Adjustment of Credit Note in GSTR 3B

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This discussion addresses how to adjust credit notes issued in December 2020 that couldn't be reported in the GSTR 3B due to the absence of intra-state sales. The primary challenge is that GSTR 3B doesn't allow negative figures for outward liability. While waiting for intra-state sales is an option, the financial year has closed. The advice is to adjust the credit note in the current financial year's books and report it in the April GSTR 3B return or a subsequent one.

Pragati Sharma

Pragati Sharma (Querist)

26 March 2021 Credit Notes were issued in December 2020 with CGST & SGST. Correct reporting was made in GSTR 1.

However, there was no intra state sale in the month of December 2020 hence no adjustment could be made in GSTR 3B because the outward lability column of GSTR 3B does not negative figures.

Now we will be filing return for March 2021. How to make this adjustment pending for GSTR 3B. We still did not make any intra state sale in March 2021.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 March 2021 Adjust it In April to September and report it in annual return for 2020-21.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

26 March 2021 1st option is to wait for any intra state supply 2nd option is to take credit instead of setoff with outward 3rd option is also to wait for negative figure accept in 3B.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 March 2021 Only 1st option available.

Pragati Sharma

Pragati Sharma (Querist)

30 March 2021 But Sir, the financial year closure as come. Whether i can adjust the credit note in next financial year?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

30 March 2021 Adjust the credit note in the current financial year in the books of accounts. In GSTR 3b adjust it in April return or after.

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