Debit note

This query is : Resolved

Bharath CV (Querist)
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20 April 2009 Dear experts,
Please and anybody guide below mentioned issue:
While purchasing the materials, the CST rate was @3%(Interstate purchases). Now they have raised a debit note (in March,09) as they didn't supplied those invoiced materials. Now CST rate is 2%.
Please clarify whether debit note should raised for 2%or 3%. (My confusion is invoice raised for 3% but debit note raised for 2%. Is this correct)

Regards,
Bharath CV

Jaina Shah

Jaina Shah (Expert)
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20 April 2009 No, this is not correct, you had made payment to the party @ 3%, this was your cost, CST on purchase cannot be claimed as set off. Now since the supplier has not delivered the goods, you have to raise the debit note of Amt considering CST rate as 3%