rectification of wrong invoice issued to recepient

[FARIDUDDIN AHMAD]

one of my client on 08/01/2024 issued one invoice and charged UPSGST and CGST on outward supply of goods made to inter state E way bill and E-invoice also has been generated by GSTIN portal and the goods is also received. kindly advise how to make correction in the invoice issued to recipient.

[KALLESHAMURTHY MURTHY K.N.]

Taxpayers will not be allowed to cancel an e-invoice once 24 hours have elapsed after the issuance of the said e-invoice. The e-invoice portal does not allow for amendment of e-invoices either. A taxpayer will either have to issue a debit note or modify/cancel such e-invoice on the GST portal.

[Amit Agrawal]

Tax-payer should issue credit-note u/s 34 against E-invoice dated 08.01.2024 and there-after, issue fresh E-invoice showing correct particulars including IGST payable.

If any query is raised by Dept., tax-payer can explain entire sequence of events so as to satisfy Dept's concerns.

Changing / modifying E-invoice dated 08.01.2024 while filing Form GSTR-1 for Jan, 24 may lead to its own sets of potential challenges in my view.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Sadanand Bulbule]

Dear all

Since there is clash of replies, the experts are requested to make their stand crystal clear for the benefit of the querist.

[Amit Agrawal]

Dear Shri Sadanand Bulbule Ji,

As you know, I always hold a view that wherever there is difference of opinion, it is necessary to explain reasoning/s for disagreement so as to help everyone to take their one calls. And wherever time permits, I do the same.

Before elaborating my previous post further, I wish to have the benefit of your own views on the query raised as well as said clash of opinion with your legal reasoning.

This is just to make these discussions more meaningful & engaging for the benefits of everyone.

[KASTURI SETHI]

Dear Sir,

----------------And also for my benefit.

[Sadanand Bulbule]

Dear Amit sirji

While respectfully welcoming your humble comments, I endorse your views which are got confirmed by the GST authorities.

A dealer can make amendments to the e-invoice in his GSTR-1 to enable his B2B customers to claim ITC properly to be filed for the month of January 2024 and there is no apprehension of disapproval of such amendments.

[Sadanand Bulbule]

Dear all

Further I add here that, for the purpose of computation of eligible ITC , the actual contents of invoices or credit notes in FORM GSTR-1 would remain the most relevant. So in my opinion, nothing shall come in the way of claiming eligible ITC by the registered dealer based on GSTR-1.

[Sadanand Bulbule]

Dear all

The provision of Section 37 of the GST Act clearly requires filing of GSTR-1 before the 10th day of the following month In the first place and GSTR-3B is the monthly return prescribed to be filed on or before 20^th of the succeeding month. Also, the GSTR-2A pertaining to the registered dealers would auto populate on the strength of the details fed by the individual suppliers on GSTR-1. Therefore, the ITC available to the registered dealers for each month remains fixed and unaltered, being dependent solely on the figures disclosed by the individual suppliers on FORM GSTR-1.

Further, reliance has been placed on a recent decision of the Hon'ble Calcutta High Court in Suncraft Energy Private Limited and Another Vs. The Assistant Commissioner, State Tax, Ballygunge Charge and Others decided on 02.08.2023 to submit, furnishing of details on GSTR-1 by a supplier and the corresponding information that arises to the purchaser on GSTR-2A is nothing more than a facilitation that does not have any effect on the ability of the taxpayer to avail ITC on self-assessment. As such there shall not be any difference between GSTR-2B & GSTR-3B, which finally remains governed by the provisions of Section 16 of the Act.

Also refer the recent SLP ruling dated 14/12/2023 of the Hon’ble Supreme Court rendered in the case of Suncraft Energy Private Limited and Another Vs. The Assistant Commissioner, State Tax, Ballygunge Charge and Others reported in 2023 (12) TMI 739 - SC ORDER.

This is only for general information without reference to the query on hand.

[Amit Agrawal]

Thanks, Shri Sadanand Sadabule Ji for sharing your views.

Now, as desired by you, I am elaborating my conflicting views from my post at Sr. No. 2 above and same reads as follows:

Changing / modifying E-invoice dated 08.01.2024 while filing Form GSTR-1 for Jan, 24 may lead to its own sets of potential challenges in my view.

