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Credit/debit notes without gst

S S KALVI (SMO) (94 Points)

23 June 2018

If I make all Debit note (Purchase return) & Credit note (sales return) of Expire & saleble return medicines without GST, is this is legally wrong . Because for this I and supplier both agreed , we have no loss or benefits with or without GST.

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14 Replies

Jatin (Accountant) (3479 Points)
Replied 23 June 2018

No, you can't make Debit Note or Credit Note without GST

Vinod Babu (24191 Points)
Replied 24 June 2018

Not possible to make debit note or credit not without gst. As the goods is returned, the tax should be reversed. For reversing the tax, gst must be taken in credit/ debit notes.

1 Like

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 24 June 2018

No you cannot do so, The GST has to be reduce or inceease on sale return or purchase return

S S KALVI (SMO) (94 Points)
Replied 24 June 2018

By this govt also not have any loss or benifit. What is legal aspect don't know

Jatin (Accountant) (3479 Points)
Replied 24 June 2018

Mr. S S Kalvi Ji,

Agree with you, but follow procedure, you can't make Debit or Credit Note without GST

S S KALVI (SMO) (94 Points)
Replied 25 June 2018

Jatin Ji, Thanks. But National level standard pharma house like Cipla ltd, Lupin ltd, IPCA ltd etc there C&F are ready to raise credit note without gst if we send purchase return without GST . They all have a team of legal advisor.

Vinod Babu (24191 Points)
Replied 25 June 2018

Yes if they are raising credit note without gst then input tax must be reversed.

S S KALVI (SMO) (94 Points)
Replied 25 June 2018

Vinod Ji, If they (supplier) issue credit note without gst it is mandatory for me to make debit note of that without gst. Than how gst output or input affect.

saurav chhabra (BUSINESS) (114 Points)
Replied 20 September 2018

If the goods are returned then debit note or credit note has to be rasied with gst. There are scenario where goods are not returned(iron ore,manganese ore, sponge iron) but the quality is inferior hence the customer asks it to reduce the price of the goods as per the quality supplied. In this scenario supply is being made but quality is lower hence if the credit note or debit note is raised without Gst then later a question can be asked supply is made then how come gst is not charged or reversed? therefore in such scenario Can party raise the credit or debit notes on the basic value as per the the price mutually agreed and full gst charged on the invoice raised at the time of supply is paid. Therefore there is no revenue loss as well. Can this be the way out where supply is being made and goods are not returned and tax charged is also paid and only on basic value of the goods it will be executed by way of credit or debit note. Please give your views and solution for such situations.