Customer’s Debit Note My Credit Note

Customer – Vendor ? In this example I am a maker of Corrugated Boxes / LED Lights / Washing Machine Parts My Customer is LG / Samsung / Maruti / Honda

Reasons for Customers Debit Note Rate Variation Qnty Variation Calculation variation Tax rate variation Freight Variation Segregation Charges / Penalty if any

SoP possible He sends a letter ? And request me for Credit Note ? And waits indefinitely. Usually , he wont. He orders by a letter ? And orders that I have to send my Credit Note. Else payment blocked He Might He Debits in his books a Debit Note. He loads it on GSTN and I can approve it. Sends the balance payment himself

What is a Credit Note ? Sec 2(37) CGST Act

Section 34(1) Credit Note .. PTO

Conditions in Section 34 34. (1) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.

So, I have to give a Credit Note.

Let us see the GSTR 2

GSTR-2

Para 6 : of GSTR-2

Slots are available, for DN/CN but as per Sec 34, only supplier can issue a DN/CN So, I will make this and file it here

Now in Detail

Model 1 : LG/Samsung sends me a Purchase Return invoice No problems Make MRR as usual ( in Customer Return flag ) Pass “Customer Rejection” Invoice