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Debit Note last year

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venkatesh baikadi

23 Points Posted on 27 November 2021

this happend last year , as i joined newly here we are a contractor, we billed the client as per small purchase orders several times but when measurements taken the value less than tax invoice. so the party passed the debit notes but not sended & not informed us. by now, our debit balance is increasing and they said we have not that much amount. & we have debit notes raised.

1 .if they raised debit notes it should be reflected in gstr or not ? ( we did not received any debit notes from them)

now we want to rectify the Amounts.

2. how to decrease the party Amount ?

hoping for quick reply,

Thanks in advance.

Replies (3)

Quick Summary

A contractor billed a client for work based on purchase orders, but final measurements revealed the billed amount exceeded the actual value. The client issued debit notes but failed to send or inform the contractor. Now, the contractor's debit balance is increasing, and the client claims insufficient funds. The contractor seeks advice on whether these debit notes should be reflected in GST filings and how to reduce the outstanding party amount.

prasad Nilugal

GST Practitioner & Accounts

15150 Points Posted on 27 November 2021

As per GST law as a supplier you should issue Credit Note for rate and tax difference , and file GSTR1 , last month to issue credit note for F.Y 20-21 was September 21 .