IGST Payable Negative in GSTR1

[Veeramani S]

IGST purchase accounted in May-23 and Input Tax Credit utilized. Due to some issue, the purchase return has to be done in Jul-23, for which by mistake IGST Sale Invoice raised against the same supplier and IGST payable also paid in Aug-23 (instead of reversing the IGST Input Tax Credit for which he should have raised Debit Note against that purchase).

In the month of Sep-23, that Sale Invoice, treated as Sales Return and Credit note raised against that Sale Invoice. This trader usually sell goods within the State only. Now that Sales Return shown in the GSTR-1 in Sep-23 as Negative. All are B2B transactions.

Doubt: Can we adjust that Negative figure (IGST Payable declared as Negative on GSTR-1 in sep-23 ) against IGST Sales if any, in future months or Can we apply for Refund ?

AI Summary

Trader Issues Wrong IGST Invoice, Experts Advise Correcting with Credit Notes, Warn Against Refund Claims Due to Audit Risks. A trader mistakenly raised an IGST sale invoice instead of a credit note for returned goods, resulting in a negative IGST payable in GSTR-1 for September 2023. The trader, who typically conducts intra-state sales, inquired whether this negative figure could be adjusted against future IGST sales or if a refund should be sought. Respondents suggested canceling the incorrect invoice and issuing appropriate credit/debit notes. One opinion advised applying for a refund if no regular IGST sales occur, while another highlighted potential audit implications of seeking a refund. The discussion emphasized correcting the error through credit notes rather than refunds.