in GST: reconcile GSTR 1 and GSTR 3B and raise a GSTN ticket for unreconciled credits. Credit notes issued for B2B supplies must be reported in the GSTR 1 period of issuance and are expected to auto populate in the corresponding GSTR 3B so the output tax liability can be adjusted; if such credits do not appear in GSTR 3B or electronic ledgers despite correct GSTR 1 filing, taxpayers should reconcile with GSTN by raising a helpdesk ticket and liaising with the jurisdictional authority. Reissued invoices upon receipt of payment should be declared as B2B supplies and supported by documentation so that adjustments occur once the system recognizes the credit notes.