INTER STATE PURCHASE CREDIT NOTE ISSUED

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This query is : Resolved

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This discussion addresses the challenge of adjusting IGST credit notes received for inter-state purchases that have ceased. The user stopped inter-state purchases in April but received credit notes in August. They are seeking guidance on how to adjust these IGST credit notes, particularly if there are no current inter-state sales or purchases, and whether they can be used to reduce local purchase values or if IGST ITC needs to be reversed.

raghavendra b

raghavendra b (Querist)
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20 September 2020 DEAR SIR,

WE HAVE STOPPED INTER -STATE PURCHASE FROM APRIL, NOW THEY HAVE ISSUED CREDIT NOTES, MY QUESTION IS HOW TO ADJUST IGST CREDIT NOTES BECAUSE THERE IS NO INTER-SATE SALES OR PURCHASE UNTIL NOW THEY ISSUED CREDIT NOTE IN THE AUGUST MONTH HOW TO ADJUST THESE CREDIT NOTES TO REDUCE THE VALUE OF THE LOCAL PURCHASES OR ANY OTHER WAY TO ADJUST THESE CREDIT NOTE PLEASE HELP ME AND GUIDE US

REGARDS

Lekhraj sood

Lekhraj sood (Expert)
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20 September 2020 What is the reason of credit note? What is the date of invoice and the credit note?

raghavendra b

raghavendra b (Querist)
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20 September 2020 DEAR SIR,

RATE DIFFERENCES AND DISCOUNT ADJUSTMENTS PREVIOUS YEAR MEANS APRIL 2019 TO MARCH 2020. I HAVE BALANCE OF 247873/- CGST IN THE ELECTRONIC CREDIT LEDGER . CAN I ADJUST THE IGST AGAINST RS. 13555/-

CLARIFY ME

Lekhraj sood

Lekhraj sood (Expert)
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20 September 2020 You have to reverse IGST ITC. Now if you do not have IGST credit balance to debit then you can reverse CGST balance to that extent.

raghavendra b

raghavendra b (Querist)
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20 September 2020 THANK YOU SIR, FOR YOUR REPLIES

REGARDS

CA PARTH SHAH

CA PARTH SHAH (Expert)
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20 September 2020 As per section 15(3), The value shall not include discount even after the supply has been effected, provided that :

(i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and

(ii) input tax credit as is attributable to the discount has been reversed by the recipient of the supply .

So first you need to check whether you can actaully issue credit note for rate differences and discounts.

Lekhraj sood

Lekhraj sood (Expert)
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20 September 2020 CA Parath Shah ji
That is for the supplier to see.If the recipient is getting the credit note with GST then his compliance is only to reverse the ITC.

raghavendra b

raghavendra b (Querist)
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21 September 2020 DEAR SIR,

THE INVOICE DOES NOT INCLUDE DISCOUNT SOME TIME VARY IN DIFFERENCE IN RATES SOME TIME MAY BE DISCOUNTS TO BE ALLOWED THEY ARE NOT ISSUE CREDIT NOTE WITH IN TIME SO THIS IS THE PROBLEMS WE STOPPED PURCHASE MATERIALS FROM THEM THIS IS LAST ADJUSTMENTS TO CLOSE OUR CONTRACT FROM SUPPLIERS

REGARDS

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