Question

One of my client issued supplementry invoice to their buyer against the original invoice issued in the month of July 2017. The buyer of my client did not accept the supplementary invoice. My client had already filed their GSTR1 and the supplementary invoice was uploaded.After that incident my client issed credit note to cover the supplementary invoice and both were not entered by the buyer.Now both supplementary invoice and credit note are showing in GSTR2A of the party and the party is asking but to do with the credit note as well as supplementary invoice. Is there any litigation in future if he does not enter the same in their books. He is also not ready to enter the same in their books. Now my problem is that the buyer is saying us that they should not be shown in the GSTR2A . Kindly let me have your expert opinion in the matter. Buyer will not enter the both in their books.

Answer

If you have issued invoice and the same is not accepted by the customer then it does not make any difference. The acceptance of invoice by customer make him entitle to take credit. Your liability to pay tax arises the moment you issue invoice. The question of acceptance of credit note comes into effect if the customer had accepted the invoice and availed ITC.

This procedure is framed to assure that your output tax liability is reduced only if the customer has not availed/reversed the ITC upto corresponding amount. There is no question of litigation in this. (Reply dt.25/09/2018)