A credit note or debit note is a legal way of revising the value of the goods and services in the tax invoice. There could be many circumstances that warrant the need for changes in the tax invoice and it might not always be possible to recall the original invoice and raise a revised invoice. Hence, credit or debit note (CDN) helps businesses to remedy changes. Sometimes, the CDNs will require amendments or revisions too.
Let’s understand those cases and how to report them in GST returns.
When is an amendment to credit note/debit note required in GSTR-1?
It is quite possible that either through human error or as a result of the needs of a business, the credit note or debit note issued earlier requires an amendment. The same can be done on the GST portal.
There are two types of amendments:
- Amendments to be made in credit/debit notes issued to registered persons
- Amendments to be made in credit/debit notes issued to unregistered persons
Reporting requirements for an amendment in credit note/debit note in GSTR-1
Amendments to CDN (B2B)
For reporting amendments to credit/debit notes issued to registered persons, fill in ‘Table 9C – Amended Credit/Debit Notes (Registered)’ of the monthly form GSTR-1. On the GST portal, the original credit/debit note is first searched by entering the financial year and the credit note no. or debit note no. that needs amendment. There are few pre-filled fields appearing. The fields which would be required to be filled up are revised credit/debit note no., the revised credit/debit note date, the original invoice number, the original invoice date, note type (either debit or credit), the note value, and the taxable value.
Following are the important points to note while reporting amendments to CDN (Registered):
- Receiver GSTIN/UIN, receiver name, original credit/debit note number, and original credit/debit note date cannot be changed.
- The revised date cannot be later than the last day of the tax period when the original invoice/note was uploaded.
- Place of Supply cannot be changed since it is based on the original Invoice. Enter the same ‘supply type’ (Intra or Interstate) as that of the original CDN. Also, one cannot change it from B2B to B2C or vice-versa.
- Ensure correctness of Original CDN number.
Amendments to CDN (B2C)
For reporting amendments to credit/debit notes issued to unregistered persons, fill in ‘Table 9C – Amended Credit/Debit Notes (Unregistered)’ of the monthly form GSTR-1. On the GST portal, the original credit/debit note is first identified by entering the financial year and the credit note number or debit note number that needs amendment.
The pre-filled fields at this stage would be Type (of supply), Original Debit/Credit Note No. and Original Debit/Credit Note Date. No changes can be made in these fields. The fields which would then require to be filled up are revised credit/debit note no., revised credit/debit note date, the original invoice number, original invoice date, note type (either debit or credit), the note value, and the taxable value. Note that the type of supply cannot be changed from B2C to B2B or vice-versa.
Reporting Requirements for an amendment in credit note/debit note in GSTR-9
Table 4 of the annual return (Form GSTR-9) is titled ‘Details of advances, inward and outward supplies made during the financial year on which tax is payable’. The figures in this table are auto-populated from the Form GSTR-1 of all the months/quarters filed for the relevant financial year. Declare the value of supplies/tax declared or reduced through amendments in Row ‘K’ and Row ‘L’ of this table respectively.