Mackie (Entrepreneur ) (290 Points)
20 November 2020Hello,
If a service provider has raised credit notes then how to accept those credit notes? Do we need to less the total credit note amount from tht months input tax claim? Or we need to pay the total credit note amount in gstr3b like a normal invoice?
18E0343 V Pradhish
(243 Points)
Replied 20 November 2020
Mackie
(Entrepreneur )
(290 Points)
Replied 20 November 2020
| Originally posted by : 18E0343 V Pradhish | ||
 |
Which means it is Debit Note for you. You need to less the total note amount from that month Input tax claim or subsequent month.thank you. |  |
Great! Thnks fr the reply Pradhish!
Mackie
(Entrepreneur )
(290 Points)
Replied 20 November 2020
| Originally posted by : 18E0343 V Pradhish | ||
|
Which means it is Debit Note for you. You need to less the total note amount from that month Input tax claim or subsequent month.thank you. | |
Hello you saying reduce the amount from tht months input tax claim while in 2B under which these credit notes are mentioned it says: Part-B : ITC Reversal – Credit should be reversed in relevant headings in GSTR-3B. What does this mean? Does it mean the same thing you said? Adjust the credit note amount while claiming input tax in 3B?
18E0343 V Pradhish
(243 Points)
Replied 20 November 2020
Mackie
(Entrepreneur )
(290 Points)
Replied 20 November 2020
| Originally posted by : 18E0343 V Pradhish | ||
|
Yes.- You can less the note amount from ITC ( Purchase - Debit Note = Net purchase ) | |
Thanks, Pradhish! Same would be the case if I am filing a nil return fr Oct? I can deduct the amount from the total input tax I will be claiming this month? So the idea is to not claim the credit note amount from the available input tax in 2A. Hope I got this right.
Do I need to select D. Do you have any claim/reversal of Input tax credit(ITC) on purchase of goods or receipt of services ? (Table 4) while filing GSTR 3B?
Do I need to mention the credit note details in Table 4(B)(2) of FORM GSTR-3B?
18E0343 V Pradhish
(243 Points)
Replied 20 November 2020
Mackie
(Entrepreneur )
(290 Points)
Replied 20 November 2020
| Originally posted by : 18E0343 V Pradhish | ||
|
Mackie! 1- If you have any purchases in Oct'20 make formula as ( Total purchase - Note ) and fill the upcoming amount in Table 4(A)(5) all other ITC.there is no compulsion to be mentioned in 4(B)(2). (So the Net ITC available (A)-(B) will be your (Purchase-note amount)2- If you are willing to show it in Table 4(B)(2) then you are not advised to minus the note amount in Table(A)(5).(So the Net ITC available (A)-(B) will be your (Purchase-note amount)Both the scenario have no issues. As per my view - 4(B)(2) is for reversing ITC which you've claimed wrongly/Twice per input. | |
Thanks for the clarity Pradish! You explained it well! Actually I also realized that Table 4(B)(2) is for reverse charge if I have availed the Input tax mentioned in credit note but since I have not availed the input tax I can simply deduct the credit note amount from available input tax.
I have some accumulated input tax since April 20 which I will be claiming this month. Will deduct the credit note amount from the available input tax and mention the rest in Table 4(A)(5). Hope this is correct and I am doing it the right way.
Once again thnks for the detailed explanation.
Mackie
(Entrepreneur )
(290 Points)
Replied 20 November 2020
hello pradhish another query popped up while filing 3b: our 2A also includes claimed input tax of fy 19-20 which we had claimed last month. Now if we deduct tax mentioned in the credit notes from the available input tax, dont you think there would b confusion and problem while reviewing final yearly input tax eligibility vs claimed data?
the final claimed input tax will b anyway more due to input tax of fy 19-20 claimed this year plus now dere is deduction of credit notes. How the system would bifurcate that whether the particular input tax of credit notes have been claimed or not?
18E0343 V Pradhish
(243 Points)
Replied 20 November 2020
Mackie
(Entrepreneur )
(290 Points)
Replied 20 November 2020
| Originally posted by : 18E0343 V Pradhish | ||
|
What is the necessity for fy:19-20 here ? When the note is issued to you by your supplier ? | |
it is mainly about difference in total eligible input tax vs claimed which is already dere because of input tax of fy 19-20 which have claimed plus now we will adjust credit note tax from it. Not sure how system will bifurcate whether we claimed the input tax of credit note or not as the final numbers will b very different.
Neve mind, i think it is difficult to put it in words and explain. what I am saying...thnks for the help anyway! :) :)
Mackie
(Entrepreneur )
(290 Points)
Replied 21 November 2020
Hi Pradhish, just to chk, do we hve to mention details of these credit notes any where while filing next gstr1? Thnks!
18E0343 V Pradhish
(243 Points)
Replied 21 November 2020
CAclubindia
