GSTN: Facility of Delinking of Credit Note/Debit Note from invoice is made available.

The Goods and Service Tax Network (GSTN) has released an update regarding the delinking of Credit Note/Debit Note from invoice while reporting them in Form GSTR 1/GSTR 6 or filing Refund, on September 17, 2020.

Until now the taxpayers had to compulsorily quote the original invoice number while reporting a Credit Note or Debit Note in Form GSTR-1 or Form GSTR-6.

From now onwards the GST Portal has provided with a new facility that will help them in following things-

1. For reporting in their Form GSTR-1 or Form GSTR-6, single credit note or debit note issued in respect of multiple invoices.
2. For choosing the note supply type as Regular, SEZ, DE, Export etc., to identify the table to which such credit note or debit note pertains.
3. For indicating the Place of Supply (POS) against each credit note or debit note, to identify the supply type i.e. Intra-State or Inter-State.
4. 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 the difference in tax rate only, then note value can be reported as ‘Zero’. The only tax amount will have to be entered in such cases.
5. Similar changes have been made while reporting amendments to credit note or debit note.

Also, resembling changes were provided in the refund module. Now the taxpayers while applying for a refund, 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.

In the following types of cases, these changes are provided for filing refund application-

• 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.

With Warm Regards,

CL Bureau.