Gstr-9 and credit note on purchase

This query is : Resolved

jaigurudev (Querist)
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18 May 2023 Dear sir,
party has issued wrong invoice in my name and later issued credit note for the same
how to treat this in gstr-9 and where to show input of credit note?
[input as per books 10000 2b 10500 credit note on portal 500]
with thanks

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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12 June 2023 You can show correct input taken in 3B in table 6B of GSTR-9.

jaigurudev

jaigurudev (Querist)
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12 June 2023 Respected sir, should i show input data as per books or as per 3b
with thanks

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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27 July 2024 In GSTR-9, which is the annual return under GST, you need to accurately reflect the transactions as per your books of accounts and reconcile them with the data reported in your GSTR-3B and GSTR-1. Here's how you can handle the credit note issued on a purchase in GSTR-9:

### **Handling Credit Note in GSTR-9**

1. **Understanding the Scenario:**
- **Invoice Issued:** Party issued a wrong invoice in your name.
- **Credit Note:** A credit note was later issued to correct the wrong invoice.
- **Input Credit:** As per your books, you have recorded an input of ₹10,000, but the credit note was ₹500, making the total as ₹10,500. Your portal (GSTR-2B) shows an input credit of ₹10,500.

2. **Reporting in GSTR-9:**
- **Table 5 (Reconciliation of Turnover):**
- Report the total turnover as per your books. This includes the value of purchases and any adjustments made.

- **Table 6 (ITC Details):**
- **6B:** Report the ITC availed as per your books. In your case, it should reflect the total input credit of ₹10,000 as per your books, because this is the amount you have claimed as input credit before the credit note was issued.
- **6C:** Report the ITC claimed in GSTR-3B. This should be reconciled with your books. If you have claimed ₹10,500 in your GSTR-3B, it should reflect here.
- **6D:** Report the ITC that was missed or claimed incorrectly. This includes any adjustments related to credit notes. If the credit note adjustment wasn't made in your GSTR-3B, report it here.

- **Table 9 (Other Adjustments):**
- Report any adjustments related to the credit notes that were issued. This is where you reconcile the discrepancy between the input credit claimed as per your books and the credit note adjustments.

### **Steps to Follow:**

1. **Report Input Credit:**
- **6B:** Report the input credit as per your books. In your case, it would be ₹10,000.
- **6C:** Report the ITC claimed in GSTR-3B. This should be ₹10,500 if you claimed the full amount including the credit note in GSTR-3B.

2. **Adjustments for Credit Note:**
- **6D:** Adjust the ITC that needs to be reversed or corrected. Since the credit note of ₹500 corrects the earlier wrong invoice, ensure to adjust this in the applicable table.

3. **Reconcile with 3B and Books:**
- Ensure that the total input credit shown in GSTR-9 matches the ITC as per your books and GSTR-3B after accounting for the credit note adjustments.

### **Summary:**

- **Input Credit:** Report the credit as per books in **Table 6B**.
- **GSTR-3B Claims:** Report the total ITC claimed in GSTR-3B in **Table 6C**.
- **Credit Note Adjustments:** Adjust and reconcile any differences due to credit notes in **Table 6D** and **Table 9**.

**Important Note:** Ensure all data is accurately reconciled to avoid discrepancies and ensure compliance. For precise filing, it’s always a good idea to consult with a tax professional or refer to the latest GST guidelines.