Credit notes for cancelling export service invoice

This query is : Resolved

K.R.VAIDYANATHAN

K.R.VAIDYANATHAN (Querist)
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30 April 2020 I had billed overseas party for services given in January 2020. The same has been incorporated in Janaury 2020 in GSTR 1 and 3b. These are zero rated bills under LUT. Due to covid 19 it is doubtful whether payment will be received., since my export income will be reduced. The same can be amended in GSTR 1 in March 2020, but how to reduce the same in 3b since it does not take negative figures. i may not get export orders for next 6 months due to covid -19. Please suggest suitable alternative since 3b cannot be amended.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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30 April 2020 As export was done under LUT no tax was payable. The taxable value in GSTR-3B cannot be reversed if there is no further sale in near future. At the best you can amend GSTR-1 and show the correct position in your GST Annual Return.
However rule 96A is also to be taken into account. And writing off debtors of foreign currency are matters related to FEMA and RBI regulations. They also have to be complied.

PAWAN KUMAR

PAWAN KUMAR (Expert)
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01 May 2020 Credit note should issue and report in gstr-1 of the month in which it is issued. In case of any future export, adjust the credit note amount in gstr-3b. You may also quote in filing of annual return as export turnover net if credit note but shown in gstr-1.

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