Query on Mismatch of Sales Invoice in GSTR-1

This query is : Resolved

Ramit (Querist)
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03 November 2025 Sales invoice raised in july 2025 and issued to customer. Value of Invoice is 18,70,300/- (15,85,000/- (basic)+2,85,300/- (GST)) but due to delay in payment by customer we have not shown this invoice in GSTR-1 of July 2025.

In august basic payment received from customer i.e 15,85,000/- and he hold GST Payment.
Due to make our GST Compliance accurate we cancelled this invoice and reissued a new invoice in august 2025 and shown in GSTR-1 of august 2025.

When we take follow up from customer to release balance gst payment, he raised a query that there is mismatch as invoice shared by you (july 2025 invoice) and the invoice (august 2025) shown in GST Portal. Then we reply him that due to our internal error we unable to file july 2025 invoice in GSTR-1 of July 2025. Kindly consider the august 2025 invoice and release our GST Payment.

Customer reply us that he already booked the july 2025 in his system and partial payment has been released against this invoice, therefore we cannot accept the august 2025 invoice.

So he wants the july 2025 invoice in GST Portal only then he will release our balance payment
We trying to convince him but he does not agree. Now my questions are-
1. Is it possible if we show july 2025 in october 2025 GSTR-1 and we will make credit note against august invoice in october 2025 and mention in return so that balance will be nil in GSTR-1 october.?
2.If yes, will we have to pay interest also and how to calculate that interest?.
3.If we only show july 2025 in october 2025 GSTR-1 and not pay interest and file october GSTR-1
then what will happen?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 November 2025 Yes, you can show the July 2025 invoice in October 2025 GSTR-1 and issue a credit note against the August invoice to rectify the mismatch, ensuring the balance in GSTR-1 for October is nil.
Interest will be applicable for the delayed reporting and payment of GST, as the tax on the July transaction wasn't declared or paid in the correct month, and thus the government's funds were held by you for a longer period. Interest is generally calculated from the original due date (July 2025) to the actual payment date (October 2025), unless the e-cash or e-credit ledger had sufficient balances at the original filing date, in which case interest may apply only to the net liability.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 November 2025 Steps for Resolution with Customer
File October GSTR-1 correctly by declaring the July invoice and reversing the August one with a credit note, referencing both invoices on the portal.

Communicate the legal compliance and show the reconciled invoice in the portal for the customer’s records; they can then book the ITC based on the correct invoice month.

Pay any applicable interest for delayed tax declaration and payment to avoid future penalties.

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