Credit note and debit note reversal

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This discussion addresses how to correctly reflect credit notes from suppliers like Amazon and debit notes from service providers, such as logistics companies, in GST returns. The user seeks clarification on their impact on GSTR 3B, GSTR 1, and Input Tax Credit (ITC). Guidance is provided on whether these notes need to be shown in GSTR 1 and how to adjust ITC in GSTR 3B, including advice on netting off or showing them separately.

Pragna Marfatia

Pragna Marfatia (Querist)

16 January 2021 I have got credit note from Amazon and debit note from a transportation service provider.
How to reflect credit note and debit notes in GSTR 3B and GSTR 1. Also how to reflect in ITC.
Please guide, I am totally confused.

Lekhraj sood

Lekhraj sood (Expert)

17 January 2021 I assume Amazon has given credit note as supplier (commission service).You do not have to show in GSTR1 but take ITC effect in GSTR3B.

Pragna Marfatia

Pragna Marfatia (Querist)

18 January 2021 Thank You Sood Sir,
Yes, Amazon has issued me credit Note.
So, I have to reverse credit note GST amount in Table 4(2) (B) and I don't have to do anything in Table 3.1, not to show anything in GSTR1- Is the understanding correct?
Similarly, Logistics Provider has issued me debit note. So I increase my ITC amount to that extent alongwith normal ITC in Table 4 and don't have to show anything in Table 3.1, not to show anything in GSTR1 - Is the understanding correct?
Can I net off credit and debit note amount or better to show separately.?
Will be greatful for your guidance.

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