Credit Notes raised in March 2019 to rectify double invoices uploaded in Sept 2018

[Varsha Nagrani]

I am currently facing a GST Department Audit where The tax practitioner of assessee had made a clerical error while filing GSTR-1 for Sept 2018. And recorded double invoices for all the B2B parties. However. He realized his error and rectified it by uploading credit notes for the same in March 2019. However, there was no effect whatsoever in GSTR-3B or GSTR 9 or in Books of assessee.

In such case, we are contemplating that the officer should consider the fact as error in filing of return. However, he is not considering the fact that Credit notes could have been raised.

Also, as there is no liability and just an error should interest be levied on difference in outward supply in GSTR-1 and GSTR-3B

AI Summary

GST reporting errors: duplicate return entries reversed by credit notes do not alone create tax liability if no supply occurred.
Duplicate B2B invoices were filed in a periodic outward supplies return and later reversed by credit notes in a subsequent period, but the proper remedy is amendment of the original return rather than credit notes. If no underlying supply or tax liability exists, tax and interest should not attach merely because of duplication; contemporaneous source documents can establish a clerical mistake. Some officers may request recipient confirmations that input credit was claimed only once, though no law mandates such declarations.