Treatment of Debit note against goods returned in GST Return

When returning goods to a supplier and issuing a debit note, you generally do not need to report this in your GSTR-1, as it relates to outward supplies. Instead, you should obtain a credit note from the vendor. This credit note will allow the supplier to adjust their GSTR-1, and you can then reduce your Input Tax Credit (ITC) accordingly. An accounting credit note can be issued for internal reconciliation.