Debit note

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This query is : Resolved

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A user has issued a debit note for returned goods, including GST, but the supplier is only willing to pay the base amount for the goods, not the GST. The user is concerned about having to bear the GST burden if they reverse the tax. The advice suggests that the reversal of tax is contingent on receiving a credit note from the supplier.

Krishna Joshi

Krishna Joshi (Querist)
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02 January 2020 I have issued a debit note for returning the goods worth Rs 40000 and charge gst @ 5 % which Rs 2000 , the total amount is Rs . 42000. But my supplier is not ready to pay the total amount Rs 42000, he is ready to pay only the amount of goods Rs 40000.WHAT SHOULD I DO IN THIS CASE .

PLEASE SUGGEST ME.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 January 2020 Consider 40000 inclusive of 5% GST. Obtain credit note for this.

Krishna Joshi

Krishna Joshi (Querist)
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08 January 2020 i already issued a debit not and the gst amount of rs 2000 . is not being paid by the supplier.
if i have to reverse the tax amount of returned goods then the burden of tax amount is come on me...
so please suggest me what should i do..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 January 2020 Your reversal is based on credit note issued by supplier.

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