Debit note einvoice

Delivery Note with E invoice & E way bill .......are more preferable .............. ........

If nature purchase return then no need e-invoice for debit note against purchase. only debit note and e-way sufficient and take credit note from supplier against his(supplier's) sale.

otherwise you can issue Tax Invoice(Sale Invoice) with e-way bill and e-invoice.

You generate delivery challan for defective Goods out from your business premises .

And ask the supplier to provide a Credit Note.


Section 34(1) provides that where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that/those tax invoice(s) is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient one or more credit notes for supplies made in a financial year containing the prescribed particulars.

If your sales are above 5 crore then it's OK.

Two valid ways to return damaged goods to the Bangalore supplier:

1. Supplier issues a credit note (preferred):

• You move the goods on a delivery challan (Rule 55) with an e-way bill (inter-State, value above Rs 50,000).

• The supplier issues a credit note under Sec 34. If the supplier is e-invoice-enabled, the credit note must have an IRN.

• You reverse ITC once it appears in your GSTR-2B/IMS. Your debit note is only an internal commercial document, not reported in GSTR-1.

2. You treat the return as a fresh supply:

• Issue a tax invoice (with IRN, since your AATO exceeds Rs 5 crore) charging IGST, with an e-way bill from the invoice.

• The supplier takes ITC on your invoice. Useful when the supplier's credit-note time limit (Sec 34(2)) has lapsed or they won't issue one.

• Don't move return goods on a debit note alone. A debit note issued by a recipient is not a valid document for GST on a purchase return.