GST Amendment: How to Amend GSTR 1 and Invoices?
Businesses often find errors in their returns after filing, whether it's incorrect details in B2B invoices, nil-rated supplies, or even exempted sales. To correct such mistakes, the GST portal offers the option to amend these details under specific conditions. However, the process requires a clear understanding of the amendment rules, the associated time limits, and the nature of the amendments allowed.
This article explores how to amend GSTR 1, the complexities of invoice and summary level amendments, and common error messages businesses face during these amendments.
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Filing Period to Select While Reporting Amendments
When amending GSTR 1, the first step is selecting the correct filing period. The amendments should be reported in the GSTR 1 of the period in which the error or omission was identified. For example, if a mistake was discovered in an invoice from April but is being corrected in October, you must file the amendment in the GSTR 1 of October.
Choosing the correct filing period is crucial to ensure that tax liabilities are adjusted appropriately and that credit and debit notes are accurately reflected in the right period.
Invoice-Level Amendments in GSTR 1
What Can Be Amended at Invoice Level?
Invoice-level details in GSTR 1, including B2B invoices, B2C large invoices, and exports, are prone to errors. You can amend the following details:
GSTIN of the recipient: Mistakes in the GSTIN can be corrected, provided the recipient is not changing.
Invoice number and date: Only minor corrections are allowed, such as typos. Major changes, such as issuing a new invoice number, need to be done by issuing a fresh invoice.
Taxable value and tax amount: If there was an under-reporting or over-reporting of the taxable value or tax rate, you can adjust these.
Place of supply: Amendments in the place of supply are possible but come with restrictions, as explained below.
To amend these details, log into the GST portal and navigate to the amendment section under GSTR Here’s how to amend GSTR 1 after filing B2B invoices:
Select the invoice that needs amendment.
Modify the necessary fields.
Submit the amendment and ensure the tax amount adjusts automatically.
Summary-Level Amendments in GSTR 1
Summary-level amendments involve rectifying errors in the aggregated figures of taxable supplies, exports, and nil-rated supplies. Amendments in this section could include:
Correcting the HSN Summary for products.
Modifying the values for exempted, nil-rated, and non-GST supplies.
Correcting export summaries.
For example, if you missed reporting nil-rated supplies in a previous period, you can add those details when filing the GSTR 1 for the current period and mention it as an amendment.
Time Limit for Amendments in GSTR 1
One of the most crucial aspects of GST amendments is the time limit for amendment of invoice under GST. As per the GST laws:
Amendments can be made until 30th November of the following financial year or before filing the annual return, whichever is earlier.
This means that errors in a return filed for FY 2023-24 can be amended until November 2024, provided the annual return has not yet been filed.
Failure to amend within this window may lead to penalties, and the incorrect details would remain on record.
Which Details Cannot Be Amended at Invoice Level?
While many details in invoices can be corrected, there are certain restrictions:
GSTIN of the recipient: If the wrong GSTIN was used entirely, you cannot amend it. Instead, you need to issue a fresh invoice.
Invoice type (e.g., B2B to B2C): The type of invoice cannot be changed. For example, a B2B invoice mistakenly filed as B2C cannot be amended but needs to be canceled, and a new invoice should be issued.
Supply type: Mistakes in the nature of the supply, such as intrastate vs interstate, require fresh invoices, not amendments.
Which Details Cannot Be Amended at Summary Level?
At the summary level, some data is also locked from amendments:
Advance Payment Adjustments: Once advances have been reported, you cannot delete the entry. Corrections must be made through adjustments in subsequent returns.
Non-GST supplies: The nature of the transaction (whether GST-applicable or not) cannot be changed once reported.
Place of Supply Amendments with Limitations
Amendments to the place of supply are possible, but limitations exist. If the place of supply was wrongly entered as intra-state (within the same state) instead of inter-state (between two states), the amendment might involve additional complications:
Intra-state to inter-state corrections can lead to additional tax liabilities since IGST would need to be applied instead of CGST and SGST.
Reversing such an entry requires careful reconciliation with the recipient’s GSTIN and tax credits, especially if the buyer has already claimed input tax credit.
