Delinking of Credit Note/Debit Note from invoice, while reporting them in Form GSTR 1/GSTR 6 or filing Refund
Recently GSTN has enabled the facility to delink reporting of debit note or credit note corresponding with their original invoice. Earlier, to report debit or credit note in GSTR 1/ GSTR 6, tax payers had to link each to their corresponding Invoice. This is much awaited change introduced on GSTN portal while filing GSTR 1 (Outward supplies) or GSTR 6 (ISD Return) or filing refund applications.
We are pleased to attach a brief note on such chance with a comparison on earlier and updated facility –
1. Till now, original invoice number was mandatorily required to be quoted by the taxpayers, while reporting a Credit Note or Debit Note in Form GSTR-1 or Form GSTR-6
Screenshot of Earlier Reporting Requirement in GSTR 1 –
2. Following facility has been introduced for taxpayers on GSTN Portal with this respect:
- Single credit note or debit note issued in respect of multiple invoices can be reported while furnishing Form GSTR-1 or in Form GSTR-6,
- Supply Type can be chosen as Regular, SEZ, DE, Export etc., to identify the table to which such credit note or debit note pertains
- Place of Supply (POS) can be selected against each credit note or debit note, to identify the supply type i.e. Intra-State or Inter-State (State-wise POS Debit note or Credit notes to be reported)
- Debit /Credit Notes can be declared with tax amount, but without any taxable value alsoe. if credit note or debit note is issued for difference in tax rate only, then note value can be reported as ‘Zero’. Only tax amount will have to be entered in such cases.
- While reporting amendments to credit note or debit note similar changes has been introduced.
Screenshot for Current delinking of Debit or Credit Note from Invoice –
Note – You may observe that Original Invoice Number and Original Invoice Date has been dispensed with.
3. Change in Refund Module for aforesaid enhancement –
Now, while applying for refund, taxpayers can report such credit notes or debit notes in statements (filed during filing the refund application) without mentioning the related invoice number. The taxpayer would be required to select the document type from a drop-down comprising of invoice/ debit note/ credit note.
Changes has been introduced while filing following type of refund applications –
| Refund for export of services with payment of tax | Refund on account of goods & services without payment of tax | Refund on account of supply of goods or services to SEZ with payment of tax |
| Refund on account of supply of goods or services to SEZ without payment of tax | Refund on account of Inverted duty structure | |
GSTN Press Release in this Regard dated 17.09.2020 is as follows:-
Delinking of Credit Note/Debit Note from invoice, while reporting them in Form GSTR 1/GSTR 6 or filing Refund
17/09/2020
1. Till now, original invoice number was mandatorily required to be quoted by the taxpayers, while reporting a Credit Note or Debit Note in Form GSTR-1 or Form GSTR-6.
2. The taxpayers have now been provided with a facility on the GST Portal to:
- Report in their Form GSTR-1 or in Form GSTR-6, single credit note or debit note issued in respect of multiple invoices
- Choose the note supply type as Regular, SEZ, DE, Export etc., to identify the table to which such credit note or debit note pertains
- Indicate Place of Supply (POS) against each credit note or debit note, to identify the supply type i.e. Intra-State or Inter-State
- Debit /Credit Notes can be declared with tax amount, but without any taxable value also i.e. if credit note or debit note is issued for difference in tax rate only, then note value can be reported as ‘Zero’. Only tax amount will have to be entered in such cases.
- Similar changes have been made while reporting amendments to credit note or debit note
3. Corresponding changes have also been made in refund module. Thus, while applying for refund, taxpayers can now report such credit notes or debit notes in statements (filed during filing the refund application) without mentioning the related invoice number. The taxpayer would be required to select the document type from a drop-down comprising of invoice/ debit note/ credit note.
4. The change has been provided while filing refund application of following types/ cases:
- Refund for export of services with payment of tax
- Refund on account of goods & services without payment of tax
- Refund on account of supply of goods or services to SEZ with payment of tax
- Refund on account of supply of goods or services to SEZ without payment of tax
- Refund on account of Inverted duty structure
Thanking you,
Team GSTN
*****
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But what is the procedure for that means how to deal with it and will it be restrospective or what?