Reversal of invoice dated FY 21-22 in FY 22-23

[Aeka Team]

One of the customers missed the accounting of tax invoices related to FY 21-22 in their books, and now they are requesting us to reverse those invoices in the current period in our books and re-raise the invoice. Please advice if the same is possible as per GST provisions

[Raam Srinivasan Swaminathan Kalpathi]

Credit Note can be issued under provisions of Sec.34(1) and 34(2)r w r 53provided

either there is a difference in the rate or goods mentioned are returned or where goods or services supplied are found to be deficient. None of the conditions mentioned are present. Also the last date for issue of credit note shall be 30th day of November of the subsequent year.

Your customer is bound to loose the ITC.

[Shilpi Jain]

You can re-raise but you cannot adjust the GST that you had paid earlier. You may have to pay GST again which would be a cost to you.

[Padmanathan KV]

I agree with RaamSrinivasan Sir in toto. This is not a situation prescribed for raising credit note. Further the time limit also seems to be over in this case.

AI Summary

Customer's Request to Reverse and Reissue Tax Invoices Denied Due to Non-Compliance with GST Sec. 34(1) & 34(2) A customer failed to account for tax invoices from FY 21-22 and requested a reversal and re-issuance in FY 22-23. Three responses address this under GST provisions. The first response highlights that issuing a credit note is not applicable as the conditions under Sec.34(1) and 34(2) are not met, and the deadline for such action has passed. The second response suggests re-raising the invoice but warns that the GST paid earlier cannot be adjusted, leading to additional costs. The third response agrees with the first, emphasizing the inapplicability of a credit note and the expired timeframe.