Illustrations on GST Amendments
Understanding GST amendments becomes clearer with practical numerical examples. Here are some scenarios demonstrating how amendments work in real-life cases:
1. Incorrect Taxable Value Reported on a B2B Invoice
Scenario:You issued a B2B invoice for INR 100,000, but due to a clerical error, you reported the taxable value as INR 90,000 in GSTR 1, leading to underpayment of tax.
Correction Process:
The correct taxable value: INR 100,000.
The reported taxable value: INR 90,000.
The differential taxable value: INR 10,000.
For a tax rate of 18%, the under-reported tax amount would be:
Correct tax liability (18% of INR 100,000): INR 18,000.
Reported tax liability (18% of INR 90,000): INR 16,200.
Difference: INR 1,800 (under-reported tax).
Amendment:In GSTR 1, navigate to the B2B Amendment section, locate the invoice, and correct the taxable value to INR 100,000. The system will automatically calculate the additional tax amount of INR 1,800. Submit the amended return.
2. Incorrect Tax Rate Applied to a Supply
Scenario:A supply of goods was incorrectly taxed at 12% instead of the correct 18% rate. The taxable value of the supply was INR 50,000, but the tax collected was based on 12%.
Correction Process:
Tax at 12% (incorrect): INR 50,000 × 12% = INR 6,000.
Correct tax at 18%: INR 50,000 × 18% = INR 9,000.
Difference: INR 9,000 - INR 6,000 = INR 3,000 (under-collected tax).
Amendment:In GSTR 1, amend the B2B invoice to update the tax rate to 18%. The system will calculate the additional INR 3,000 payable.
3. Wrong Place of Supply Reported
Scenario:You reported a sale to a customer in Maharashtra as intra-state instead of inter-state. You applied CGST and SGST instead of IGST. The taxable value is INR 200,000.
Correction Process:
Tax paid: 9% CGST = INR 18,000 and 9% SGST = INR 18,000.
Correct tax: 18% IGST = INR 36,000.
Amendment:In GSTR 1, amend the Place of Supply from Maharashtra (intra-state) to Gujarat (inter-state). The tax liability will now reflect IGST, and the incorrect CGST/SGST will be reversed.
4. Amending Export Supply Reported as Domestic
Scenario:You exported goods worth INR 300,000 but mistakenly reported it as a domestic sale in GSTR 1.
Correction Process:
Tax applied (domestic sale): INR 300,000 × 18% = INR 54,000.
Correct tax (export): INR 300,000 at 0% (zero-rated supply).
Amendment: In GSTR 1, locate the invoice under B2B Domestic Supplies and move it to Exports (zero-rated supply). This will eliminate the INR 54,000 tax liability and correctly classify the transaction.
List of Error Messages and Resolutions
Below is a table listing common error messages encountered while amending GSTR 1 and their corresponding resolutions:
Category | Mistakes Made in Amendments | Error Message While Uploading Data | Resolution/Explanation |
Amendments in B2B Transactions | Receiver/Customer GSTIN cannot be changed. | "GSTIN of the Receiver does not match the original invoice records." | The GSTIN of the recipient cannot be altered for B2B invoices. Ensure the GSTIN is accurate before filing, or issue a new invoice if necessary. |
Deemed Export is always interstate, and reverse charge is always "N". | "Cleartax validates this while importing." | Ensure that all deemed exports are marked as interstate and that reverse charge is set to "N" in line with GST rules. | |
Revised invoice date cannot be later than the last day of the tax period when the original invoice/note was uploaded. | "Revised invoice/note date is invalid. Revised date cannot be later than the last day of the tax period when the original invoice/note was uploaded." | Amend the invoice/note date so that it falls within the correct tax period of the original submission. Avoid dates later than the tax period. | |
Cannot amend it to Bill of Supply (BOS). You must select 0% rate and proceed. | "The transaction flags as BOS if flagged as BOS in Cleartax." | BOS transactions cannot be amended directly. Use 0% tax rate for BOS supplies, but the original invoice nature cannot be changed to a BOS. | |
Incorrect original invoice number/date provided during amendments. | "Invalid original invoice details. Original invoice cannot be tracked. Please enter the correct invoice number and date." | Ensure that the original invoice number and date are accurately entered during amendments to avoid this error. | |
Amendments in Credit/Debit Notes | Revised date cannot be later than the last day of the tax period when the original invoice/note was uploaded. | "This error no longer appears because credit/debit notes are now de-linked from the original invoice by the Finance Act amendment." | No longer an issue; however, ensure that credit/debit notes are correctly reported without future dates. |
