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Adjustment of Negative liability arised from Sales Return

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Abhishek Savant

Self Employed

1 Points Posted on 02 April 2023

I had a b2b sales return of Rs.1,42,000 in October 2022. Accordingly a credit note was issued and filled in GSTR1.

Though since then my outward sale has been very low to adjust in GSTR3B. Hence I have been adusting that credit note in subsequent months of Nov, Dec & so on.

Now after March 2023 there is still Rs.90,000 left to be adjusted. Can I keep adjusting it in next financial year 23-24 in Returns of April, May and so on? Or will I have to claim a refund?

Replies (2)

Quick Summary

This discussion addresses how to handle a significant B2B sales return credit note when outward sales are low. The user can continue adjusting the remaining credit note amount in subsequent GSTR-3B filings until the due date of the October 2023 return or the annual return filing date, whichever comes first. Alternatively, a refund can be claimed as per GST Circular 137/2020.