How to do Correction in GST Tax Invoice

By | August 23, 2018
(Last Updated On: August 23, 2018)

How to do Correction In GST Tax Invoice

Video Explanation by CA Satbir Singh in Hindi

A Supply to Unregistered Person was made and Tax invoice was made in June but by mistake wrong purchaser name was written in tax invoice , now we want to cancel that tax invoice and generate new tax invoice in August with correct name of purchaser . We have already paid tax in June . What to do now ? How to show in GST Return (GSTR 1)  ?

There is no provision in the GST Act for the above situation

There are two possibilities :-

  • If the Goods are not returned by the recipient : Credit note can not be issued
  • If the Goods are returned by the recipient (because Purchaser name is wrong) : then  you can issue credit note for earlier invoice and issue fresh invoice and deliver the goods again. You can Amend GSTR-1 return 

Be careful while issuing your Tax Invoice under GST.

Cancellation of Invoice under GST

Thus there is no provision of Cancellation of Invoice in GST Act

Revision of Invoice under GST

Invoice can be revised only in case mentioned in Section 31(3) of CGST Act 2017

… 

(3) Notwithstanding anything contained in sub-sections (1) and (2)—

(a)a registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him;

Issue of Credit Note under GST

Section 34 of CGST act 2017 : Credit and debit notes .

34. (1) 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.

Section 2(93) of CGST Act 2017 :  recipient means

(93)“recipient” of supply of goods or services or both, means
(a)where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration;
(b)where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and
(c)where no consideration is payable for the supply of a service, the person to whom the service is rendered,
and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied;

Issue of Debit Note under GST

Section 34 of CGST act 2017 : Credit and debit notes .

……

(3) 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 be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed

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Refer GST Tax Invoice Free Study Material  

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