Introduction

Debit Credit Note Rules as per Tax Invoice, were released for GST on 18th May 2017. The documents issued like GST Tax Invoice, Bill of Supply, Receipt Voucher, Payment Voucher, Refund Voucher, Delivery Challan, GST Revised Tax Invoice, Debit Credit Note & Tax Invoice in special cases should be unique for a financial year.


Meaning

  • A Debit/ Credit note serves the purpose of accounting adjustment.
  • It is used for settling the correct amount of value and tax for any invoice issued in earlier periods.
  • It is to be disclosed in Table 9 of GSTR 1. Table 9 of GSTR 1 captures original information of debit/credit note issued as well as amendments to such information reported in earlier tax periods.
  • When you furnish a revision of a debit/ credit note, you shall mention the details of original debit/ credit note in the first three columns of this Table.

Credit Note under GST

  • When a person returns certain supplied goods or in case of downward revision in the invoice value, the supplier issues a credit note in favour of the person to the extent of the value of the goods returned.
  • This return may be due to goods not being up to mark or quality of goods being deteriorated.
  • It is in the case where the tax charged in the invoice is higher than the actual taxable value.

Treatment of credit note under GST

  • Credit Note is issued by a taxable person who has earlier issued a tax invoice for supply of any goods and/or services
  • It is issued where tax invoice has charged excess value and/or excess tax charged than required,
  • The Note shall contain the prescribed particulars.

Thus, a credit note serves the purpose of accounting adjustment to settle the correct amount of value and tax.

Debit Note under GST

  • Where a person delivers extra goods to the purchaser or the consideration falls short due to any reason, then the seller issues a debit note.
  • It is the case of upward revision of invoice value.
  • It is in the case where the tax charged in the invoice is less than the actual taxable value.

Treatment of debit note under GST

  1. The debit note is issued by a taxable person who has earlier issued a tax invoice for the supply of any goods and/or services,
  2. It is issued where tax invoice has charged short value and/or short tax charged than required,
  3. The Note shall contain the prescribed particulars.

Thus, a debit note serves the purpose of accounting adjustment to settle the correct amount of value and tax.

Particulars of Debit Credit Note

  • Name, address, and GSTIN of the supplier
  • Nature of the document
  • A consecutive serial number
  • Date of issue of the document
  • Name, address and GSTIN or UIN, if registered, of the recipient
  • Name and address of the recipient
  • Address of delivery, along with the name of State and its code, if such recipient is unregistered
  • Serial number and date of the corresponding original tax invoice or, as the case may be, bill of supply;
  • GST Value of a taxable supply of goods or services, GST rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and
  • Signature or digital signature of the supplier or his authorized representative

Special Provisions

Any debit note issued for tax payable in following cases shall prominently contain the words “INPUT TAX CREDIT NOT ADMISSIBLE”:

  • Determination of tax not/ short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any wilful misstatement or suppression of facts given under Section 74.
  • Detention, seizure, and release of goods and conveyances in transit under Section 129.
  • Confiscation of goods or conveyances and levy of the penalty provided under Section 130.

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