In GST how to treat 'Debit Note' received from Buyer.

On the basis of debit note received from the supplier, you need to raise credit note in your system.  Thereafter, you need to show such credit note entries in GSTR 1 under credit note tile.  In GSTR 3B you need to reduce your liability up to extend of credit notes booked.  Alternatively, you may also it input tax credit instead of reducing tax liability and set it off. 

No you cannot reduce your ITC because your dealer must have reduce his ITC .

As per Section 34 of CGST Act the Supplier can issue Debit/Credit note.

So even though your dealer have issued the debit note you are required to issue Credit Note for the same & report it in your GSTR 1 and reduce your output tax in your corresponding GSTR 3B.

Originally posted by : Pankaj Rawat
	No you cannot reduce your ITC because your dealer must have reduce his ITC . As per Section 34 of CGST Act the Supplier can issue Debit/Credit note. So even though your dealer have issued the debit note you are required to issue Credit Note for the same & report it in your GSTR 1 and reduce your output tax in your corresponding GSTR 3B.

 

Thanks for helping me out. Pankaj Ji

Yes I'm the supplier here & my party, the recipient has issued me debit notes.
You are suggesting that I've to raise a credit note here, Am i correct.?

And is it advisable to raise credit notes against all 10 debit notes (2019-20) in my
quarterly September GSTR-1 as i've already filed GSTR-1 for June or should i amend June GSTR-1.

Also Is there any time limit for utilizing missed debit notes ? Thanks

DEAR ANDY

YES CORRECT.

YOU CAN RAISE ONE CREDIT NOTE AGAINST ALL THE 10 DEBIT NOTE. BUT THE LIMITATION OF PORTAL IS THAT IT ACCEPTS ONE CREDIT NOTE AGAINST ONE BILL. MEANS YOU CANNOT ISSUE ONE CREDIT NOTE AGAINST SEVERAL BILLS. INFACT THE LAW HAS BEEN AMENDED THAT IT CAN BE ISSUED AGAINST SEVERAL BILLS, BUT PORTAL DO NOT ACCEPTS IT.

YOU CANNOT AMEND THE GSTR-1 JUNE-2020, AS THE AMENDMENT CAN BE DONE ON TRANSACTIONS WHICH ARE ALREADY DECLARE THEREIN. SO YOU CAN ADD THOSE CREDIT NOTE WITH ITS ORIGINAL DATE (ie 2019-20) IN SEPT-2020 month GSTR-1.

YES YOU CAN DO ANY OMISSION/RECTIFICATION FOR FY 2019-20 TILL SEPT-2020 (REFER SECTION 34 CGST)

 

 

@ Pankaj Rawat

Thanks for your time & resolving my queries Pankaj Ji, It was really helpful indeed.

Regards

Sir one more thing, can i also issue Cr notes for the year 2018 -19 now.?

I read somewhere that there's isn't any time restriction for debit credit notes.

AS PER SECTION 34 OF CGST ACT , NO..YOU CANNOT ISSUE GST-CREDIT/DEBIT NOTES FOR 2018-19.

YOU CAN ISSUE BUT CANNOT REDUCE YOUR TAX LIABILITY, SO HAVE BEAR THE GST THEREIN.

NOTE : IF YOU ARE GOING TO ISSUE CREDIT NOTE, THEN ITS BETTER TO ASK YOU DEBTOR/CLIENT TO ISSUE CURRENT DATE BILL TO YOU.