Vendors Credit Note My Debit Note

Customer – Vendor ? Case 1 Finsys user name is Akito Kowa Packaging Ltd He makes Flexible Packaging in NCR Delhi His vendor is Uflex ( supplier of Flexible raw film) Case 2 Customer : Washing Machine parts maker Seller : Plastic Granule Seller ( Raw Material )

Example # 1 : Rate excess problem 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 ( excess charged was Rs 2 per kg on Film/Granules) He charged Rs 110,000 Actual should have been Rs 1,05,000 So, CN for Rs. 5,000

Example # 2 where the goods supplied are returned by the recipient, or Akito Kowa has returned Rs 3000 of Raw Material due to defect/QC problem or anything He charged Rs 20,000 on the bill I have to accept that bill in GSTR 2 Later , I reject and send back the goods worth Rs 3000 I cannot edit his bill I cannot send him a debit note ( ?? ) So, request him for a CN for Rs 3,000

Example # 3 Goods in Transit loss / Short Supply by vendor “….where goods ….supplied are found to be deficient…”, Uflex sent 15,000 kg as per its bill. But I received only 14,600 kg. So, Deficient by 400 kg. He charged Rs 1,50,000 on the bill. I have to accept that bill in GSTR 2. But, I need to cover my loss. I cannot send him a debit note ( ?? ) So, request him for a CN for 10 x 400 = Rs 4,000.

Example # 4 : Service Provider ISO 9001 Consultant. Bill raised 2 lakhs. Filed on GSTR1 We pass the bill for Rs 175000. “….where ….services….supplied are found to be deficient…”, He charged Rs 2 lakhs on the bill. In GSTR-1 I have to accept that bill in GSTR 2A/ 2. But, I need to cover my loss. I cannot send him a debit note ( ?? ) So, request him for a CN for 25,000

Who will make ? 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.

Now in Detail

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.

How to do in Finsys ?

Case 1 : Rate Difference 2/kg Regd person ( Uflex ) will have to make the Credit Note We will in Finsys post this in the 31 series debit note This debit note is same as in Pre-GST period It will hit your accounts but not hit the GST portal GST-3B GST-2

Why this is done ? If we make the “58” series Debit Note It will also load into the GSTN portal And there will be a double Debit in GSTN Portal He will give a credit note, and I approve it If by mistake, I give a 58 series DN, then Modvat ITC will be adjusted twice Hence, make We will in Finsys post this in the 31 series debit note

Let us see the GSTR-2 and 1

GSTR-1

DN in case of unregistered

Para 9 : His debit notes to his own invoices of prior period

And he will give numbering here

Govt Notes to GSTR-1

Can I not make a Debit Note ?

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

Now in Finsys

This was purchase of

Consumables 50 series Purchase of goods

Ordinary Quick Voucher

Selce

This was the purchase voucher

This is the Debit note ( 31:non GST )

Print of DN-non GSTN

Benefit : Vendor Account Knock off

Benefit 2 : It will not go to GSTN portal Since customer is not allowed to do that