GST--Credit note (non Acceptance by the buyer)

[DK AGGARWAL]

Dear Expert

What will be the concequences if C?N not accepted by the party in IMS. As per exeple below

ABC company supply good  Ex Delhi charging IGST @18% to  party XYZ at Kanpur UP., but the party XYZ do not accept the goods being wrong supply and do not take delivery from  transport. The goods are returned to  Delhi to ABC. 

IN the meantime the GST-1 is filed and a  Credit Note is issed to adjust the wrong supply as Invice cannot be cancelled being more than 24 hours and EWay bill issued.

The Buyer XYZ do not accept the Invoice and Credit Note in IMS system.  But as per system of  IMS if the credit note is not accepted by the party it will increase our liability in 3B to pay tax in system.

Please guide how to adjust the tax payable of C/N.

Regards

D Aggarwal

AI Summary

Credit note acceptance: unaccepted CNs can increase GSTR-3B liability; seek amendment, invoice nilification, or manual correction and notification.
When a recipient does not accept a credit note on IMS, the supplier's system liability may still show increased tax payable in GSTR-3B. Practical remedies include securing recipient acceptance of an amended CN with a No ITC Reversal option, adding the CN in the IMS amendment table in the next month, amending the invoice to nil supply, or manually correcting GSTR-3B and documenting explanations; escalation via the GST portal or departmental helpdesk is also suggested.