Adjustment of GST through Debit Note

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This discussion addresses how to handle GST adjustments for sales returns when a debit note's GST amount exceeds the current month's output tax liability. The advice given is to adjust the balance GST amount pertaining to the debit note in the following month (April 20), even though it crosses the financial year boundary. It's also confirmed that you can show a Nil value in the 'Taxable turnover' column of Table 3.1 in the 3B return if the entire GST payable is adjusted against the debit note.

Gopalakrishnan. S

Gopalakrishnan. S (Querist)
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22 June 2020 Sir,

We are yet to submit the March 20 3B return.

We have received a debit note from our customer towards sales return in March 20 and the total GST amount involved in that debit note exceeds the output tax payable by us for that month ( without adjusting the ITC ). Shall we adjust the balance amount of GST pertaining to the Debit note in the Month of April 20, since the Financial year changes ?

Further, If we adjust the entire GST payable through 3B return against the debit note, can we show Nil value in the Table No. 3.1 in the 3B return, under the " Taxable turnover " column ?

Pls. advice.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 June 2020 Yes, adjust the balance amount of GST pertaining to the Debit note in the Month of April 20.
Yes, you can show Nil value in the Table No. 3.1 in the 3B return, under the " Taxable turnover " column.

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Gopalakrishnan. S

Gopalakrishnan. S (Querist)
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23 June 2020 Thank you very much Sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 June 2020 Welcome.................

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