Credit Notes on GSTR-3B & GSTR-1

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RSANDCO

System Admin

30 Points Joined February 2014

Dear Sirs, One of my client, for the month of Mar-20 & Apr-20, NIL Returns have been filed due to COVID-19. Now during May-20, he issued some credit notes against original invoices which have been raised during Dec-2019, Jan-2020 and Feb-2020. There is no invoice raised during May-20 and only the said credit notes have been issued due to COVID-19. Now, I have to claim the credit note amount which have been returned to customers by my client. I could not be claimed by way of deduction of credit note amount from sales amount. How can I filed 3B return for May-20 and claim the credit note amount. If I Net the Sales and Credit Notes, the negative figure has been arrived.

Kindly clarify the same. Thanking you Sirs, in advance.

Replies (3)

David

article Assistant

1644 Points Joined July 2016

Hlo,
In my opinion, value of credit note can be only adjust from the taxable outward supplies... Here in this case you have not made any supplies in the month of may.. So please file 3B as nil return.. And show credit note in GSTR 1 in the month of may itself.... And Subsequently adjust the credit note in the month in which you have outward supplies.

RSANDCO

System Admin

30 Points Joined February 2014

Thank you sir.

But as all the credit notes are pertaining to B2C Small invoices, I could be entered the same in GSTR-1 Returns. There is only available for B2C Large Invoices ONLY.

David

article Assistant

1644 Points Joined July 2016

In my opinion, B2C small supplies to be shown as net of sales return. Since there is no other way to show the credit note of B2C small invoices... So here due to no outward supplies, it will not possible to show it... So please shown it in subsequent month... File GSTR 1 of May without making adjustments to credit note B2C small supplies.