05 August 2022
Sir, I have done mistake that sales reported in B2B INSTEAD OF B2C ON MARCH IN FY 2021-22 BUT MY B2C SALE IS ZERO ON THAT MONTH. NOW THIS MONTH I WANT TO RECTIFY GSTR1.FOR THAT , 1. I HAVE ISSUED CREDIT NOTE CURRENT MONTH(JULY 22 GSTR1) 2. SAME AMOUNT, I HAVE REPORTED IN B2C COLUMN. (JULY 22 GSTR1) IN THIS CASE , MY GSTR1 FOR CURRENT MONTH VALUE IS ZERO. ( CN-B2C) AND ALSO GSTR3B. Plz suggest this procedure is correct or not. THANKING you
09 July 2024
To rectify the mistake in your GSTR-1 where B2B sales were incorrectly reported instead of B2C sales, you can follow the process you mentioned. Here’s a step-by-step breakdown to ensure the correction is handled correctly:
1. **Issue a Credit Note for the incorrect B2B sales in the current month (July 2022)**: - This will reverse the wrongly reported B2B sales for March 2022.
2. **Report the corrected B2C sales for the same amount in the current month (July 2022)**: - This will ensure that the correct sales are now reported under B2C for the same period.
### Detailed Steps:
1. **Credit Note for B2B Sales**: - Issue a credit note in your July 2022 GSTR-1 to reverse the incorrect B2B sales reported in March 2022. - Reflect the credit note in the B2B section to reduce the sales amount.
2. **Report B2C Sales**: - Report the correct B2C sales in the B2C section of your July 2022 GSTR-1.
### Impact on GSTR-3B: - Since the total sales amount remains the same, the net effect on your GSTR-3B for July 2022 will be zero. - Your GSTR-3B should reflect the total adjustments, ensuring there is no discrepancy in your tax liability.
### Example Scenario: - **March 2022**: - Incorrect B2B sales reported: ₹X - **July 2022**: - Issue a credit note for B2B sales: -₹X - Report B2C sales: ₹X
### Correct Procedure: - The steps you have taken are correct. By issuing a credit note and then reporting the correct B2C sales in the same month, you ensure that your overall sales and tax liability are correctly reflected.
### Important Notes: - **Documentation**: Keep all documentation of the credit note and the correction for future reference and possible audits. - **GSTR-1 and GSTR-3B Reconciliation**: Ensure that the figures in GSTR-1 and GSTR-3B are reconciled for the current month (July 2022) and accurately reflect the corrections.
### Conclusion: Your procedure of issuing a credit note for the B2B sales and reporting the same amount in the B2C column in your GSTR-1 for July 2022 is correct. This will ensure that your sales and tax liabilities are accurately reported without discrepancies.
If you have any concerns or doubts, it’s always best to consult with a GST professional or Chartered Accountant to ensure compliance and accuracy in your GST filings.
CAclubindia
