Question

A dealer issued an invoice of rs. 100000.00 plus gst @ 18% i.e. rs. 18000.00, total invoice value is rs. 118000.00 in the month of july 2017 to a govt. agency and received payment for material and gst paid to govt. Now that govt. agency issue a debit note of rs. 6000.00 to the dealer as gst should be charged @ 12% instead of 18%. My question is : 1. If dealer can reduce his output gst by rs. 6000.00 in gstr 3b for the month of september 2018? 2. if yes, that what document should be issued by the dealer or received from the govt. agency? 3. Can output gst may be reduced after September 2018?

Answer

As per section 34 of CGST Act "Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed."
Thus in view of above you are required to issue credit note for the differential Tax amount of Rs. 6000/-.


Further as per sub section (2) of above section "any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed

Therefore you can adjust the credit note for supply relating to FY 2017-18 upto due date of September month GSTR-3B which is 25-10-2018 or extended date if any notified in future. After that you are not allowed to do any adjustment relating to Fy 2017-18. (Reply dt.25/10/2018)