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Credit Note

bijo (Accountant) (302 Points)

01 January 2021

If supplier provided credit note without tax,how will be the treatment for it in our books of accounts and GST?

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6 Replies

prasad Nilugal (3914 Points)
Replied 01 January 2021

Why no tax ( GST) in credit note ?.

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bijo (Accountant) (302 Points)
Replied 01 January 2021

The reason they are telling that,it was a damaged goods and they can't sell it any more.

prasad Nilugal (3914 Points)
Replied 01 January 2021

Ok , but earlier supplier issued tax Invoice charging GST and then after that goods were not sent due damage ,and credit note pass without GST , Is it correct ?.

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 01 January 2021

Adjust in the taxable amount , if any damage caused , but raise with GST also!

chandra bhushan (8 Points)
Replied 02 January 2021

If supplier does not mention tax component in credit note, he can not reduce tax liability in that transaction. He will have to pay tax on original value. Therefore credit note issued has no gst consequences.