Can I amend Debit note(Purchase return) in next month's GSTR1 after receiving refund from supplier ?

I raised a EWB for Debit note/Purchase return of Rs.80K( 71429+8571(gst))  against return of goods to supplier .

On receipt of goods supplier is now refunding me only 50% value of goods (50% GST too) that too on condition if I upload the whole value I mentioned in EWB(80K) and show rest 40K as loss in my account .

As per supplier I will have to pay ITC reversal of whole 80K and show 50% loss in my account books .

But I think if I upload the whole amount in GSTR1 and show 50% loss in account books.,won't I will have to pay half of gst in ITC reverse from my pocket ?gst amount which supplier have not refunded me 

Who is right in this ? Supplier or me?

Can I upload D/N of same value as in EWB (80K) ,receive my half payment and than amend the same DN in next month’s GSTR1 so that I don’t have to pay extra ITC from own pocket ?

Replies (1)

Hey Prakhar, this is a classic GST debit note (purchase return) & ITC adjustment scenario—let’s break it down clearly:


Situation Recap:

  • You raised a debit note/EWB for Rs. 80K (including GST).

  • Supplier agrees to refund only 50% value + 50% GST.

  • Supplier says you must:

    • Upload full 80K debit note in GSTR-1.

    • Reverse full ITC (on 80K) on your side.

    • Show remaining 40K as a loss.

  • You are concerned you will pay GST on 40K loss from your own pocket if you follow supplier’s method.


Key GST points to note:

  1. Debit note must reflect actual transaction — i.e., the value returned/refunded.

  2. You cannot inflate the debit note in GSTR-1 to 80K if you are getting only 40K refund.

  3. ITC reversal is required only to the extent you do not get credit/refund from supplier.

  4. You should adjust your purchase return (debit note) value in GSTR-1 to reflect the actual refund value (40K + GST).


Can you amend Debit Note in next month’s GSTR-1?

  • Yes, GSTR-1 allows amendment of debit notes in subsequent months (within the same financial year).

  • So, if you initially uploaded 80K, you can reduce it later to 40K by amendment.

  • But uploading inflated value upfront can cause unnecessary ITC reversal on your side in that month.


What should be done ideally?

  • Upload debit note for the actual refund amount (50% or 40K + GST) in GSTR-1 of that month.

  • No need to reverse ITC on full 80K, only on the amount not refunded.

  • If situation changes, adjust by amending debit note in next month’s GSTR-1.


Who is right — Supplier or You?

  • You are correct in principle — you should not show full 80K if refund is 40K.

  • Supplier’s insistence to upload 80K and get you to bear extra GST from own pocket is not aligned with GST rules.

  • ITC reversal should be proportionate to actual refund and debit note value.


Summary:

Step Action
Initial GSTR-1 upload Upload debit note for actual refund value (Rs. 40K + GST) only
ITC reversal Reverse ITC only on difference not refunded (Rs. 40K GST part)
If change needed later Amend debit note in next month’s GSTR-1 accordingly

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