GST outward tax liability increase

To adjust the tax paid on a rejected e-invoice, you must report a GST Credit Note in Table 9B of your GSTR-1, regardless of the client's internal system rejections. This will automatically reduce your outward tax liability in the corresponding month's GSTR-3B. If the reduction exceeds your current month's liability, the negative balance can be carried forward to set off future taxes. Keep written proof of the client's rejection to prove they did not claim the ITC.