Question

We issued credit note in the month of july 2017. instead of entering credit note in GSTR 1, we entered the same in Debit note by mistake. In april we realized our mistake and amended the same through amendment in debit credit note column. Entered credit note by way of amendment as the same was entered debit note in original. have we done correct or do something else.

Answer

Case 1

The Debit note is entered instead of credit note and tax is paid on that.

You sold goods of Rs 100/-, wanted to issue credit note of Rs 20/- but entered debit note of Rs 20/- and paid tax on Rs 20/-.

Now the tax is paid on Rs 120/- instead of Rs 80/-. For this you should now enter credit note of Rs 40/- to rectify the effect of debit note.

Case 2

You sold goods of Rs 100/- and issued credit note of Rs 20/- and reduce the tax liability for it but in GSTR-1 the same is shown as debit note instead of credit note.

Then credit note wrongly recorded as debit note is required to be amended in GSTR-1 through Tile 9C i.e Amended Debit/Credit notes. By doing this there will be no impact on your tax liability if you have paid tax correctly while filing GSTR-3B of July 2017.   (Reply dt.01/10/2018)