GST PAID ON THE SAME TENANT TWICE FOR 5 MONTHS
This query is : Resolved
01 November 2019
DEAR SIR,
ONE OF MY CLIENTS HAS RENTED A COMMERCIAL SPACE AND BY MISTAKE HAS RAISED TWO INVOICES IN 2 DIFFERENT NAMES EVERY MONTH SINCE MAY,19 TILL SEPT,19 AND PAID THE APPLICABLE GST AND FILED RETURNS TILL SEPTEMBER,2019. THE TENANT DONT HAVE A GST REGISTRATION AND HAS SHOWN UNDER B-2-C IN GSTR 1 FOR Q1 AND Q2.
NOW HOW TO CLAIM THE GST PAID IN EXCESS, IN FUTURE.
CAN U GUIDE ME THE PROCEDURE AND HOW TO ADJUST THE SAME
THANKS & REGARDS
ONE OF MY CLIENTS HAS RENTED A COMMERCIAL SPACE AND BY MISTAKE HAS RAISED TWO INVOICES IN 2 DIFFERENT NAMES EVERY MONTH SINCE MAY,19 TILL SEPT,19 AND PAID THE APPLICABLE GST AND FILED RETURNS TILL SEPTEMBER,2019. THE TENANT DONT HAVE A GST REGISTRATION AND HAS SHOWN UNDER B-2-C IN GSTR 1 FOR Q1 AND Q2.
NOW HOW TO CLAIM THE GST PAID IN EXCESS, IN FUTURE.
CAN U GUIDE ME THE PROCEDURE AND HOW TO ADJUST THE SAME
THANKS & REGARDS
02 November 2019
In my opinion, as the recipient is unregistered, you should File Nil GSTR-3B And GSTR-1 till the date Excess Payment is adjusted. Other Procedures are Lengthy and may attract notice from the Department.
02 November 2019
Thank you for the reply sir. One point, apart from the above, he is having commercial rent from another 3-4 tenants. Whether he can adjust excess GST paid against GST payable on other tenants who r having GST reg?
Thanks
Thanks
27 July 2024
If a client has mistakenly paid GST twice for the same tenant over several months due to issuing duplicate invoices, they need to take specific steps to rectify the situation and adjust the excess GST paid. Here’s how you can address the issue:
### Steps to Claim Excess GST Paid
1. **Determine the Amount of Excess GST Paid:**
- Calculate the total excess GST paid due to the duplicate invoices.
2. **Rectify the Invoice Details:**
- **Issue Credit Notes:** Since the invoices were raised in duplicate, the client should issue credit notes for the duplicate invoices. These credit notes should mention the GST amount being reversed.
- **Adjust GSTR-1 and GSTR-3B:** Reflect the credit notes in the GSTR-1 and GSTR-3B for the respective periods.
3. **Reconcile and Adjust GST Returns:**
- **GSTR-1:** Ensure that the credit notes are correctly reflected in the GSTR-1 for the respective months. The credit notes will reduce the reported output GST.
- **GSTR-3B:** Adjust the GST paid on the excess invoices by including the credit notes in the GSTR-3B. This will help to adjust the excess GST paid against future GST liabilities.
4. **Adjusting ITC if the Tenant is Not GST Registered:**
- Since the tenant does not have a GST registration, the client cannot adjust the excess GST against the tenant’s GST liabilities. Instead, the excess GST paid should be adjusted against the client’s future GST liabilities.
5. **Handling Excess GST with Other Tenants:**
- **Adjustment Against Other GST Liabilities:** The client can adjust the excess GST paid against the GST payable from other tenants who are registered under GST. This is possible if the commercial rent from these other tenants is subject to GST and the client is charging and paying GST on these rents.
- **Carry Forward to Future Periods:** If not adjusted immediately, the excess GST can be carried forward and adjusted against future GST liabilities. Ensure that this adjustment is properly recorded in the GST returns.
