1. Customer’s Debit Note My Credit Note

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

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

4. 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

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

7. Section 34(1) Credit Note .. PTO

8. 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.

9. So, I have to give a Credit Note.

10. Let us see the GSTR 2

11. GSTR-2

12. Para 6 : of GSTR-2

13. 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

14. Now in Detail

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