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sandhya chavan   21 September 2021

What is credit note and debit note

what do mean by credit and debit note explain in simple way with example.
and who issues to whome and when they issues


 3 Replies

prasad Nilugal

prasad Nilugal   22 September 2021

Under GST law supplier can only issue Credit Note and Debit Note . As per section 34 of the CGST act 2017. Debit note credit note can be issued only the reasons given in the section 34. However we also issue Financial credit note and Debit Note apart from GST credit note and Debit Note as and when required by supplier and customer .
So credit note is issued when supplier supplies to goods to customer , and customer latter after receipt of Goods found goods some defective and return to supplier , in this case supplier will issue Credit Note to customer against the original Invoice ,of that amount that goods are return .
Similarly Debit Note is issued when goods sold by the supplier to customer, and latter found amount charged in the invoice is less than actual one , then supplier will issue Debit Note against original Invoice for balance amount payable .
You have refer section 34 of the CGST act for Debit Note and Credit Note under GST .
we issue Credit and debit notes for Goods defective return , less amount charged , less tax charged , Excess amount charged Excess tax charged , amount difference etc in original Invoice , and some other reasons also .
Sourav

Sourav (Student)     22 September 2021

Fully agree
sandhya chavan

sandhya chavan   22 September 2021

Thanks lot Sir

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