ITC of Debit note?

Are you asking about Purchase return (or it's / inwards related)...?

if Yes...

Less the debit note Tax values in Your ITC value...

If You have received Debit Note, that means purchase return, then, ITC has to be reversed. 

If you have issued debit note, that means you have added extra or additional claim towards the receipt of the already made sales by you, then such amount of GST has to be disclosed as output liability and discharged accordingly.

Originally posted by : CA Vijeta Nathani
	If You have received Debit Note, that means purchase return, then, ITC has to be reversed.  If you have issued debit note, that means you have added extra or additional claim towards the receipt of the already made sales by you, then such amount of GST has to be disclosed as output liability and discharged accordingly.

 

I think You are wrongly said or mismatch words....!!!

Originally posted by : S ELAVARASI
	Originally posted by : CA Vijeta Nathani If You have received Debit Note, that means purchase return, then, ITC has to be reversed.  If you have issued debit note, that means you have added extra or additional claim towards the receipt of the already made sales by you, then such amount of GST has to be disclosed as output liability and discharged accordingly.   I think You are wrongly said or mismatch words....!!!

I am Sure, I am Correct. However, I would like your suggestion if you have another point of view.

Originally posted by : CA Vijeta Nathani
	If You have received Debit Note, that means purchase return, then, ITC has to be reversed.  - Debit note if received -->>> it's from Customers then Its Sales/Outwards return and it will less in Sales values... it's accountable as Credit note... If you have issued debit note, that means you have added extra or additional claim towards the receipt of the already made sales by you, then such amount of GST has to be disclosed as output liability and discharged accordingly. - Debit note if Issued -->> It's to Supplier then it's Purchase/Inward return and it will be less in ITC values in Purchase invoices. It's accountable as Debit note...

 

Pls correct if im wrong...

Yes... I agreed to Mrs Elavarasi's reply...


You are exactly correct Elavarasi...

As per CGST Act,

The language of Sec. 34(3) is ..

The debit note SHALL be issued by SUPPLIER. In other words, sec. 34(3) gives exclusive power to issue the debit note to the supplier only. It nowhere states that the debit note can be issued by the recipient also.

So, If i have received Debit note (i.e. credit note for my vendor), that means I had purchased something, It is my purchase return and I have to reverse ITC.

And, 

In the same way, If I have issued debit note, means I had made sales, now the invoice issued was for less amount. and I have to further debit the customer's Account. Hence, this will increase my liability.

Yes.... As per Your definition and it's way may be acceptable...


but, What about the query...?

It's as per Your 1st view or 2nd view...?

As the person raising query, has mentioned the word "ITC" , I believe it to be "Purchase Return"

Thank You Mam.,

Thank You for Your inputs...


If Purchase return then Purchaser issued Debit Note and Seller give Credit Note...


If Seller give Credit note to recipient then recipient received Credit note from Supplier

&
He (recipient / you) will book it as DEBIT NOTE...

Thank You for the Details Sir...

Exactly, As per CGST Act, Credit note or debit note shall be issued by supplier. Credit note by my supplier - Debit note for me - Purchase Return (Reversal of ITC) Debit note by my supplier - Credit note for me - Additional claim of purchase (Take ITC of Additional ITC) Credit note by me(Because, I am Supplier) - Debit note for my Customer - Sales Return (Claim ITC) Debit note by me(Because, I am Supplier) - Credit note for my Customer - Additional Claim in addition to sales (Increase in output liability) The matter is not what is issued by my supplier, matter is which note it will be, to me.