Error in Amendment of B2B Invoice in GSTR-1, Goods and Services Tax - GST

[YASH JAIN]

I am getting the following error message while trying to amend an invoice relating to FY 2024-25 in GSTR-1.

• A record can be amended only if it is not Accepted/Modified by the counter-party.Invoice no./Note no.has already been Accepted/Modified by the counter-party..

What can be the issue and what is the resolution.

Posts / Replies

[YAGAY andSUN]

The error message you are receiving while trying to amend the invoice in GSTR-1 indicates that the invoice you are attempting to amend has already been accepted or modified by the counter-party (the recipient of the supply). This means the counter-party (your customer) has already acknowledged or updated the information regarding this invoice in their own GSTR-2A or GSTR-3B, and thus, the invoice cannot be amended in your GSTR-1.

Here’s a more detailed breakdown of the situation and the resolution steps:

What is the Issue?

1. Acceptance/Modification by Counter-party:
   • The counter-party (your customer) has already accepted or modified the invoice details in their GST return (GSTR-2A/2B/3B). When they do this, the invoice becomes part of their return, and any changes made by you after they have accepted it cannot be directly amended.
   • This is a safeguard to ensure the integrity of GST data and prevent unauthorized or erroneous changes after the counter-party has already reported the invoice in their return.
2. GSTR-1 Amendment Rules:
   • According to GST law, invoices or credit/debit notes that have already been accepted by the recipient (i.e., reflected in their GSTR-2A/2B) cannot be amended unless the recipient provides explicit consent.
   • Amendments can only be made in the following cases:
     • The invoice has not yet been accepted/modified by the recipient in their return.
     • The recipient has not yet filed their return.

Possible Reasons for the Issue:

• Counter-party has filed their GSTR-3B: The counter-party might have already filed their GSTR-3B and accepted the invoice details, making it non-editable in your GSTR-1.
• GSTR-2A/2B has already reflected the invoice: If your customer has already received the invoice in GSTR-2A (or GSTR-2B), any amendment would need to be done through a credit note or debit note instead of modifying the original invoice.

Resolution Steps:

To resolve this issue and correct the details of the invoice, follow these steps:

1. Verify with the Recipient:
   • Check with your customer (counter-party) to see if they have already filed their GSTR-3B and whether the invoice is reflected in GSTR-2A/2B. This will confirm that the counter-party has already accepted the invoice details.
2. Issue a Credit Note:
   • If the invoice contains an error or needs to be amended (such as a change in quantity, price, or any other details), the proper way to amend the invoice is to issue a credit note or debit note (as applicable). This is the correct procedure for amending a supply when the invoice has already been accepted by the counter-party.
   • Credit Note: If the value of the supply has decreased (e.g., due to return of goods), issue a credit note.
   • Debit Note: If the value of the supply has increased, issue a debit note.
3. Ensure Proper Reporting:
   • After issuing the credit note or debit note, you will need to report it in your GSTR-1 for the relevant period, and the counter-party (recipient) will need to accept the note in their GSTR-2A/2B.
4. Check Timeline:
   • If you are trying to amend an invoice for FY 2024-25 and the counter-party has already accepted it, you may still have the option to amend the invoice by issuing the credit/debit note within the permissible timeline (typically within the same financial year or next financial year).

Summary of Steps:

1. Confirm with the recipient if they have already accepted the invoice in their GSTR-2A or GSTR-3B.
2. If the invoice is accepted, issue a credit note or debit note (as applicable) for the required changes.
3. Report the credit note or debit note in your GSTR-1 and ensure the recipient acknowledges it in their GSTR-2A/2B.

By following the above steps, you should be able to resolve the issue and correct any errors in the original invoice.

[YASH JAIN]

If i had posted wrong GST No. in portal then it can be amended 

[YAGAY andSUN]

Yes, if you have posted the wrong GST number on a portal, it can generally be amended, but the process depends on the specific portal or platform you're using.

For GST-related corrections, if you're referring to a GST return filing (like GSTR-1, GSTR-3B, etc.), here’s what you can do:

1. GST Return Amendments:
   • If you have filed a GST return with an incorrect GSTIN (GST Number), you can correct it in the next period’s return.
   • Amendments can be made in the next return for the incorrect GSTIN by filing the necessary details in the new period’s GST returns.
2. For GST Registration Details:
   • If you have made a mistake while registering your GST details, you can apply for an amendment in your GST registration via the GST portal.
   • Log into the GST Portal, go to Services > Registration > Amendment of Registration. Here, you can make necessary amendments to your business details, including correcting your GSTIN if it was entered wrong.

Note: If the mistake is significant or involves wrong information in the GSTIN itself (like entering the wrong entity's GST number), you may need to contact the GST helpline or your GST consultant to ensure proper steps are followed.

 

[Shilpi Jain]

Try to issue a credit note and issue a fresh invoice. However, contact your customer and explain the situation and then do this.

Else customer will not accept credit note then it will be an issue again.