We supplied goods to Party A, who is located in Delhi, and we have duly reported this supply in our GSTR-1.
Subsequently, the customer issued a Debit Note towards rate difference without GST. The customer has already availed ITC on the original purchase invoice.
However, we issued a Credit Note with GST against the output tax already paid and accordingly reduced our output tax liability. Now, the customer has received a notice from the GST Department, asking them either to pay the tax amount or to submit a declaration duly certified by an auditor.
In this regard, we seek clarity on the appropriate course of action. We are not willing to issue an auditor-certified declaration.
CAclubindia
