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Credit Note

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This query is : Resolved

Quick Summary

A business dispatched waste material worth Rs. 95,720/-, but the party returned it due to quality issues without issuing a debit note. The query asks if a credit note can be raised in this scenario. The advice given is to issue a credit note and report it in GSTR-1. When a debit note from the buyer is usually referenced for issuing a credit note, the user seeks guidance on how to proceed without one.

sankar ponnan

sankar ponnan (Querist)

21 March 2020 SIR
We had dispatched the waste material to a party which amounts to Rs. 95720/- But they have returned our material due to quality issue to us without making any entry and issuing any debit note regarding this transaction. Can we raise credit note?

Gokul Sharma

Gokul Sharma (Expert)

21 March 2020 yes you have to issue credit note to the party.
and show this in your gstr 1

sankar ponnan

sankar ponnan (Querist)

25 March 2020 Thank You Sir - One More Doubt, Usually at the time of raising Credit Note, We refer the Number of Debit Note issued by the Buyer. Inacseof this situation without debit note from party, what to do sir?

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