The liability effect on differencial GST by amending B2B, Goods and Services Tax - GST

[Vasudevan Durairaj]

Can anyone explain that how the differential effect will fall on liability when amending an invoice GST value ( by changing rate of GST)

Say for example. An invoice of Oct-17 has been charged with 28% wrongly instead of 18%, In Jan 18 ,I have given a credit note to the customer for the GST value difference

How can I show this in GSTR 1 .. Can it be shown in B2B amendments...? Will it be ok at par with GSTR 3B Jan 18 in which I had taken only tax effect and not on taxable value since the difference is only on rate of GST..

Can anyone explain the practicality on this matter...??

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Section 34 (1) and (2) of CGST Act, 2017 stipulates that-

34. (1) Where a tax invoice has 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 a credit note 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.

I hope the above provisions will clear your doubt. In my opinion the above provisions will apply only in B2B transactions. If you supply to C he will not bother about the correctness of the duty rate for the reason his accounts are not going to be audited by the Department. Only in the case of B2B transaction the Department will audit the accounts and point out the discrepancy in the rate of duty and thereby allege the receiver of goods/services has availed excess credit.

[Vasudevan Durairaj]

Thanks for the clarification..!

Still my doubt is that we cannot issue credit note just for tax portion and there must be taxable value for it

So adjusting the liability of the current period in GSTR 3B to the tune without having one-to-one relationship with taxable value and amending the tax portion of the said invoice in B2B amendment of current period is the only possible way to correlate GSTR 3B and GSTR 1..

Is it so...?

[Ganeshan Kalyani]

In case of B2C there is no issue as you show only the summarised liability where you can easy adjust and file the return.

[Alkesh Jani]

Sir, The amendment of Invoice(s) can be made in GSTR-1. As per the advisory issued, the aggregate tax paid should be equal to or greater than the liability shown.