TMI BlogDebit note/ supplementary invoice - GST rate changeX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, I have a query w.r.t Debit note/ supplementary invoice. One of my client charged 5% GST in the original invoice, however actual rate was 12%. Now he want to regularize the same by increasing 7%. I understand that he can do it by issuing Debit note/ supplementary Invoice. There is no change in taxable value, only rate of tax is to be changed. How this can be dealt in GSTR 1 since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no option to update tax without putting taxable value (for debit note and supplementary invoice) ? Kindly advice. - Reply By Shilpi Jain - The Reply = This seems to be a challenge in the existing returns whereby without mentioning taxable value the rate change debit note cannot be disclosed in the returns. Further, even if it is disclosed with the taxable value the rate of 7% is not a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable in the returns. The only way out seems to do an amendment to the original invoice (even though that is not a fact) in Form GSTR-1 and issue the revised invoice to the customer. INterest liability will also exist for the differential amount of tax now paid. However, in the new returns (Form GST ANX-1) this issue is being addressed where such debit notes can be disclosed with zer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o being mentioned for the taxable value. - Reply By Shilpi Jain - The Reply = Another option which could be tried is to disclose the taxable value as 1 for the taxable value and mention rate of tax as 12% (as 7% rate of tax does not exist) and mention the differential tax amount in the tax column. say ₹ 100 is the original invoice value - enter Re 1 as taxable value for the dr note in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GSTR-1 , enter tax rate as 12% then edit the tax amount to ₹ 7. There will be a minor difference in the taxable value in Form GSTR-9C which can be explained by the auditor if material. - Reply By KrishnaKumar A - The Reply = Thank you Shilpi, I understand that complication same time i recognize these are the options we have. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = Clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r reply by Shri Shilphi. - Debit note/ supplementary invoice - GST rate change - Query Started By: - KrishnaKumar A Dated:- 16-8-2019 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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