Clarification on GST Credit Note Rejection and Return Adjustment

This query is : Open

Avinash Jeevan Dsouza (Querist)
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09 May 2025 We need your guidance regarding a situation where credit notes issued by us have been rejected by the recipients in the new GST Invoice Matching System (IMS). As a result, we have repaid the GST amount related to those credit notes.

We seek your advice on the following points:

How should this be correctly reflected in the upcoming GSTR-3B return?

Do we need to reverse the adjustment made earlier for the credit notes or simply add back the tax liability?

Is there a provision to rectify or delete the credit notes in GSTR-1, or should they be retained as originally filed?

Are there any additional compliance or reporting steps we must follow in such cases?

Your expert opinion will help us ensure accurate reporting and compliance.