16 April 2019
We have received the debit notes in march`2019 for the supply(s) made by us till Dec`2018. We are in monthly return mode in GST. The issue which i am facing is that we have NIL Sale in the March`19 so debit note we shall be passed through GSTR 1 with ease but problem with GSTR-3B coming because of negative figure which is not accepting in GST 3B. The companie(s) from which we had received the said Debit Note is showing all the debit notes in March`19.
Now mismatch will arise in our balance sheet / Ledger VS companies balance sheet / Ledger if we file the same in April`19 & if we file same in mar`2019 then mismatch will come in our GSTR 1 & GSTR 3B because of the same un-acceptable negative figure in GSTR 3B.
Kindly tell us how to handle this situation in accordance with the law of GST.
As per section 34 of CGST Act – A supplier can issue Debit / Credit Note . If supply made by you , You only need to issue Credit Note ( Recipient can not issue Debit Note)
It may be noted that while making adjustment in the output tax liability or input tax credit, there can be no negative entries in the FORM GSTR-3B.
The amount remaining for adjustment, if any, may be adjusted in the return(s) in FORM GSTR-3B of subsequent month.
Where adjustments can not be made in FORM GSTR-3B of any month , corresponding adjustments in FORM GSTR-1 should also preferably be made in the corresponding months
Hence , it is advisable to account for Credit Note in the month of April 2019 .
Further , The details of the credit note relating to outward supply furnished by the supplier for a tax period shall, be matched with the corresponding reduction in the claim for input tax credit by the recipient in his valid return for the same tax period or any subsequent tax period;
Discrepancy , if any shall be added to the output tax liability of the supplier in his return for the month succeeding the month in which the discrepancy is communicated
Thus mismatch in your Balance Sheet & other Company Balance sheet can also be corrected in April 2019