GSTR 1 mar 22
This query is : Resolved
09 April 2022
After uploading json file to file GSTR 1 of March 22
I am facing one error saying "GSTIN of recipient inactive " in one of the invoice and this invoice is not getting shown in GSTR 1
My question is
Am i not supposed to pay GST on this particular invoice ?
I am facing one error saying "GSTIN of recipient inactive " in one of the invoice and this invoice is not getting shown in GSTR 1
My question is
Am i not supposed to pay GST on this particular invoice ?
09 April 2022
This means that since GSTN of that particular recipient is inactive it will not be uploaded as B2B transaction. you have to show it in B2C. Entire sales will be reported in 3B.
11 April 2022
But then when his GSTIN becomes active he will not get ITC credit ?
27 July 2024
When encountering the "GSTIN of recipient inactive" error for an invoice while filing GSTR-1, it indicates that the recipient's GSTIN is currently inactive or not valid at the time of filing. Here’s how to handle this situation:
### **1. **Impact on GST Liability and Filing**
1. **GST Payment on the Invoice:**
- **Yes, GST is still payable:** Even if the recipient's GSTIN is inactive, you are still liable to pay GST on that invoice. Your GST liability for the period remains unchanged.
- **No ITC for Recipient:** Since the recipient’s GSTIN is inactive, they will not be able to claim Input Tax Credit (ITC) on this invoice until their GSTIN is reactivated.
2. **Reporting in GSTR-1:**
- **Invoice Reporting:** You should still include the invoice in your GSTR-1 under the appropriate section, if it’s applicable, to report your sales.
- **Error Handling:** If the invoice isn’t getting included due to the error, you might need to manually track this issue and ensure that it’s resolved in subsequent filings.
### **2. **Steps to Handle the Issue**
1. **Verify GSTIN Status:**
- **Check Status:** Confirm the status of the recipient’s GSTIN. You can do this by visiting the GST portal and entering the recipient’s GSTIN to check its current status.
2. **Rectify the GSTIN Status:**
- **Recipient Action:** If possible, inform the recipient to resolve the issue with their GSTIN. They might need to address any compliance issues or reapply for GST registration if their GSTIN was deactivated due to non-compliance or other reasons.
3. **Update Your Records:**
- **Maintain Records:** Keep detailed records of this transaction, including any communications regarding the GSTIN status and the steps taken to resolve the issue.
4. **Adjustments in Future Returns:**
- **Future Filing:** If the recipient's GSTIN becomes active in the future, you can adjust the records in the subsequent GSTR-1 filings. Ensure that any future credits or adjustments related to this invoice are properly accounted for.
### **3. **Filing Process and Correction**
1. **File GSTR-1:**
- **Include the Invoice:** If you are able to file GSTR-1 with the invoice information, do so while noting that the GSTIN was inactive.
- **Correct in Future:** Ensure that when the recipient’s GSTIN is reactivated, the invoice details are reviewed and updated as necessary in future returns.
2. **Revise Returns:**
- **Amend GSTR-1:** If the GSTIN issue is resolved after the return is filed, and if corrections are allowed, you may need to revise the GSTR-1 for that period to reflect the correct status of the recipient’s GSTIN.
### **4. **ITC and Recipient**
1. **ITC Claim by Recipient:**
- **No ITC Until Active:** The recipient cannot claim ITC on this invoice until their GSTIN is active. Once the GSTIN is reactivated, they will need to claim the credit in the period when their GSTIN status is active.
2. **Communication with Recipient:**
- **Inform the Recipient:** Ensure the recipient is aware that their GSTIN status needs to be corrected to enable them to claim ITC once it becomes active.
### **Summary:**
1. **Continue to Pay GST:** You are still liable to pay GST on the invoice despite the recipient’s GSTIN being inactive.
2. **Include in Records:** Track the invoice and attempt to include it in your GSTR-1 filing.
3. **Rectify GSTIN Status:** Work with the recipient to resolve their GSTIN issues.
4. **Adjust Future Filings:** Make necessary adjustments in future GSTR-1 filings once the recipient’s GSTIN is active.
By following these steps, you can ensure compliance with GST regulations while managing issues related to inactive GSTINs.
### **1. **Impact on GST Liability and Filing**
1. **GST Payment on the Invoice:**
- **Yes, GST is still payable:** Even if the recipient's GSTIN is inactive, you are still liable to pay GST on that invoice. Your GST liability for the period remains unchanged.
- **No ITC for Recipient:** Since the recipient’s GSTIN is inactive, they will not be able to claim Input Tax Credit (ITC) on this invoice until their GSTIN is reactivated.
2. **Reporting in GSTR-1:**
- **Invoice Reporting:** You should still include the invoice in your GSTR-1 under the appropriate section, if it’s applicable, to report your sales.
- **Error Handling:** If the invoice isn’t getting included due to the error, you might need to manually track this issue and ensure that it’s resolved in subsequent filings.
### **2. **Steps to Handle the Issue**
1. **Verify GSTIN Status:**
- **Check Status:** Confirm the status of the recipient’s GSTIN. You can do this by visiting the GST portal and entering the recipient’s GSTIN to check its current status.
2. **Rectify the GSTIN Status:**
- **Recipient Action:** If possible, inform the recipient to resolve the issue with their GSTIN. They might need to address any compliance issues or reapply for GST registration if their GSTIN was deactivated due to non-compliance or other reasons.
3. **Update Your Records:**
- **Maintain Records:** Keep detailed records of this transaction, including any communications regarding the GSTIN status and the steps taken to resolve the issue.
4. **Adjustments in Future Returns:**
- **Future Filing:** If the recipient's GSTIN becomes active in the future, you can adjust the records in the subsequent GSTR-1 filings. Ensure that any future credits or adjustments related to this invoice are properly accounted for.
### **3. **Filing Process and Correction**
1. **File GSTR-1:**
- **Include the Invoice:** If you are able to file GSTR-1 with the invoice information, do so while noting that the GSTIN was inactive.
- **Correct in Future:** Ensure that when the recipient’s GSTIN is reactivated, the invoice details are reviewed and updated as necessary in future returns.
2. **Revise Returns:**
- **Amend GSTR-1:** If the GSTIN issue is resolved after the return is filed, and if corrections are allowed, you may need to revise the GSTR-1 for that period to reflect the correct status of the recipient’s GSTIN.
### **4. **ITC and Recipient**
1. **ITC Claim by Recipient:**
- **No ITC Until Active:** The recipient cannot claim ITC on this invoice until their GSTIN is active. Once the GSTIN is reactivated, they will need to claim the credit in the period when their GSTIN status is active.
2. **Communication with Recipient:**
- **Inform the Recipient:** Ensure the recipient is aware that their GSTIN status needs to be corrected to enable them to claim ITC once it becomes active.
### **Summary:**
1. **Continue to Pay GST:** You are still liable to pay GST on the invoice despite the recipient’s GSTIN being inactive.
2. **Include in Records:** Track the invoice and attempt to include it in your GSTR-1 filing.
3. **Rectify GSTIN Status:** Work with the recipient to resolve their GSTIN issues.
4. **Adjust Future Filings:** Make necessary adjustments in future GSTR-1 filings once the recipient’s GSTIN is active.
By following these steps, you can ensure compliance with GST regulations while managing issues related to inactive GSTINs.
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