Issuance of debit note against purchase return

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HARSHIL JAIN

338 Points Joined July 2018

HELLO EVERYONCE PLEASE CLEAR MY QUERY SOON AS I HAVE TO FILE GSTR3B IN 2 DAYS

i had an query regarding issuance of DEBIT NOTE

i have read at so many places that u have to issue a debit note when their is differnce in RATE

in cases where the original incoive was issued at a value lower than the acutal value of goods. or post supply price negotiations.

Now in my case i have received some defective goods from my supplier so i have issued a DEBIT NOTE against it..

is that valid as it not a rate differnce case and just a PURCHASE RETURN

and if the issuance of debit note is correct then i have to show it in GSTR1 as well or not ??
as my GST CONSULTANT keeps on saying that only sales related things have to be mentioned in GSTR1 and in this case it is a PURCHASE RETURN so u dont have to show it in GSTR1

so please clear it sir

Replies (2)

Deepak Gupta

CA Student

15927 Points Joined May 2011

Your supplier will issue a credit note to you.

Sec. 34(1) of the CGST Act, says that,

Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.

A debit note issued by you (i.e. recipient) is not a relevant document for GST purposes.

The details of the credit note will be declared by the supplier in his GSTR-1 return.

The details will be visible in your auto-populated GSTR-2A.

Jinendra Sanghavi

Professional

15 Points Joined March 2017

What document is to be prepared while returning the goods? Is it valid if we prepare debit note and delivery challan to be sent with goods to be returned to the supplier who is out of state? Is e-way bill required to be prepared?