GSTR1 AND GSTR3B Difference

[Praveen Kumar]

GSTR-1 credit note not uploaded and GSTR-3B filed correctly rectified in GSTR-9 and GSTR-9C

There is no revenue loss govt

[Shilpi Jain]

Reduction of tax liability in case of discount also requires the recipient to reduce his ITC.

Non-disclosure in GSTR-1 would not provide clear picture to department on this aspect.

Thus may not be a completely revenue neutral situation.

Though if you can get a certificate or a declaration from recipient that ITC was reversed, possibility to get something favourable at Tribunal level!!

[Padmanathan KV]

Fully agree with Shilpi Ma'am. This issue is litigiuos 

[VIPUL JHAVERI]

Filing GSTR-1 reflects in 2B for buyer and he may avail full ITC, so unless buyer sends his Debit Note to Seller Reversing ITC charged to him, seller liability never reduces with his own Credit Note - So unless buyer Debit Notes on record difficult to pass through for reduced liability declared in 3B and then on 9 & 9C - Try and get on reocrd buyer Debit Note to sail through with ease.

AI Summary

Input tax credit reversal requirement can prevent seller relief when credit notes are omitted from outward returns. Sellers reducing declared tax in GSTR 3B without uploading corresponding credit notes in GSTR 1 can create a mismatch because recipients must reverse their Input Tax Credit; non disclosure in GSTR 1 obscures the record and may jeopardize a revenue neutral position. A recipient declaration or buyer debit note evidencing ITC reversal strengthens the seller's case for reconciliation across returns and may affect tribunal consideration, but the issue is litigiously contested.