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GST on credit notes post sale

CA Darshan Soni (D.P.BARBHAYA & ASSOCIATES) (150 Points)

14 August 2019

Receiver got credit note for post sales discount . Suppier has not charge GST on such credit note. Will receiver has to reverse or pay gst on such credit note ??

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7 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 14 August 2019

No...........

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Padmahas Niwas (ca) (251 Points)
Replied 14 August 2019

yes they have to reverse ITC for credit notes, it's common practice in automobiles sector

CA Darshan Soni (D.P.BARBHAYA & ASSOCIATES) (150 Points)
Replied 14 August 2019

but they have issued credit notes without charging GST. so what receiver have to do??

yash (accountant) (519 Points)
Replied 14 August 2019

if supplier gibe financial credit note then no need toreverae the credit but if they give cn with gst then u have to reverse that

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 14 August 2019

Kindly refer circular 92/11/2019 GST .
If supplier has issued Financial Credit , Recepient will not Reduce his ITC , book as income

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CA Arun Chhajer (GST Faculty @ Ministry of MSME Govt of India) (2813 Points)
Replied 15 August 2019

As per Swastika Educonsult View -

No Requirement to reverse the ITC. It is a financial credit note and not to be disclosed in GST Return at all. Reversal of ITC will come only when the Credit Note is issued with GST.