Cdnr not declared in gstr 1, Goods and Services Tax - GST

[ANUP BHATTACHARJEE]

Whether by not declaring cdnr in case on B2C supply can disallow such reduction of taxable value n tax component ? And ask the RTP to claim refund of tax paid .

Posts / Replies

[Amit Agrawal]

Kindly refer to discussions held under Issue-ID: 118541, bearing subject-line as 'CDNR-AMENDMENT NOT DECLARE IN GSTR-1'.

[Amit Agrawal]

Even though the recipient in your case (being unregistered) had not taken ITC against your original invoice, still, you need to produce supporting evidences to the effect that 'the incidence of tax and interest on such supply has NOT been passed on to any other person'' as envisioned in proviso to Section 34 (2).

Considering the failure to disclose these credit-notes in Form GSTR-1, it would be advisable to have strong supporting evidences specially coming from recipient's end (say, supporting CA certificate at the end of recipient of subject credit-notes & supporting ledger statements etc.).

This is also subject to a presumption that you have adjusted such tax-amount (against your credit-notes) - while filing Form GSTR-3B for the month/s - within the time permitted in Section 34 (2).

These are ex facie views of mine, the same should not be construed as professional advice / suggestion.

[Padmanathan Kollengode]

To the best of my understanding, in case of B2C supplies the CDNR amount is to be netted off from the gross B2C supplies and only the net B2C supplies are to be declared in GSTR-1. and the CDNR values are to be separately declared only for B2B supplies. (pls correct me if I am wrong)

Assuming that such netting off is not done and you have declared gross B2C supplies in GSTR-1, see the following possibility:

If time limit to amend GSTR-1 is not yet over, kindly amend B2C supplies of GSTR-1 to make it net of CDNR.

In case time limit is over, try to rectify in GSTR-9 annual returns.

In any circumstances, the reduction of taxable value and tax cannot be denied to you merely due to mistake in reporting. However, you have prove the same along with supporting documents. Since the original supplies are B2C supplies (ie to unregistered persons), the question of recipient availing ITC does not arise in my opinion.

[Shilpi Jain]

Mentioning the period to which your query pertains would always produce more specific answers.