Whether output tax is taken credit by purchaser

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This query is : Resolved

D G MOHAN (Querist)

13 November 2026 We had issued invoice regarding sales incentive to a company and filed GSTR1 including that invoice. But company rejected the invoice 7 months later. What is the position of our output tax on them. How to check whether they have taken credit of that invoice or not. They have not rejected that invoice in IMS. How will they take account of that invoice when our output tax is already on their 2B

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

13 November 2026 Output Tax Status: Already declared via GSTR-1; cannot be altered via GSTR-1 amendment if the statutory deadline has passed.

Corrective Action: Issue a GST Credit Note if within the Section 34 time limit to claim a tax adjustment; otherwise, resolve commercially and ensure the buyer reverses the claimed ITC in their GSTR-3B if they refuse the invoice.

IMS Status: Since the buyer failed to reject it in the IMS, the system defaults to making it available, meaning any dispute must be settled via reconciliation and manual ITC reversal by the buyer.

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