Credit note

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This query is : Resolved

JM Products and Services (Querist)

09 February 2021 some credit notes are issued by supplier to us(we are buyer), now what should we have to show in 9B of GSTR1?
may we have to make debit note against these credit notes having same note numbers and taxable values of credit note given by supplier or should we have to make credit notes with same note numbers given by supplier?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

06 July 2024 When credit notes are issued by the supplier to you (the buyer), and you are required to report these transactions in GSTR-1, here’s how you should handle it:

1. **Reporting in GSTR-1 (Table 9B):**
- You need to report these credit notes issued by the supplier in Table 9B of GSTR-1 under "Amendments to taxable outward supplies (including debit notes/credit notes and amendments thereof)."
- Include the details of the credit notes issued by the supplier to you. This includes the original note numbers and the taxable values adjusted by these credit notes.

2. **Debit Note for Adjustment:**
- Since these credit notes affect your input tax credit (ITC) and financial records, you should issue a corresponding debit note to adjust your books.
- The debit note should have the same note numbers and taxable values as the credit notes issued by the supplier. This ensures consistency in your financial records and compliance with GST regulations.

3. **Procedure:**
- Prepare debit notes with the same note numbers and taxable values as the credit notes received from the supplier.
- Use these debit notes to adjust your input tax credit and financial statements accordingly.

### Example Scenario:

- Suppose Supplier A issues Credit Note No. CN-123 dated 1st September 2023 for Rs. 50,000 to adjust a previous sale to you.
- In your GSTR-1, under Table 9B, report Credit Note No. CN-123 issued by Supplier A with details as per their document.

- Then, issue a Debit Note No. DN-123 dated 1st September 2023 for Rs. 50,000 to adjust your accounts receivable and ITC accordingly.

### Conclusion:

Reporting credit notes issued by suppliers in your GSTR-1 involves accurately reflecting the details provided by them. Subsequently, issuing corresponding debit notes helps maintain consistency in your financial records and ensures compliance with GST regulations. If you have specific queries or face complexities, consulting with a GST practitioner or tax advisor would be beneficial to ensure accurate compliance with GST laws.

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