Credit note input reversal

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This query is : Resolved

Quick Summary

When you receive a credit note for a purchase return, it's crucial to report it correctly in your GSTR3B. The recommended practice is to show credit note reversals separately in the 'Reversal' column, rather than netting them off against your total input tax credit. This clear disclosure prevents the department from assuming you haven't reported credit notes, which often auto-populate in GSTR-2B.

Shiv Karwa

Shiv Karwa (Querist)

24 February 2021 Receive credit note for purchase return. Where to show in 3b. All other itc ( total input minus credit note itc) or show separately in revesal coloum as system generated.

CA Altamush Zafar

CA Altamush Zafar (Expert)

24 February 2021 Advisable to show separately as reversal

Message likes : 1 times

Ganeshbabu K

Ganeshbabu K (Expert)

24 February 2021 You have to show seperately in GSTR3B under Reversal coloumn.

otherwise department may feel you didnt reported Credit notes which also auto populate in 2B ..

So disclosing seperate is good practice and advisable

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