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Credit note

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Anshuman Basu

account -GST

1181 Points Posted on 04 March 2020

In the month of May 2019 we sale to party for Rs. 13,40,317/- + 204455/-(IGST) = Total Invoice value Rs 1340317/-.

In the month of February 2020 the party return the some part of the materials to us ( technical ground), accordingly we generate Credit note to party for Rs 739066/-+ 1,33,032/-(IGST) = Total credit note value is Rs 8,72,098/-.

In the month of FEBRUARY 2020 we have no business and I thinks March 2020 will be no business .

We have no Cash Ledger balance and no Credit Ledger Balance in our GST Portal and we have no GST Liabilities

Now question is-

1/How I adjusted the credit note amount for Rs 133032/-in our GSTR 1 and GSTR 3B?

Should we put in GSTR3B column no 4B (ITC Available) for Rs 133032/-

Please Guide us in this case

Replies (5)

Quick Summary

This discussion addresses how to adjust a credit note of Rs 8,72,098/- (including IGST) issued in February 2020 against an original invoice from May 2019. The user is concerned about adjusting the IGST portion of the credit note (Rs 1,33,032/-) in GSTR 1 and GSTR 3B, especially as they anticipate no business activity in February and March 2020. The consensus suggests adjusting the credit note against future sales rather than claiming it as ITC, as it doesn't appear in GSTR 2A and could lead to interest implications if not handled correctly.

sujith kumar dasa

banglore

988 Points Posted on 04 March 2020

As you are aware, negative figures for sales is not allowed for GSTR-3B, hence the credit note amount should be adjusted against sales of next month or the next month. You can wait for this amendment till September return of next year.

No you cant show the reversal amount as credit, this adjustment doesn't have any validity.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 04 March 2020

Yes... I agreed to Mr Sujith Kumar Dasa's view...

@ Mr Anshuman Basu.,

You can adjust the excess/balance values in Your next month Sales...

No need to show it as ITC...

Anshuman Basu

account -GST

1181 Points Posted on 04 March 2020

Sir Ji

I know, but problem is there will be no business for the month of February and March 2020 ( As per my Assumption ). and that is why we place a question to all expert what will do ?

What will do if business is not run coming few of month? if we claim the credit note amount as ITC then the same will by lying in our credit ledger

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 04 March 2020

Yes the same is showing Your credit ledger. But, it's not in GSTR 2A...
- Right...?!

Then it will must be reversible with interest...
- Am I right...?!