TaxTMI 
TaxTMI 
Credit note in case of supply fall under RCM
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....redit note in case of supply fall under RCM<br> Query (Issue) Started By: - milan bamal Dated:- 20-5-2026 Last Reply Date:- 27-5-2026 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>Dear team I had issued a sale invoice under RCM, also generated the e-invoice but the taxable value was reported higher by mistake in GSTR-1 of April 26. How can I reduce/correct it? Can a credit no....
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....te be issued for supplies covered under Reverse Charge Mechanism (RCM)? Or anything else Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, You can use Form GSTR-1A to rectify the RCM turnover wrongly reported if GSTR-3B is not filed. The corrected values will flow into your GSTR-3B for the respective month. If you have already filed the GSTR-1, you can amend it in a subsequent month.....
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.... Open the GSTR-1 return for April 2026 in the GST portal, select Table 4B - Supplies attracting reverse charge (Amendment) and fill the required field appearing therein, effect changes and submit. Reply By YAGAY andSUN: The Reply: Yes. A credit note can be issued even in respect of supplies liable to Reverse Charge Mechanism (RCM), provided the original taxable value or tax charged ....
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....exceeds the correct amount. Section 34 of the CGST Act does not carve out any exception for RCM supplies. Since the excess taxable value was reported in GSTR-1 due to an error, you may issue a GST credit note for the differential amount and report the same in the subsequent GSTR-1 within the prescribed time limit. Corresponding adjustment may also be reflected in GSTR-3B. Since tax under RCM is pa....
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....yable by the recipient, the commercial correction through credit note remains legally permissible. However, because an e-invoice has already been generated, the correction route depends upon timelines. If the IRN cancellation window (presently 24 hours) has expired, the original e-invoice cannot be cancelled. In such case, issuance of a proper GST credit note linked to the original invoice is t....
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....he correct statutory mechanism. Care should be taken that the recipient correspondingly reverses excess RCM liability/ITC, wherever already accounted for. Mere amendment in GSTR-1 without documentary backing is not advisable where an IRN-backed invoice already exists. Reply By Sadanand Bulbule: The Reply: Replies are welcomed. Reply By Ryan Vaz: The Reply: Yes, a credit note can be issue....
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....d even for supplies covered under RCM if excess taxable value was originally invoiced/reported. However, the correct course depends on where the mistake occurred: Situation Recommended Action Invoice itself incorrect Issue GST credit note Invoice correct but only GSTR-1 wrongly reported Amend/adjust through GSTR-1 amendment table E-invoice incorrect Credi....
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....t note generally advisable If the taxable value in the actual invoice was also excess, then issuing a credit note is the safest and cleanest approach. Reply By Kashish Gupta: The Reply: To correct an inflated taxable value reported in GSTR-1 of April 2026, three remedies are available. First, if GSTR-3B is not filed, said value can be amended through Form GSTR-1A of April 2026. Secondly, a....
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....ssuming GSTR-3B has already been filed and the GSTR-1A window is closed, the correction must be carried forward by reporting an amendment to the original invoice in Table 9A of the subsequent month's GSTR-1 (i.e., May 2026 GSTR-1), which allows the supplier to report the revised taxable value. The differential will reduce the output tax liability accordingly. The time limit for such amendments....
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.... is 30th November of the succeeding financial year or the date of filing of the annual return (GSTR-9), whichever is earlier. Thirdly, on the specific question of whether a Credit Note can be issued for an RCM supply: yes, it can be issued where the e-invoice has already been generated and the cancellation window (typically 24 hours on the IRP) has lapsed. A credit note linked to the original R....
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....CM invoice must be issued under Section 34 of the CGST Act for the excess taxable value and the IRN for the credit note should also be generated on the IRP since the original transaction was e-invoiced. Reply By Shilpi Jain: The Reply: Better to issue a credit note since e invoice is already generated. Issue the proper invoice by selecting liability under RCM and proper disclosure in the r....
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....eturns. It is coming out that the e invoice itself has the wrong higher amounts which is why GSTR-1 has a higher figure<br> Discussion Forum - Knowledge Sharing ....