I need clarification in GST and also accounting

DEAR CHARTERED PERSONS


what is mean by debit note and credit note in GST. in gstr 1 there is one tab box is there debit note and credit note so what purpose we are using please explain me clearly with example




typically in accounting fundamentals debit note means purchase return credit note means sales return am I right???

please explain me
Replies (2)
Quick Summary
This discussion clarifies the use of debit and credit notes within the GST framework, particularly concerning GSTR-1 filings. While traditionally in accounting, debit notes signify purchase returns and credit notes signify sales returns, the GST Act (Section 34 of CGST Act) specifies that only suppliers can issue these notes for specific reasons. These notes are reported in GSTR-1 to adjust sales and purchase returns, and can also be used to amend invoice values directly.

Yes. You are right.

To adjust the sales returns and purchase returns, those can be used..

You can also use amend records and directly reduce the revised value of invoice
Your interpretation is correct, however,as per section 34 of the CGST Act only Supplier Can issue Credit Note or Debit Note , for the reasons mentioned in the section 34 of the CGST Act, so in GSTR1 filed by the Supplier will report all Debit Note or credit note as the case may be for a perticular tax period.
In other cases except reasons mentioned in section 34 of the CGST Act, one can issue Financial Debit or credit note.
please refer section 34 of the CGST Act.

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