notice u/s 73 converted to 74

[FARIDUDDIN AHMAD]

Assesses is carrying business of work contract, during the F.Y-2023-24 in the month of nov and Dec 2023 issued invoice to his vendor for taxable valueRs-6,70,968.69 tax Rs-1,20,774.36/-(CGST+SGST) and taxable value Rs- 67,15,362.20 and tax 12,08,675.18/-(SGST+CGST) and declared in GSTR-1 and paid the tax through GSTR-3B returns of Nov and Dec-2023. Later in the month of feb 2023 vendor rejected the invoices for the reason that time limit to process the bills within 60 days was over. Consequent to rejection of said bill Assesses in feb 2023 issued credit not of tax Rs-13,29,449.54(CGST+SGST) issued to vendor, which resulted in NIL outward tax liability for feb 2023 in GSTR-3B with debit balance of Rs-1,20,0698.30/-(net of total outward liability-credit not) reflected in GSTR-1. Can we adjust this balance debit balance

[FARIDUDDIN AHMAD]

kindly ignore subject mention as notice u/s 73 converted to 74 read it as regarding tax value of credit note in GSTR 1 exceeds the outward liability of the month. 

[Shilpi Jain]

This can be adjusted in case tax was paid excess in nov. 

However in case tax is payable then suggested to issue the new invoice for the said customer. In this case there will be no excess tax payment available for adjustment

[Ganeshan Kalyani]

You can adjust it in subsequent GSTR-3B by showing less GST payable.

AI Summary

GST credit note adjustment allowed where tax was previously paid; otherwise issue fresh invoice or reduce tax in next return.
Where tax on the original invoices was already paid in earlier GSTR-3B returns, the taxpayer may adjust the credit note by showing reduced GST payable in a subsequent GSTR-3B; if the tax was not paid previously, adjustment is not available and a fresh invoice should be issued because there is no excess tax to absorb the credit.