We had issued a genuine credit note to the recipient. However, the recipient has rejected the credit note in IMS. Due to this rejection, the value got added back to our output tax liability in GSTR-3B, and we have already discharged the tax liability accordingly.
In this situation, kindly guide us on:
- What remedies/options are available to the supplier?
- Any legal provision or CBIC clarification applicable in such cases?
Expert guidance will be highly appreciated.
Credit note rejection in IMS and discharged tax in GSTR-3B: remedies and reconciliation options for suppliers outlined. Issue concerns treatment where a supplier issues a valid credit note but the recipient rejects it in the Invoice Management System (IMS), causing the supplier to reverse the reduction and discharge the corresponding tax in GSTR-3B. Relevant legal focus includes treatment of credit notes under GST invoicing and return framework, interaction between IMS acceptance and reporting obligations in GSTR-1/GSTR-3B, and available administrative remedies or clarifications by CBIC addressing reconciliation and adjustment. Operative effect: until recipient acceptance or corrective reconciliation under return amendment procedures or applicable CBIC guidance, the suppliers discharged tax stands and adjustment depends on procedural rectification or prescribed administrative remedy. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
