Debit Note 19 20 period - Regarding, Goods and Services Tax - GST

[Ragavan Vijayakumar]

Dear Exports,

"A" Sales Goods to "B" for the month of "March 2020" Period of 2019-2020 Basic Value 20,000/- @ GST 18% @ 3600/-. "A" not filed GSTR-1 and GSTR 3B for the month of March 2020. "B" payment made to "A" bills for the month March 2020 and regularly follow for the not reflection GSTR-2A of ITC March 2020.

"A" March 2020 GSTR-1 Retrun filed on July 2021 (21-22) period. But "B" unable utilized the ITC amount , Because July 21 GSTR 2B shows in ITC - Ineligible for the above said amount.

now "A" request to "B" to issue the debit note for GST amount @ 3,600/-

Question 1: "B" issue debit note to "A" is correct ?

Question 2: "A" offer to "B" give debit note than you may collect money from "A'" @ 3,600/-

Kindly guide me issue debit note is correct. i am "B"

Regards

V.Ragavan

Posts / Replies

[KASTURI SETHI]

Debit Note (including supplementary invoice) and credit note can be issued by the supplier only as per Section 34 of CGST Act.

Recipient can issue debit note without GST implications. In other words, financial credit notes and debit notes can be issued by the buyer/recipient.

See Para No.D of Circular No.92/11/2019-GST dated 7.3.19.

[Ganeshan Kalyani]

Debit note issued by buyer becomes a credit note to a supplier. However, as rightly stated by Sri Kasturi Sir either credit note or debit note has to be issued by a supplier alone. So even if B has issued debit note for GST amount, A is also required to issue credit note.

[Shilpi Jain]

You could consider to take the input tax credit even if the supplier had disclosed it after the time limit under section 16(4) and contest the matter if required, since department has received its taxes and it is merely disclosure in GSTR-1 which was missed or done later which is a procedural lapse and should not lead to denial of credit

[Ganeshan Kalyani]

I agree with Shilpi Mam's view.