1. Vendors Credit Note My Debit Note

2. 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 )

3. 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

4. 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

5. 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.

6. Example # 4 : Service Provider
ISO 9001 Consultant.
Bill raised 2 lakhs. Filed on GSTR1
We pass the bill for Rs
“….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

7. 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.

8. Now in Detail

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

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

11. 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.

12. How to do in Finsys ?

13. 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

14. 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

15. Let us see the GSTR-2 and 1

16. GSTR-1

17. DN in case of unregistered

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

19. And he will give numbering here

20. Govt Notes to GSTR-1

21. Can I not make a Debit Note ?

22. GSTR-2

23. Para 6 : of GSTR-2

24. Slots are available, for DN/CN but as per Sec 34, only supplier can issue a DN/CN

25. Now in Finsys

26. This was purchase of

27. Consumables 50 series Purchase of goods

32. Ordinary Quick Voucher

34. Selce

35. This was the purchase voucher

36. This is the Debit note ( 31:non GST )

37. Print of DN-non GSTN

38. Benefit : Vendor Account Knock off

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