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GST credit note

(Guest)

M receiving credit note from supplier whn turnover is exceeding specified limit..
now my supplier is not paying tax on it..
whether ths is valid as per GST law..?

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15 Replies

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

Not valid... What kind of credit note he is issuing... Post sale discount?? Then u hv to pay accordingly.... If goods receiving in actual then he has to make sale bill at fair price

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

And ur itc will also reduced accordingly

(Guest)

Ya..post sale discount..
bt I didn't get u..
I have to pay..? how..?

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

I mean u hv to pay only balance amount.. I. e sale minus post sale discount...

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

That is the policy of some suppliers... If ur purchase gets more than one certain limit then supplier provide post sale discount... Its all right... No problem at all...

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

In cement line company... Cement co like shree cement, jk cement etc provide post sale discount to its buyer

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

Now ur query is resolved?? Or any doubt

(Guest)

han..bt credit note is being issued in month different from tht of month of invoice..thn how can I net of.??

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

Take itc as per sale bill and reduce ur itc as per credit note.... Or u can add that in ur output tax liability when u received credit note

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

U got my point?? U can reduce ur itc or u can add it in output tax liability as per credit note

(Guest)

ya.. bt my qstn is how can I make reversal if in credit note tax element is not there..

Divakar (Student CA Final ) (11857 Points)
Replied 06 March 2018

If tax element is not in credit note then no treatment in GST... No need to reversal of gst itc in that case.... Only pass entry Supplier A/c dr 100 to discount income 100.....that is ur income and suppliers balance get reduced automatically.... And suppliers upload credit note in their GSTR1... So no treatment u hv to do