Debit Note/Credit Note-Urgent Please

This query is : Resolved

CMA Omkar.TIlve (Querist)
Follow

11 April 2021 Client is a ultratech cement dealer. After the sales have been done by the dealer. The company revises sale price (gives discount) to my client (the dealer). As such company issues credit note. Client has properly reversed ITC in GSTR-3B. But did not issue debit note. This has been happening for almost 2-3 years.

What are the consequences and what is the procedure to rectify the same
Is issuance of debit note mandatory. Which form to use and how to file and rectify the same

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

11 April 2021 No need to issue debit note. Credit note issued by the company is enough.

Message likes : 1 times

CMA Omkar.TIlve

CMA Omkar.TIlve (Querist)
Follow

11 April 2021 It is not mandatory to issue a debit note back to the company then..? No required to show in GSTR 1..?

Please guide me on it or tell me more on it sir..

CA Altamush Zafar

CA Altamush Zafar (Expert)
Follow

11 April 2021 Debit Note is to be issued for accounting purposes. No need to show in gstr-1. Check one thing though... whether such credit notes by the company is being shown in gstr2a/gstr2b?. If yes then no issue If no then there can be a problem.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

11 April 2021 Not mandatory to issue debit note.
Account the credit note issued and reverse ITC.
As per GST rules only sellers are required to issue debit or credit note.

Message likes : 2 times

CA Altamush Zafar

CA Altamush Zafar (Expert)
Follow

11 April 2021 For accounting a credit note is always responded by a debit note.

CMA Omkar.TIlve

CMA Omkar.TIlve (Querist)
Follow

12 April 2021 Thank You CA Seetharaman Sir
Thank You CA Altamush Zafar

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now