TaxTMI 
TaxTMI 
Whether by not declaring cdnr in case on B2C supply can disallow such reduction of taxable value n tax component ? And ask the RTP to claim refund of tax paid .
Cdnr not declared in gstr 1
25 May 2023 
4 Replies 
2249 Views Asked by
Credit note non-declaration: taxable value reduction not denied if supporting evidence shows tax incidence not passed on.
Failure to disclose credit-debit notes in GSTR-1 for B2C supplies does not automatically prevent reduction of taxable value or tax; the supplier must show that tax incidence was not passed to another person and that adjustments were reflected in GSTR-3B within the statutory period, supported by recipient-end evidence. B2C CDNR should be netted off in GSTR-1, CDNR for B2B is declared separately; amend GSTR-1 if open, or rectify in the annual return if not. Reporting mistakes alone do not negate entitlement to reduce taxable value, but require contemporaneous supporting documentation. (AI Summary)
Failure to disclose credit-debit notes in GSTR-1 for B2C supplies does not automatically prevent reduction of taxable value or tax; the supplier must show that tax incidence was not passed to another person and that adjustments were reflected in GSTR-3B within the statutory period, supported by recipient-end evidence. B2C CDNR should be netted off in GSTR-1, CDNR for B2B is declared separately; amend GSTR-1 if open, or rectify in the annual return if not. Reporting mistakes alone do not negate entitlement to reduce taxable value, but require contemporaneous supporting documentation. (AI Summary)