GSTR 1 and 2B in case of wrong filing by the party

[Ramanathan Seshan]

Dear Experts,

I'm seeking your help to attain clarity:

Consider a situation where Mr. A, a GST-registered vendor, has two GST-registered customers: B (an existing customer) and C (a new customer). During the onboarding process of C, Mr. A mistakenly entered B's GST number in the system for C.

Now, let's consider the following:

1. In January, Mr. A did not make any sales to B but made an IGST tax value of Rs. 100 to C. Due to the error during onboarding, Mr. A filed his GSTR-1 under B's name instead of C's. What steps can Mr. A take to correct this mistake in his GST returns?

2. In the same month (January), B's GSTR-2B shows the invoice. Should Mr. A permanently reverse the Rs. 100 in 4B(1), or should he adjust it by reducing Rs. 100 in 4A(5)? Also, if B’s total ITC in 2B is Rs. 500, should Mr. A only report Rs. 400, knowing that Rs. 100 of the ITC is not valid for him?

3. Can Mr. A issue a credit note for the above, to correct the error and report it in the CDNR section of his GSTR-1 in the following month regarding B?

4. Suppose Mr. A made an IGST tax value of Rs. 200 to Mr. B. What actions should Mr. A and Mr. B take in terms of GSTR-1 and GSTR-2B reporting and further course of action

Regards,

S Ram

AI Summary

Vendor Seeks Guidance on Correcting GST Number Entry Errors and Ensuring Accurate Tax Reporting Compliance A GST-registered vendor mistakenly entered an incorrect GST number during customer onboarding, leading to complications in tax filing. The vendor seeks guidance on correcting GSTR-1 and GSTR-2B entries, including potential invoice amendments, credit notes, and proper reporting of interstate tax transactions to resolve the systematic error and ensure accurate tax compliance.