Scenario:


I supply school uniforms which is a standard-rated item. I have a customer in Indonesia. I issued an invoice to the Indonesian and forgot to change the tax code from SR to ZRE. How should I reverse the transaction?


Effect of my mistake:


Undervalue total taxable supply in GST-03 form

Undervalue total output tax in GST-03 form.

Overvalue total export supply in GST-03 form.


Suggested Solution:


1. We need to offset the invoice amount. This can only be done through Credit Note. We will reduce the total export supply in GST-03.


2. Issue a new invoice with the correct tax codes.