Posting again - GST Credit Note or Financial Credit Note

Sankara Subramanian (Director) (51 Points)

13 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 by the third party manufacturer (external manufacturer) 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 instead of a Financial Crefit or Debit Note. We feel that a Finanancial Credit or Debit note is sufficient.

We seek clarifications from experts in this forum on whether Financial Credit / Debit Note is acceptable.