Invoice issued at wrong GSTIN which is now cancelled

[Rajat Gupta]

My client issued an invoice dated 26.05.2026 and reported it in GSTR-1. Soon after, he realised it was issued against the old GSTIN of the buyer. When I tried to amend the value of invoice, the portal restricts saying 'GSTIN of the recipient is cancelled'. Neither does portal allow reporting of credit note against that invoice.

Since it is an intra-state B2B transaction, I am also unable to report CN under B2C. My Client does not have any B2C supply. How can I tackle this situation and reduce the tax liability in the returns?

[Sadanand Bulbule]

Section 34 of the CGST Act does not prohibit issuance of a credit note merely because the recipient's GSTIN has been cancelled; the restriction is only a GST portal validation. Accordingly, issue a manual credit note and a fresh invoice to the correct GSTIN, and seek GSTN/jurisdictional officer intervention (or refund under Section 54, if required) to give effect to the tax adjustment.

Consult the experts.

[Rajat Gupta]

Thank you Sir. I appreciate your analysis and thoughts. Will explore this option if anything else doesn't work. Getting a refund from the department is really a headache in such matters

[Sadanand Bulbule]

True. Refund is miarge.

AI Summary

Wrong GSTIN invoice reporting creates portal barriers to amendment and credit note correction for intra-state B2B tax liability reduction. The issue concerns rectification of an invoice reported in GSTR-1 under the buyer's old, cancelled GSTIN. Portal validation blocks amendment of the invoice and also prevents reporting of a credit note because the recipient registration stands cancelled. Since the transaction is an intra-state B2B supply, the credit note cannot be reclassified under B2C. The query focuses on the procedural difficulty of correcting the reporting error and regularising the return position so that the related tax liability can be reduced.