ITC reversed in FY 2023-24

This query is : Resolved

satish kumar Chauhan (Querist)
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15 December 2024 Dear Experts
I have reveresed the ITC of Rs. 8000/- against rate differene etc during the FY 2023-24 and issued the debit notes to suppliers but no credit note issued the supplier till Oct-2024. We have file the GSTR-9 & 9-C for the FY 2023-24.
Now Suppliers issued the credit notes in November-2024 and uploaded the GST Portal.

How can treat it in GSTR-3B of Nov-24.

Thanks for earliest advice.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 December 2024 Since the credit note issued by the supplier in November 2024 relates to transactions of FY 2023-24, you should adjust your output tax liability in the GSTR-3B of November 2024. According to the GST rules, credit notes issued by suppliers must be accounted for in the GSTR-3B of the month in which they are issued if they relate to transactions of the current financial year or the immediate previous financial year.
In your GSTR-3B for November 2024, you would reduce the taxable value and the corresponding tax amount in Table 3.1 by the amount mentioned in the credit note. This effectively reduces your output tax liability for that month.
Since the supplier has uploaded the credit note to the GST Portal, it will reflect in your GSTR-2B. However, for your GSTR-3B, you'll manually adjust the figures as described above since the system doesn't automatically adjust based on supplier actions post-filing of annual returns.