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Debit note under GST by buyer of goods

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anonymous

proprietor

143 Points Posted on 02 May 2022

Whether a buyer of goods can issue Debit note under GST?

I purchased goods from A. On receipt of goods, I found out that I was overcharged. Now my supplier is not ready to issue a credit note. I want to know if I can issue a debit note under GST and reduce the taxable value and corresponding input charged on it.

Replies (2)

Quick Summary

This discussion explores whether a buyer of goods can issue a debit note under GST when overcharged by a supplier who refuses to issue a credit note. While a buyer can record a debit note in their accounts, it won't reduce their tax liability or input tax credit (ITC) unless the supplier issues a corresponding credit note and reports it in their GSTR1 return. The recipient's ITC is dependent on the supplier's filings.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 02 May 2022

As per section 34 of the CGST act 2017 , only supplier can issue Credit Note or Debit Note , for reasons given in the section 34 of the CGST act , to reduce or to increase tax liability and file the return GSTR1 and GSTR3B
In your case , you can issue Debit Note and show in books of accounts, however no liability will be reduce in the return , unless he ( supplier ) issue credit note and file return .

Pankaj Rawat

GST Practitioner

29904 Points Posted on 02 May 2022

Yes completely agree with Mr. Prasad , As the credit of ITC available to Recepient on the basis of 2B ,So unless until the supplier report the Credit Note in GSTR 1 it won't be reflected in 2B .