Purchase Return - Debit Note

Save Share

This query is : Resolved

Quick Summary

A trader returned goods to a seller using a delivery challan and e-way bill instead of a debit note. While the supplier must issue a credit note to reduce GST liability, the recipient should also issue an accounting debit note. This ensures proper accounting, reduces Input Tax Credit (ITC) accordingly, and records the reason for the return.

sankar ponnan

sankar ponnan (Querist)

28 July 2021 Sir / Mam

We are a trader. We returned the goods which were purchased earlier to the seller with delivery challan and e-way bill instead of issuing debit note.
Is there any issue?
Kindly advise me plz
thanks in adv

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 July 2021 No issues, it's only the supplier to issue credit note.

CA Altamush Zafar

CA Altamush Zafar (Expert)

29 July 2021 If you had previously entered purchase then you need to issue accounting debit note.

Udaya Chandran

Udaya Chandran (Expert)

30 July 2021 Though the supplier has to issue credit note in order to reduce the GST liability. The recipient has to issue Debit note for accounting purpose and to reduce the ITC to the extent of Debit note and also to record the purpose for issuing debit note.

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