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GST DEBIT NOTE CREDIT NOTE

NAMRATA (STUDENT) (84 Points)

10 October 2020

Dear Sir,

Can Recipient of Goods/Service prepare Debit Note & enter the details iN GSTR1

In case of Rate Difference i.e. Amt Paid is less than Bill Amt

Or Purchase Return of Goods of (Rejection of Goods (Full Or Partial Rejection)

Thanks

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2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14167 Points)
Replied 10 October 2020

Please refer section 34 of the CGST act 2017 . Only supplier can issue Debit Note -Credit Note under GST act for reason specified in section 34 of the CGST act . How recipient will file GSTR 1 , Not possible . GSTR 1 is for Outward supply .

narendra (Accountant) (275 Points)
Replied 10 October 2020

If the adjust leads to increase in purchase and therefore increase in ITC, then you need to request the Supplier to issue you a Debit Note (credit note for you) so that ITC is captured in his R1 filing and thus in your 2A.

If the adjustment reduces your purchase value and therefore your ITC, you can still request supplier to issue a credit note to you. But if he is Not ready to issue the Credit Note and you are going to adjust the difference in your payment then, you can raise a Debit Note in your books and reduce your ITC in GSTR-3B to the extent of the difference.