Commercial discounts

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This discussion clarifies how commercial credit notes from a supplier are treated for GST reconciliation, specifically for GSTR 9C. For the recipient, credit notes issued by a supplier are generally irrelevant for GST purposes. However, if the transaction involved a supply from your business, you would need to issue an invoice or bill of supply, which would then be reported in GSTR 9 and 9C.

g.v.ramesh babu

g.v.ramesh babu (Querist)
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15 February 2021 Dear Sir
one of my client received commercial credit notes from his supplier and declared it on the credit side of trading account. whether it can be shown under exempt supplies in gst reconciliation for the purpose of gstr 9c

CA Altamush Zafar

CA Altamush Zafar (Expert)
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15 February 2021 Since it is the supplier who has given credit notes then it is irrelevant in gst for recipient. However if the nature of transaction was of supply from you then you need to issue invoice/bill of supply regardless of any credit notes and then this invoice will be shown in 9 & 9c as supplies

CA Altamush Zafar

CA Altamush Zafar (Expert)
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