credit note on B2C supplies

[KERAGODEGOPALARAO ANANTHARAO]

Facts:-

1. My client is dealing in taxable and exempted goods. The customers are mainly B2C.

2. The outward supplies is declared in GSTR-1 of March 2022 and returns are filed.

3. Recently came to know that some of the taxable invoices are required to issue credit notes amount in Rs. 92,00,000.

4. In the month of July there was taxable outward supplies of Rs. 1,05,000 for which we have issued taxable invoices filed GSTR-1, filed the GSTR-3B and paid the taxes.

5. During the month of August and September there is no taxable supplies.

6. We have to issue credit note for RS. 92,00,000 for the month of March 2022

7. There is amendment in sec 34 (2), from which date it is applicable.

What is the remedy for the credit note of taxable supplies for the month of March 2022.

Can we rectify GSTR-1 and GSTR-3B for the above adjustment, is any way out for the output tax on the wrong taxable invoice issued during March 2022.

Kindly provide me the fees to be paid for above consultation. I have to file tax audit report for the 2021-22 I required information your guidance at the earliest madam.

Yours Faithfully,

K G ANANTHA RAO

AI Summary

Client Seeks Advice on Issuing Credit Notes Under Section 34(2) for Incorrect Taxable Invoices in GSTR-1 and GSTR-3B A client dealing with both taxable and exempt goods needs to issue a credit note for Rs. 92,00,000 due to incorrect taxable invoices issued in March 2022. The client seeks advice on rectifying GSTR-1 and GSTR-3B filings. Responses suggest issuing credit notes under Section 34(2) and reflecting them in GSTR-1, but note the challenge of negative entries in GSTR-3B. The discussion highlights the need to disclose credit notes by November 30 following the financial year of the supply. It is advised to use Circular No. 26/26/2017-GST for compliance and consider amendments if necessary.