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 ?

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:

Debit note must reflect actual transaction — i.e., the value returned/refunded.
You cannot inflate the debit note in GSTR-1 to 80K if you are getting only 40K refund.
ITC reversal is required only to the extent you do not get credit/refund from supplier.
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