Credit note in case of supply under rcm
This query is : Resolved
20 May 2026
I had issued a sales invoice under RCM and also generated the e-invoice, but the taxable value was reported higher by mistake. How can I reduce/correct it? Can a credit note be issued for supplies covered under Reverse Charge Mechanism (RCM)?
21 May 2026
Legality: A supplier can legally issue a GST Credit Note under Section 34 for transactions falling under the Reverse Charge Mechanism (RCM) if an excess taxable value was reported by mistake.
Correction Rule: If the e-invoice is older than 24 hours, it cannot be cancelled. The supplier must issue a fresh GST Credit Note, generate its corresponding e-invoice, and declare it in Table 9B of GSTR-1 (or amend the original entry via Table 11 in a subsequent month).
Recipient Action: The buyer/recipient must decrease their RCM tax payment and proportionally reverse any excess Input Tax Credit (ITC) claimed on the incorrect higher value.
Correction Rule: If the e-invoice is older than 24 hours, it cannot be cancelled. The supplier must issue a fresh GST Credit Note, generate its corresponding e-invoice, and declare it in Table 9B of GSTR-1 (or amend the original entry via Table 11 in a subsequent month).
Recipient Action: The buyer/recipient must decrease their RCM tax payment and proportionally reverse any excess Input Tax Credit (ITC) claimed on the incorrect higher value.
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