Debit note to Supplier if Credit note not issued by Supplier, Goods and Services Tax - GST

[Prem Choudhary]

Dear Expert

We have faces the issue for reversal of ITC in case of payment is not made to Supplier within 180 days of invoices and it is very painful to trace every month. The reason of hold amount may be diff. reason but major reason is quality of materials. and also the aging of vendor is increasing and vendor reconciliation is always open.

we have follow-up with the supplier but they are not issuing Credit Note.

please advice on above case how it is dealt with-

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

You may issue debit note.

[Prem Choudhary]

Sir with or without GST..

[DR.MARIAPPAN GOVINDARAJAN]

With GST

[Ganeshan Kalyani]

As per Section 34 of CGST Act, 2017 a supplier has to issued Credit Note or Debit Note as the case may be. However, a buyer can issue debit note with the reference of credit note issued by the supplier.