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Raju Roy (Accountant )     10 May 2021

Sale Invoice Raised but Goods not Sent

Respected Sir / Madam,

We have raised Sale Invoice for sending goods to a customer against Advance received, in September 2020, but unfortunately material not sent and Advance money was refunded to customer and order was canceled accordingly.
At present, how can I adjust or reverse the liability because GSTR 1 also filed in October 2020. As on March 2021, Debtor's Balance is reflected in our books.
Kindly advise.


 6 Replies

Sourav

Sourav (Student)     10 May 2021

Amend the advance in the next return in that month you have noticed the default
Manjunath L Bellubbi

Manjunath L Bellubbi (CA)     10 May 2021

As per GST advance on goods doesn't attract gst.
However you have raised Invoice and filled gst too. Now you can Generate Credit note to the extent full invoice value.
As per Debtors account concern Credit Bank/cash account for refund of advance.
So that your sale get adjusted with sales return and advance get adjusted with refund.
1 Like
Raju Roy

Raju Roy (Accountant )     10 May 2021

Hi Manjunath Sir,

How can I raise Cr. Note. Because it is already 6 months over and I am not getting Reversal of liability in Apl 21 3B.
Pls advise.
Manjunath L Bellubbi

Manjunath L Bellubbi (CA)     10 May 2021

Yes you are not allowed to raise credit note.
Since sales made before 6months you have 2 option.

1) If sold to Registered person
Return is considered as deemed Supply in the hands of Buyer. In order to keep process simple just just get invoice from buyer and claim ITC.

2) If sold to URP
You have to show in amend table 10.You will lost your ITC.
anil jain

anil jain (Partner)     12 May 2021

Pl read the related provision, there is no limit of six months

34. Credit and debit notes.— (1) [Where one or more tax invoices have]60 been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient [one or more credit notes for supplies made in a financial year]61 containing such particulars as may be prescribed. (2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed:

Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person. (3) [Where one or more tax invoices have]62 been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient [one or more debit notes for supplies made in a financial year]63 containing such particulars as may be prescribed. (4) Any registered person who issues a debit note in relation to a supply of goods or services or both shall declare the details of such debit note in the return for the month during which such debit note has been issued and the tax liability shall be adjusted in such manner as may be prescribed. Explanation.––For the purposes of this Act, the expression ―debit note‖ shall include a supplementary invoice.

Raju Roy

Raju Roy (Accountant )     12 May 2021

Thanks

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