### Procedure for Adjustment
1. **Credit Note Issuance:**
- Issue credit notes for the duplicate invoices raised. This should include the GST amount to be adjusted.
- Record these credit notes in the accounting system and in the GST returns for the respective periods.
2. **Update GST Returns:**
- Reflect the credit notes in the GSTR-1 and GSTR-3B for the periods when the duplicate invoices were originally raised.
- Ensure the adjusted GST amount is correctly accounted for in the returns.
3. **Reconcile Excess GST:**
- Reconcile the GST credit notes with the GST payments made.
- Adjust the excess GST against the GST payable on other commercial rents or carry it forward for future periods as per GST rules.
4. **Consult GST Advisor:**
- For complex scenarios or to ensure compliance, consult a GST advisor or tax professional who can provide guidance based on specific details and ensure correct treatment of the excess GST.
### References and Compliance
- **GST Act, Section 34:** Deals with the issuance of credit notes and debit notes.
- **GST Rules:** Refer to the GST Rules for detailed procedures related to adjustments and credits.
- **GST Portal:** Regularly check the GST portal and notifications for any updates or changes in the procedures.
By following these steps, your client can correct the mistake and manage the excess GST paid efficiently.
### Steps to Claim Excess GST Paid
1. **Determine the Amount of Excess GST Paid:**
- Calculate the total excess GST paid due to the duplicate invoices.
2. **Rectify the Invoice Details:**
- **Issue Credit Notes:** Since the invoices were raised in duplicate, the client should issue credit notes for the duplicate invoices. These credit notes should mention the GST amount being reversed.
- **Adjust GSTR-1 and GSTR-3B:** Reflect the credit notes in the GSTR-1 and GSTR-3B for the respective periods.
3. **Reconcile and Adjust GST Returns:**
- **GSTR-1:** Ensure that the credit notes are correctly reflected in the GSTR-1 for the respective months. The credit notes will reduce the reported output GST.
- **GSTR-3B:** Adjust the GST paid on the excess invoices by including the credit notes in the GSTR-3B. This will help to adjust the excess GST paid against future GST liabilities.
4. **Adjusting ITC if the Tenant is Not GST Registered:**
- Since the tenant does not have a GST registration, the client cannot adjust the excess GST against the tenant’s GST liabilities. Instead, the excess GST paid should be adjusted against the client’s future GST liabilities.
5. **Handling Excess GST with Other Tenants:**
- **Adjustment Against Other GST Liabilities:** The client can adjust the excess GST paid against the GST payable from other tenants who are registered under GST. This is possible if the commercial rent from these other tenants is subject to GST and the client is charging and paying GST on these rents.
- **Carry Forward to Future Periods:** If not adjusted immediately, the excess GST can be carried forward and adjusted against future GST liabilities. Ensure that this adjustment is properly recorded in the GST returns.
### Procedure for Adjustment
1. **Credit Note Issuance:**
- Issue credit notes for the duplicate invoices raised. This should include the GST amount to be adjusted.
- Record these credit notes in the accounting system and in the GST returns for the respective periods.
2. **Update GST Returns:**
- Reflect the credit notes in the GSTR-1 and GSTR-3B for the periods when the duplicate invoices were originally raised.
- Ensure the adjusted GST amount is correctly accounted for in the returns.
3. **Reconcile Excess GST:**
- Reconcile the GST credit notes with the GST payments made.
- Adjust the excess GST against the GST payable on other commercial rents or carry it forward for future periods as per GST rules.
4. **Consult GST Advisor:**
- For complex scenarios or to ensure compliance, consult a GST advisor or tax professional who can provide guidance based on specific details and ensure correct treatment of the excess GST.
### References and Compliance
- **GST Act, Section 34:** Deals with the issuance of credit notes and debit notes.
- **GST Rules:** Refer to the GST Rules for detailed procedures related to adjustments and credits.
- **GST Portal:** Regularly check the GST portal and notifications for any updates or changes in the procedures.
By following these steps, your client can correct the mistake and manage the excess GST paid efficiently.
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