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Debit or credit notes

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ankush soni

student

65 Points Posted on 13 July 2020

dear experts,
how is it possible for composition dealer to send debit or credit notes in case of sales return or purchase return.
GST portal give the facility to file cmp-08 and ine cmp-08 form no facility to generate debit or credit note is provided. in such type of situation if a composition dealer has some sales return or some purchase return transactions with his dealers, how can he adjust the same through the generation of debit or credit notes.please guide on this.

Replies (3)

Quick Summary

Composition scheme dealers often face challenges when dealing with sales or purchase returns, as the CMP-08 form doesn't directly offer a facility to generate debit or credit notes. While initially it might seem impossible, it is indeed possible for composition dealers to issue credit notes for sales returns and debit notes for purchase returns. Adjusting these returns by reducing sales value and paying tax accordingly is crucial for accurate GST filing.

Ashish Gupta

24 Points Posted on 13 July 2020

No option

Vijayprakash P

776 Points Posted on 13 July 2020

The composite dealer cannot issue tax invoice to the customer. so debit note and credit note could not be issued.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 14 July 2020

@ Mr Ankush Soni.,

Yes... You are exactly correct.

The Composition dealer can be give Credit Note (sales return) and Debit note (purchase return). After issued Credit note You will less the values in Sales value and pay tax after that.