A. Considering that tax-payer had raised E-invoice dated 08.01.2024, I am presuming that he is falling into 'specified class of persons' who are bound to do so compulsorily as per Rule 48(4) of CGST Rules, 2017.

A1. As per Rule 48(5), if such specified class of persons do not issue E-invoice, then, invoice otherwise issued by him (i.e. without obtaining an Invoice Reference Number by uploading information contained therein on the Common Goods and Services Tax Electronic Portal) will not be treated as invoice under GST law.

A2. One of the conditions to avail ITC by the recipient tax-payer in given situation is that 'he is in possession of a tax invoice or debit note issued by a supplier registered under this Act' as per Section 16(2)(a). It is worth noting that this condition is in addition to condition that 'the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under section 37u/s 16(2)aa).

A3. In other words, mere availability on invoice-details in Form GSTR-2B at the recipient's end is not sufficient to take ITC in absence to having valid e-invoice issued by the supplier in given situation.

A4. If supplier chose to 'Changing / modifying E-invoice dated 08.01.2024 while filing Form GSTR-1 for Jan, 24' (instead of 'Issuance of Credit-note u/s 34 and then, fresh e-invoice showing inter-state sale & correct showing correct particulars including IGST payable, which is my suggested course of action in my post at Sr. No. 2 above), it means that supplier failed to issue 'Invoice under GST Law' to the recipient and the recipient will not be to fulfill condition u/s 16(2)(a).

A5. This in-turn may lead to denial of ITC to the recipient. This was my primary concern while positing conflicting view in my earlier post.

B. Another, though to a smaller extent, concern I have (i.e. if supplier chose to 'Changing / modifying E-invoice dated 08.01.2024 while filing Form GSTR-1 for Jan, 24' instead of process suggested by me) is that there will be mis-match in sales shown by the supplier through e-invoice and sales reported in Form GSTR-1. This may lead to needless inquiry against the supplier by Dept. in future.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Sadanand Bulbule]

Dear Amit Sirji

I am delighted to appreciate your fair and clear reaffirmation of the legal position with additional thoughts.

[KASTURI SETHI]

Now the concept is clear to me. I am highly thankful to Sh.Amit Agrawal, Sir. His penetration into the query and its remedy has really enlarged my horizon of knowledge.

[KALLESHAMURTHY MURTHY K.N.]

Thanks to Amit Agarwal Ji

There is an obvious effort to explain the issue and it makes all angles of the consequences of GST Law.

[Sadanand Bulbule]

Dear all

This is possible when only one attains mastery over his mind and passions aspiring to elevate his conscious thoughts translating them into good actions.

[Sadanand Bulbule]

Moral of the discussion:

Words....

whether in voice

or invoice

must be correct when we speak, to avoid corrections later!

[KALLESHAMURTHY MURTHY K.N.]

Dear, All Learned Experts,

I wish to make the following submission for kind reference.

According to the User Manual para 6.2 for e-invoicing system under GST, the IRN option is provided to cancel an e-invoice generated within 24 hours only. Once IRN is generated it cannot be deleted. The part of the text of the User Manual cannot be reproduced without the permission of the NIC. Hence I have not reproduced the portion of the text of the user manual while answering the query.

The fact can be verified from the User Manual released on 18-05-2022.

With respects,

This is for knowledge purposes and not statutory bearings.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

I concur with your view at serial no.14 dated 16.1.24.

Incorrect invoice is invalid. An invalid invoice is invalid for all purposes i.e. whether e-way bill or ITC etc.

AI Summary

Client Issued Incorrect Invoice on GST; Experts Advise Credit Note Under Section 34 to Correct ITC Issues A client issued an incorrect invoice on January 8, 2024, charging the wrong GST for an interstate supply. The e-invoice cannot be canceled after 24 hours, and amendments are not allowed on the portal. Experts suggest issuing a credit note under Section 34 and creating a new e-invoice with correct details. Concerns were raised about the potential denial of Input Tax Credit (ITC) if the invoice is not correctly issued. The discussion emphasizes the importance of accurate invoicing to avoid complications with ITC claims and compliance with GST regulations.