Question

The Credit notes of July-17 were wrongly entered assuming they were exclusive of GST although they were inclusive of GST, which was discovered i.e we had booked credit note of INR 100 +18 as 118, even though it was actually 85+15 Due to this sale and taxes were under reported in the July-17 month because excess value of credit notes were claimed. Further, we had already made an amended in Credit note (for change of date) & portal allows us only one amendment. It`s important because we can only consider all the changes and rectifications in Sep - GSTR-3B. So please suggest that how I could correct this in GSTR-1 & in GSTR-3B.

Answer

After recording credit note in return, your current status is as follows: you have under reported sales by Rs 15 as well as under paid tax of Rs 3, therefore you are required to issue debit note against the original invoice for difference in amount as you cannot amend this credit note recorded by you in return. Further you are liable for payment of interest in cash on tax under paid by you from the date of issue of credit note till the date return is filed recording the amendment.

Please note that against one invoice debit note as well as credit note can be issued. (Reply dt.27/09/2018)