Credit Note & Debit Note under GST

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A GST-registered taxpayer issued a credit note for returned goods in September 2020, impacting their September GSTR 3B. However, the customer had already issued a debit note for the same return in August 2020, which appeared in the supplier's October GSTR 2B. This created a double effect on the GST portal. The primary recommendation is for the customer to cancel the debit note, as it's generally incorrect for a customer to issue one to a supplier. If the customer refuses, further steps are needed to rectify the situation.

Pragati Sharma

Pragati Sharma (Querist)
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23 December 2020 A GST regd taxpayer has issued credit note to customer in Sept 2020 against goods returned on sale. He reported the same in GSTR 1 and took its effect in GSTR 3B for Sept.

The assessee has noticed that the customer has already issued debit notes against the good returned in August 2020 GSTR1 and is reflecting in October GSTR 2B of supplier.

The assessee has reduced his output liability in GSTR 3B of sept but due to debit note effect, ITC is reflecting in GSTR 2B of Oct. Thus the GST portal is having double effect of this credit note amount

How to take the correct effect?