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Credit notes

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ROHIT KUMAR

prop.

227 Points Posted on 23 July 2020

whether we have to reverse gst input tax credit on the credit notes without GST received by a dealer , credit notes are of rate difference, turnover discount, product discount ets ?

Replies (5)

Quick Summary

This discussion clarifies the rules for reversing GST input tax credit when receiving credit notes without GST. It explains that input tax credit can be reversed if the credit note appears in GSTR 2A, indicating you're not utilising it. The reversal of output GST liability depends on the credit note's reason, with rate differences requiring GST, while turnover or product discounts need to be linked to invoices under Section 15 of the CGST Act.

Ramya Bhat

205 Points Posted on 23 July 2020

If your dealer had given credit note and if that is reflecting in GSTR 2a then you can reverse that input tax credit as you are not aviling that....

Vijayprakash P

776 Points Posted on 23 July 2020

The reversal of output GST liability is not allowed in all cases of Credit note.....

Pankaj Rawat

GST Practitioner

29904 Points Posted on 23 July 2020

In case of Rate Difference , yes the credit should be issued as per Section 34 of CGST , the GST less.

But in case of Turnover & product discount , the GST less CNT is to be issued only when if such credit note can be linked to relevant invoices.(Section 15 CGST Act)

So ask your supplier issue GST less Credit in case of Rate Difference.