GSTR-1 Wrong Filed

Hi Sarathy,

Thank you for the detailed query — you're clearly tracking the GSTR-1 filing sequence carefully. Let's break it down and address your main concern:

📌 Summary of Events (Chronologically):

1. Dec 2021 – An invoice was incorrectly marked as "Supply Attracting Reverse Charge" in GSTR-1.

2. Jan 2022 – Amendment was made, but again marked as reverse charge (same as Dec).

3. March 2022 –

   • A regular invoice (correct type) issued for the same value.

   • A credit note was raised against the Dec 2021 bill (now correctly tagged as a regular supply).

   • Both entries (March invoice and credit note) were filed in GSTR-1 — making it a contra transaction.

4. June 2022 – The credit note was amended and marked as reverse charge.

❓ Your Main Question:

Is the customer eligible to claim ITC of the March 2022 invoice, considering all these adjustments?

✅ Short Answer:

Yes, your customer should be eligible to claim ITC on the March 2022 regular invoice, provided:

• The invoice is not marked as reverse charge in your final GSTR-1 (March return).

• The credit note (amended in June) doesn't reduce the customer's ITC erroneously by marking it under reverse charge, as RCM supplies don’t allow ITC to recipients.

⚠️ Things to Double Check:

1. ✅ In March 2022 GSTR-1, the invoice must be shown as a regular supply, not reverse charge.

2. ⚠️ The credit note, which was later amended (June) as reverse charge, may create confusion.

   • If the credit note reverses the ITC because it's under RCM, it can lead to mismatch in GSTR-2A/2B of the customer.

   • This may result in ITC not reflecting in the customer’s system or being flagged in assessment.

📝 Recommendation:

• Consider revising the credit note again, or issuing a new corrected credit note that reflects proper supply type (i.e., not RCM).

• Communicate with the customer and check their GSTR-2B for March — if the invoice appears correctly, they can safely avail ITC.

• If there’s a mismatch, a proper reconciliation or clarification may be required during assessment or audit.

📩 Suggestion:

You may also write to the GST helpdesk or consult with your jurisdictional officer if system corrections are not reflecting properly.