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TMI BlogCredit NoteX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Team, If Transporter lost or damaged the goods and agreed by transporter to provide the credit notes then transporter shooud provide the credit note with GST or can issue the commercial credit note without GST. MK - Reply By Ganeshan Kalyani - The Reply = It would amount to tolerating an act of the transporter. GST is applicable on this. Tax invoice with GST to be raised on the transporter. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther to net of the original supply to customer you have to raise separate credit note with GST. - Reply By mk Jain - The Reply = Thanks for prompt reply but if i am not raising the debit note and transporter is issuing credit note then is it GST credit note or commercial credit note as total ( Value -Basic+GST) and my accounting is Basic +GST. Can we do ? MK - Reply By Ganeshan Kalyani - The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly = Only supplier of goods can issued credit note or debit note. The goods belongs to you and you want to recover money from transporter. So, in no case the transporter can raise debit or credit note. - Reply By Ganeshan Kalyani - The Reply = The transporter can raise credit note only against his transport charges. He may raise credit note assuming he is giving discount for the loss he has made. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In that case he can raise credit note with GST. But since the freight cost would be lower than the value of goods, the credit note amount would not get adjusted against the value of transport service. - Reply By Padmanathan Kollengode - The Reply = Mr MK Jain, the query is not clear. Kindly elaborate the exact transaction and against which amount, the transporter wants to issue credit note? - Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y By mk Jain - The Reply = Thanks to all for your valuable advise. Dear Padamnathan, I cleared goods worth Rs 1 lakh and some of the goods got damaged during transit. The customer has deducted that amount from my payment. Now I want to recover that amount from the registered transporter. He has agreed and issued a credit note without GST, whereas I am asking for GST credit note. Can he issue a cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit note without GST or should I issue a debit note for GST? MK - Reply By KASTURI SETHI - The Reply = Sh. M.K. Jain Ji, You have drafted the query incorrectly inasmuch as credit note 'with GST or without GST' is not the issue involved here. The issue involved here is whether it is liquidated damages or not. It is a separate service covered under Schedule-II at serial no. 5 (e) as rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advised by Sh.Ganeshan Kalyani Ji. You want compensation from transporter on account of damage caused to the goods during transportation. Have you executed any agreement with the GTA ? Whether it is liquidated damages or not ? It has to be determined on the basis of terms and conditions of the agreement, if any. In this context, go through the Board's circular No. C.B.I. C. Circular No. 178/10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2022-GST, dated 3-8-2022 . - Reply By KASTURI SETHI - The Reply = It is worthwhile to go through the following case law. It is applicable to the issue even in GST regime. NORTHERN COALFIELDS LTD. Versus COMMISSIONER OF CGST, C.E. CUS., JABALPUR - 2023 (1) TMI 934 - CESTAT NEW DELHI - Reply By KASTURI SETHI - The Reply = In this scenario, an assessee must know the difference between liquidated dam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ages and unlquidated damages. DIFFERENCE BETWEEN LIQUIDATED DAMAGES AND UNLIQUIDATED DAMAGES Liquidated damages are such damages as have been agreed upon and fixed by the parties in anticipation of breach of contract. Unliquidated damages are such damages as are required to be assessed. This is as per legal dictionary and should be read with Section 73 of the Indian Contract Act, 1872 - Reply By S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hilpi Jain - The Reply = The transporter mentions he will issue a credit note meaning that he wants to give a discount to you in his service cost for deficiency of service. You could take it. I am not sure why would you want a gst credit note? - Reply By mk Jain - The Reply = Thanks to all again sethi ji and shilpi for expert advise. MK - Reply By KASTURI SETHI - The Reply = In this scenario, comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensation is not income and hence not consideration. Therefore, out of definition and scope of supply. - Credit Note - Query Started By: - mk Jain Dated:- 30-5-2024 Last Replied Date:- 2-6-2024 Goods and Services Tax - GST - Got 12 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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