![]() However, under the new system, such linking is not required. It should contain the original invoice number against which such a credit note is issued.It should be issued within the time limits as discussed in the next section.Also, all the debit notes and credit notes issued under section 34 of the CGST Act need to be reported to the IRP for e-invoicing.Ĭonditions for the issue of a credit note under GST are: He can easily reduce his tax liability without going through any tedious task of claiming refunds. It is a convenient way by which a supplier can amend his originally issued tax invoice. Corresponding details will automatically reflect in the GSTR-2B and GSTR-2A of the recipient. The credit note generated earlier can be amended, and the same should be reported in the monthly GSTR-1. Cancelling any pending payments against invoices.Īll the details of credit notes issued during the month should be submitted in GSTR-1 of the respective month.The quantity received by the customer is less than the one which is mentioned in the tax invoice.Give a post-sale discount to the buyer.Erroneously collected higher charges from the buyer or buyer paid amount is more than invoiced value.On account of sales returned by the buyer due to quality issues, service rejection, or damaged goods receipt.Some of the common reasons for which the seller issues a credit note are: ![]() Section 34(1) of the CGST Act says that when a tax invoice is issued, and the same is required to be amended to reduce the tax liability mentioned in it, the supplier can issue a credit note. A debit note reduces the buyer’s liability, and the seller issues the credit note as an acknowledgement to the debit note raised by the buyer. ![]() It is not precisely a refund but acts as a replacement for a refund wherein the customer can buy the products later without paying for them. ![]() After the supplier’s issue of the tax invoice, if there is any reduction in the taxable value of the goods supplied, he may issue a credit note mentioning the prescribed particulars. A credit note is a document given by one party to another mentioning that the sender credits the other party’s account in his books. ![]()
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