Place of Supply cannot be changed since it is tied to the original invoice. | "Supply type cannot be changed for saved CDN. Kindly enter the same supply type as the original CDN." | POS changes are restricted unless the supply type changes (e.g., inter-state to intra-state). Keep the same POS or supply type as the original CDN to avoid upload failure. | |
Original credit/debit note number must be entered correctly. | "Original note cannot be tracked. Please enter the correct note number and date." | Double-check the credit/debit note number and date to ensure they match the original documents for correct amendment. | |
Amendments in B2C Large Transactions | Place of Supply cannot be changed. | "Cannot change on online portal, but can be changed if pushed through API." | POS cannot be directly changed on the GST portal. Use API integration to make POS changes for B2C large amendments. |
Cannot amend the Bill of Supply (BOS). | "The transaction flags as BOS if flagged as BOS in Cleartax." | Once flagged as BOS, the transaction cannot be changed. Amendments must keep the transaction nature the same or select the correct tax rate. | |
Incorrect original invoice number/date provided for B2C transactions. | "Original invoice date entered is invalid. Please enter a valid invoice date." | Ensure that the original invoice date and number are entered correctly to avoid this error. | |
Revised date cannot be later than the last day of the tax period when the original invoice/note was uploaded. | "Invoice date cannot be later than the return period or older than 18 months." | Amendments should ensure that dates fall within the correct return period and should not exceed 18 months. | |
Amendments in B2C Small Transactions | Cannot add a new Place of Supply (POS); can only modify existing POS. | "Original data for B2C small doesn’t exist." | The POS can only be modified, not added. Ensure that all amendments align with the original POS in the GSTR 1 return. |
Incorrect return period or POS entered for B2C small amendments. | "Original data for B2C small doesn’t exist." | Double-check the original return period and POS when making amendments to avoid upload failure. | |
One POS cannot be split/amended into two POS entries. | "If you split, the GST portal will process only one POS (the last one appearing in the JSON structure)." | Avoid splitting a single POS into multiple entries. The system will process only the last POS listed. Amend the POS correctly as one unit in the JSON file. |
TaxBuddy’s Services for Hassle-Free GST Compliance
TaxBuddy offers comprehensive GST filing and compliance services to make the process seamless. From invoice amendments, handling export transactions, and resolving errors in GSTR 1 to ensuring timely submissions, TaxBuddy provides expert guidance and error-free filing.
FAQ
Q1. What is the time limit for amending an invoice under GST?
Amendments can be made until 30th November of the next financial year or before filing the annual return, whichever is earlier.
Q2. How do I amend B2B invoices in GSTR 1 after filing?
You can amend B2B invoices by selecting the invoice in GSTR 1, modifying the required fields, and submitting the changes.
Q3. Can I amend exempted sales in GSTR 1?
Yes, exempted sales can be amended in the summary section of GSTR 1.
Q4. How can I amend a bill of lading under GST?
Amendments to a bill of lading are not directly part of GSTR 1 but can affect the taxable value reported if adjustments are needed.
Q5. How to check amended invoices in the GST portal?
You can check amended invoices by navigating to the amendment section in the GST portal and viewing the updated entries.
Q6. What details cannot be amended at the invoice level?
The recipient’s GSTIN, invoice type (B2B vs B2C), and supply type (intra-state vs inter-state) cannot be amended.
Q7. Can I amend nil-rated supplies in GSTR 1?
Yes, nil-rated supplies can be amended under the summary section in GSTR 1.
Q8. Is there a way to amend an HSN summary in GSTR 1?
Yes, HSN summary amendments can be made in the HSN summary section in GSTR 1 by updating the correct code or taxable value.
Q9. What happens if I miss the amendment deadline for an invoice?
If you miss the amendment deadline, the incorrect details will remain on record, and penalties may apply.
Q10. Can I change the place of supply in an amended invoice?
Yes, you can change the place of supply, but only within the permitted limits and with necessary adjustments to taxes.
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