Debit note

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2017 Mr. X purchase material 25 Kgs at Rs.1000.00 per Kgs but bill receive at Rs.1100.00 Per Kgs under GST. There is rate difference of Rs.100.00 Per Kgs i.e. 25 Kgs X 100 = Rs.2500.00.
Mr. X issue debit note to supplier.
My question is Mr. X charge IGST @ 18 % on debit note value i.e. 2500 X 18 % = Rs.2950.00
Please reply on urgent.

CA Altamush Zafar

CA Altamush Zafar (Expert)
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03 August 2017 Debit or credit note issued by receiver of goods does not have validity under GST law. They can be issued due to business and accounting practices. Where debit or credit notes by supplier is issued only then it will have GST implications.