Credit Notes From Supplier

This discussion addresses how to handle credit notes received from suppliers that appear in GSTR-2A when filing GSTR-3B for November 2020. The advice suggests passing a debit note in your books to offset the supplier's credit note, thereby reducing the purchase value and the corresponding Input Tax Credit (ITC). The GST amount from the credit note needs to be reversed in the GSTR-3B of the month it was received, either by reducing the current month's ITC or by showing it in other reversals if the reversal amount exceeds the current ITC.