VAT Monthly returns - reg,

This query is : Resolved

ashok (Querist)
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11 September 2008 Doubts in VAT returns – we are submitting VAT 200 every next month 15th day, for July 31 we raised 5 invoice but one is approved in time (August before 15th ) reaming invoice are approved after the submission of VAT 200 monthly returns – How can I show that balance invoice in VAT returns? (Should I submit revised VAT returns for July or shall I take that balance 4 invoice in this month VAT Returns August month. (Our sales are completely exempted sales so we are not paying sales tax) Please suggest.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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16 September 2008 Do you want to say that your sale is completed only when the same is approved by your cutomer?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 In your case—where **sales are exempted** and **some invoices for July were approved only after filing the July VAT 200 return**—here’s how to handle it:

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### ✅ Best Practice under VAT Compliance:

Since you're dealing with **exempted sales**, and **no VAT is being paid**, the risk is lower, but proper reporting is still essential for audit/compliance purposes.

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### 🔍 Your Two Options:

#### **1. File a Revised Return for July**

* **Recommended if** your state VAT authority allows revision of VAT 200.
* File a **revised VAT 200 for July**, including all 5 invoices.
* This keeps your records accurate and tied to the correct tax period.

✅ *Most compliant method.*

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#### **2. Include the Remaining Invoices in August Return**

* If **revised return is not permitted**, or if the approval system aligns with invoice recognition upon approval:
* Report the 4 pending invoices in the **August VAT 200 return**.

⚠️ **Note:** Add a remark in the return or maintain a working note explaining that the invoices relate to July but were approved in August, hence included now.

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### ⚠️ Check with Your Local VAT Authority:

* **State-specific VAT laws** (especially before GST era) may **vary on invoice timing recognition** (invoice date vs. approval date).
* If you're in a state like **Tamil Nadu, Andhra Pradesh, or Karnataka**, it's good to check departmental FAQs or guidance.

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### ✅ Summary Recommendation:

| Scenario | Action |
| --------------------------- | ----------------------------------------------- |
| Revised returns allowed | File **revised July VAT 200** |
| Revised returns NOT allowed | Include in **August return** with note |
| Sales are exempted | No VAT payable, but ensure proper recordkeeping |

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If you tell me the **state** in which you're registered, I can give you more specific guidance based on that VAT department's procedures.

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