Credit & Debit Notes - GST or Financial ?

Sankara Subramanian (Director) (53 Points)

09 October 2024  

We manufacture our chemical products in third party facilities as we do not have our own. 

  1. During the manufacturing process the waste generated in sold to appropriate buyers identified by us and a credit note is raised for the billed amount excluding GST, that is a Finaicial Credit note.
  2. Where the manufacturer spends money out of his pocket for some sundry transportation or consumables he raises a Debit Note on us which excludes the GST. That is a Finaicial Debit note.

The manufacturer is now insisting that they have been asked by their auditor to raise a GST credit or debit note only. We feel that a Finanancial Credit or Debit note is sufficient.

GST credit or debit note will lead to unnecessary formalities of filing returns and taking credit.

Is this absolutely essential or will Financial credit or debit note suffice ?

Thank you in anticipation of a response.

Sankar.