I have a query regarding reversing or claiming refund of GST liability wrongly reported. The facts are as under:
1. Out of total 10 invoices in May 2023, 4 tax invoices were without GST for the service actually covered under RCM.
2. While filing GSTR-1 for May 2023, the said 4 invoices were wrongly reported with tax as though under FCM (along with other 6 tax invoices).
3. Now while filing GSTR-3B for May 2023 this wrongly reported liability for 4 invoices will be set off against available ITC.
Query is whether the utilized ITC will get reversed and restored if while filing GSTR-1 amendment is reported with zero tax (RCM) on the said 4 invoices or credit note requires to be raised? Or what is the correct procedure to restore this ITC ?
In june, there are two options you can do.either you can issue credit notes or ammend them.The option to select will depends on how they are accounted in books of accounts.
case1)if that 4 invoices also has wrongly entered in books of accounts
raise credit notes for that invoices in june and issue new invoices without tax (both in books and upload them in gstr1 june month).
case2)if that 4 invoices has entered with out tax in may in books of accounts, they you need to ammend them in june3b.
*Effect on ITC already used:
In june return the output tax will automatically adjusts with june output tax.so no need to worry.(same effect will be there for both cases stated above)
CAclubindia
