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Credit note

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Abhishek Selvam O

374 Points Posted on 23 August 2020

If I sold goods and some were returned and I dint issue credit note instead supplier issued debit note is it enough or should I also credi note?

And even if I does not issue credit note can I reduce from outear in that month 3b or only if I give credit note I can reduce?

Replies (3)

Quick Summary

This discussion clarifies the necessity of issuing a credit note when goods are returned, even if the supplier issues a debit note. It explains that for GST purposes, the supplier must issue a credit note to reflect the reduction in tax liability in the recipient's GSTR-2A. Failing to issue a credit note means you cannot reduce your output tax in GSTR-3B for that month.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 24 August 2020

In GST for the supplier who is liable to issue vredit/debit note ( Refer Section 34 of CGST Act) , there is reason to it.
When supplier issue the CNT/DNT & upload his GSTR 1 , then only the effect of same is get reflected in GSTR 2A of Recepeint.
So yes you are required to issue Credit Note .
Supposing on the basis of Debit from your supplier you reduce your tax liability in GSTR 3B , but what about GSTR 1 .......