TaxTMI 
TaxTMI 
Credit Note for 19-20 and 21-22 Invoice
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....redit Note for 19-20 and 21-22 Invoice<br> Query (Issue) Started By: - Pankaj Gupta Dated:- 23-1-2023 Last Reply Date:- 3-5-2023 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>I have a Custiomer who is not paying for my Invoice of 19-20 and 21-22. Can I raise a Credit note now and claim the ITC next month GSTR-3B? 19-20 there was no GSTR-9C requirement, 21-22 GSTR filed on Dec31-2022. C....
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....an we modify GSTR-9C once filed? Thanks and regards Pankaj Gupta Reply By Amit Agrawal: The Reply: Credit-notes u/s 34 (1) of the CGST Act, 2017 is the option given when 'the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or ....
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....both supplied are found to be deficient' and NOT for bad-debts. As you cannot issue credit-notes u/s 34 (1) in given circumstances, other facets of the query raised (i.e. time-limit u/s 34 (2), filing of GSTR-9 & 9C etc.) are irrelevant in my humble view. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Padmanathan Kollengod....
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....e: The Reply: Sub-section (2) of Section 34 prescribes a time limit for issuance of credit note. It is reproduced as under: (2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than the thirtieth day of November f....
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....ollowing the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed: Further, the proviso to Sub-section (2) provides that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such s....
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....upply has been passed on to any other person. In your case, since the time limit is also exceeded, credit note declared in returns and tax cannot be adjusted. Reply By Shilpi Jain: The Reply: Agree with the experts that time limit exceeded. Also that merely non-payment by customer cannot be a reason for issue of credit note. Can I raise a Credit note now and claim the ITC next month GSTR-3B E....
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....ven in case a credit note is issued where allowed, the tax liability has to be reduced from the outward liability and should not be claimed as credit' Also, no returns or statements under GST can be revised per say. Reply By Ganeshan Kalyani: The Reply: This is a bitter part that one need to pay GST even if the sale proceed is not received from the customer. You even cannot think of penalis....
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....ing customer by raising tax invoice for 'tolerating an act' because that will amount to outward supply and GST will have to be paid. It is a bad debt and when you debit it to P&L you can save your Income tax liability on the same. Reply By k.lakshmipati rao: The Reply: Further, the proviso to Sub-section (2) provides that no reduction in output tax liability of the supplier shall be per....
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....mitted, if the incidence of tax and interest on such supply has been passed on to any other person. In this case, who is the other person [is it buyer Taxpayer or other recipient] Reply By k.lakshmipati rao: The Reply: Further, the proviso to Sub-section (2) provides that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply....
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.... has been passed on to any other person. In this case, who is the other person [is it buyer Taxpayer or other recipient]<br> Discussion Forum - Knowledge Sharing ....