Professional
23 Points
Joined December 2015
GSTR-1 : B2B Invoice submitted as B2C. How to rectify ?
A common query from taxpayers is what happens if a B2B Invoice is recorded as B2C?
This can happen because of any of the following reasons:
• Purchaser has not submitted GSTIN .
• Purchaser has submitted GSTIN, but it is not recorded in Accounting System
• Purchaser has applied for GST Registration, but has still not received GSTIN
In this case, an Invoice with GSTIN will be reported as B2C ( Either B2CL or B2CS ) transaction.
Sales Data for July

How to rectify it in subsequent Return?
Scenario 1
In this scenario, Purchaser adds the invoice in their respective GSTR-2. Based on GSTR-2, Seller gets details in GSTR-1A and accepts the same in July itself.
Now July Return will stand amended as follows:

As you can see this results in over reporting of outward supplies as 3 transactions get added to B2B , but correspondingly B2C values are not reduced.
This can be done in the subsequent month.
Aug Return

Based on this the August Liability will get reduced by Rs. 5,400.
Scenario 2
In this scenario, Purchaser does not take any action in GSTR-2 and requests Seller to rectify the mistake in subsequent return.
In the above example, when subsequently out of 10 B2CS purchasers , 3 provide GSTIN, the following steps will have to be taken to give effect.
Aug Return

Thanks
Tarun Vema