CCI Online Learning
What do you want to learn today?
     
CIBIL

Upgrad

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Accepting credit notes


Mackie (Entrepreneur )     20 November 2020

Mackie
Entrepreneur  
 4 likes  149 points

| My Other Post

Hello,

If a service provider has raised credit notes then how to accept those credit notes? Do we need to less the total credit note amount from tht months input tax claim? Or we need to pay the total credit note amount in gstr3b like a normal invoice? 

avater

Aditi Kaur (Practising CA)    21 November 2020

CCI Online Learning offers a library of courses for CA/CS/CMA Aspirants from the best faculties in India. Our top notch courses aim to make your journey from a student to a professional, a successful one. To promise a successful career as a professional CCI Online Learning also offers programs like Financial Modeling, MS Excel, IFRS/IND AS Certification Courses that will help you take your career to the next level. Check out the free demo videos here https://www.caclubindia.com/coaching/


avater

satender (non)     20 November 2020

satender
non 
 2 likes  114 points

View Profile | My Other Post

Service provider is creditor or debtor

avater

Mackie (Entrepreneur )     20 November 2020

Mackie
Entrepreneur  
 4 likes  149 points

View Profile | My Other Post

Originally posted by : satender
Service provider is creditor or debtor

Service provider has raised the credit notes. 

avater

18E0343 V Pradhish   20 November 2020

18E0343 V Pradhish

 7 likes  69 points

View Profile | My Other Post

Which means it is Debit Note for you. You need to less the total note amount from that month Input tax claim or subsequent month.
thank you.

1 Like
avater

Mackie (Entrepreneur )     20 November 2020

Mackie
Entrepreneur  
 4 likes  149 points

View Profile | My Other Post

Originally posted by : 18E0343 V Pradhish
Which means it is Debit Note for you. You need to less the total note amount from that month Input tax claim or subsequent month.thank you.

Great! Thnks fr the reply Pradhish!

avater

Mackie (Entrepreneur )     20 November 2020

Mackie
Entrepreneur  
 4 likes  149 points

View Profile | My Other Post

Originally posted by : 18E0343 V Pradhish
Which means it is Debit Note for you. You need to less the total note amount from that month Input tax claim or subsequent month.thank you.

Hello you saying reduce the amount from tht months input tax claim while in 2B under which these credit notes are mentioned it says: Part-B : ITC Reversal – Credit should be reversed in relevant headings in GSTR-3B. What does this mean? Does it mean the same thing you said? Adjust the credit note amount while claiming input tax in 3B?

avater

18E0343 V Pradhish   20 November 2020

18E0343 V Pradhish

 7 likes  69 points

View Profile | My Other Post

Yes.
- You can less the note amount from ITC
( Purchase - Debit Note = Net purchase )

1 Like
avater

Mackie (Entrepreneur )     20 November 2020

Mackie
Entrepreneur  
 4 likes  149 points

View Profile | My Other Post

Originally posted by : 18E0343 V Pradhish
Yes.- You can less the note amount from ITC ( Purchase - Debit Note = Net purchase )

Thanks, Pradhish! Same would be the case if I am filing a nil return fr Oct? I can deduct the amount from the total input tax I will be claiming this month? So the idea is to not claim the credit note amount from the available input tax in 2A. Hope I got this right. 

Do I need to select D. Do you have any claim/reversal of Input tax credit(ITC) on purchase of goods or receipt of services ? (Table 4) while filing GSTR 3B?

Do I need to mention the credit note details in Table 4(B)(2) of FORM GSTR-3B?

avater

18E0343 V Pradhish   20 November 2020

18E0343 V Pradhish

 7 likes  69 points

View Profile | My Other Post

Mackie!
1- If you have any purchases in Oct'20 make formula as ( Total purchase - Note ) and fill the upcoming amount in Table 4(A)(5) all other ITC.there is no compulsion to be mentioned in 4(B)(2).
(So the Net ITC available (A)-(B) will be your (Purchase-note amount)

2- If you are willing to show it in Table 4(B)(2) then you are not advised to minus the note amount in Table(A)(5).
(So the Net ITC available (A)-(B) will be your (Purchase-note amount)

Both the scenario have no issues.

As per my view - 4(B)(2) is for reversing ITC which you've claimed wrongly/Twice per input.

1 Like
avater

Mackie (Entrepreneur )     20 November 2020

Mackie
Entrepreneur  
 4 likes  149 points

View Profile | My Other Post

Originally posted by : 18E0343 V Pradhish
Mackie! 1- If you have any purchases in Oct'20 make formula as ( Total purchase - Note ) and fill the upcoming amount in Table 4(A)(5) all other ITC.there is no compulsion to be mentioned in 4(B)(2). (So the Net ITC available (A)-(B) will be your (Purchase-note amount)2- If you are willing to show it in Table 4(B)(2) then you are not advised to minus the note amount in Table(A)(5).(So the Net ITC available (A)-(B) will be your (Purchase-note amount)Both the scenario have no issues. As per my view - 4(B)(2) is for reversing ITC which you've claimed wrongly/Twice per input.

Thanks for the clarity Pradish! You explained it well! Actually I also realized that Table 4(B)(2)  is for reverse charge if I have availed the Input tax mentioned in credit note but since I have not availed the input tax I can simply deduct the credit note amount from available input tax. 

I have some accumulated input tax since April 20 which I will be claiming this month. Will deduct the credit note amount from the available input tax and mention the rest in Table 4(A)(5). Hope this is correct and I am doing it the right way. 

Once again thnks for the detailed explanation.

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Bajaj Finserv


Trending Tags