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GSTIN Inactive

Mohit Agrawal (AUDIT MANAGER) (104 Points)

12 July 2021

While giving B2B details of invoices in GSTR 1, one GSTIN status is showing INACTIVE. It is written that GSTIN of recipient has been inactive. These will be added after validation.

What should we do in such case ?

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6 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 12 July 2021

Such transactions can be considered as B2C transactions.

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Mohit Agrawal (AUDIT MANAGER) (104 Points)
Replied 12 July 2021

Reporting as B2C transaction will result input loss to the buyer. Pls. note that buyer is in process of activation of his GSTIN.

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CMA Poornima Madhava (CMA) (13112 Points)
Replied 12 July 2021

Yes, you are right. At present, it can't be regarded as a B2B transaction right?

I understand that in business we can't be so harsh to clients. So some people do resort to the option of raising a C/N and a new invoice as and when the GSTIN becomes active.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 13 July 2021

But you won't be able to file your return unless the recipient GSTN get Active & Moreover the Recepient can't claim ITC on same when his GSTN is not active.

So report that bill in B2C & file your return & when in future the Recepient GSTN get activated , you can amend your B2C sale (by reducing) & report that bill in B2B tab.

So it is advisable do not delay your return & file the return accordingly