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The new GST system was brought into the picture to make filing of returns more simplified and smoother. Along with several other changes in the forms that were of the old return system, credit and debit note reporting also saw some changes. Let’s look at what those changes are and their implications in the return filing system. Issue of credit note/debit note is important to keep the system of invoicing transparent for both parties. Under GST, it holds relevance in reporting in the returns as well.
The reporting of credit/debit notes on the GST portal was made in GSTR-1. It can be classified as follows:
The reporting of credit or debit notes under the new return filing system will be made in Form GST ANX-1. The reporting involves:
The taxpayer must report these in Table ‘3A: Supplies made to consumers and unregistered persons (net of debit/credit notes)’. It is evidently mentioned in the table that supplies are to be declared net of debit/credit notes.
Since it relates to B2C supplies, the declaration is not required to be made at the invoice level. The particulars to be furnished in this table are the place of supply, tax rate, taxable value and tax amount under each head -IGST/CGST/SGST/UTGST/Cess.
These details must be furnished in Table ‘3B: Supplies made to registered persons (other than those attracting reverse charge) (including edit/amendment)’. The supplies are not to be declared on a net basis since the declaration is made at the invoice level.
The particulars to be furnished in this table are GSTIN/UIN, place of supply, document details like type, CDN number, date and value, HSN Code, tax rate, taxable value, tax amount under each head -IGST/CGST/SGST/ UTGST/Cess.
In order to furnish a credit/debit note, the same has to be selected from the ‘Document Type’ drop-down list. In the old return filing system, there was a separate table for declaration of credit/debit notes to registered persons but now such details can be declared within the same table used to declare outward supplies.
The most significant change when it comes to reporting of credit notes in the new return filing system is that there is no longer a separate table for this purpose since it is integrated within the table that is used to declare outward supplies:
The details of outward supply provided in Table 3A need to be net of credit/debit notes. There is no invoice level declaration in this table, hence individual credit notes need not be declared separately. The annexure allows negative figures in case the value of credit notes exceeds the value of outward supply made, in the given tax period. The old system of filing required the credit/debit notes to be linked against the original invoices that needed to be rectified. However, the new system does not require such linking of original invoices to be made within the return.
The details of outward supply provided in Table 3B are at the invoice level and hence each credit/debit note would also have to be provided individually, with all the requisite details. Even here, there is no requirement of linking the credit/debit notes to the original invoices.