Debit note/ supplementary invoice - GST rate change

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..... Debit note/ supplementary invoice - GST rate change
Query (Issue) Started By: - KrishnaKumar A Dated:- 16-8-2019 Last Reply Date:- 26-8-2019 Goods and Services Tax - GST
Got 4 Replies
GST
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 incr .....

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..... easing 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 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 .....

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..... 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 available 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 w .....

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..... ill 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 zero 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 o .....

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..... f 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 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 Re .....

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..... ply: Thank you Shilpi, I understand that complication same time i recognize these are the options we have. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: Clear reply by Shri Shilphi.
Discussion Forum - Knowledge Sharing .....

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