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Regarding Debit note Liability

Rajiv (Senior Accounts Officer) (1548 Points)

17 July 2018

Good Evening to all Experts
I am hare again for get your valuable reply regarding above subject . Sir I want to ask about Debit note liability Sir following query regarding Debit Note below
Suppose Gst on purchase goods from Vendor named (A)=100 and we take credit of that amount 100.
Sir suppose if we make debit note to supplier A gst amount 20 . Then in that case will we paid 20 rupees gst amount as liability??? Please reply urgent

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6 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 17 July 2018

You have reduced ITC 20/- from your total ITC for that month.

suppose your Total ITC for June is 50 & you issue an debit note ( purchase return) in which GST is 20 , then your net ITC for June will be 30/- (50-20= 30 )

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HARSHIL JAIN (MD) (338 Points)
Replied 18 July 2018

hello pankaj sir

i had an query regarding issuance of DEBIT NOTE

i have read at so many places that u have to issue a debit note when their is differnce in RATE

in cases where the original incoive was issued at a value lower than the acutal value of goods. or post supply price negotiations.

Now in my case i have received some defective goods from my supplier so i have issued a DEBIT NOTE against it..

is that valid as it not a rate differnce case and just a PURCHASE RETURN

and if the issuance of debit note is correct then i have to show it in GSTR1 as well or not ??
as my GST CONSULTANT keeps on saying that only sales related things have to be mentioned in GSTR1 and in this case it is a PURCHASE RETURN so u dont have to show it in GSTR1

so please clear it sir

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 18 July 2018

yes you have to issue debit note for purchase return .

YOUR CONSULTANT IS CORRECT , GSTR1 IS ONLY FOR SALE RELATED, SO NO NEED TO SHOW YOUR PURCHASE RETURN DEBIT IN GSTR1

Rajiv (Senior Accounts Officer) (1548 Points)
Replied 18 July 2018

but sir can i not do this. that take it of full 50 and deposit 20 as gst liability ?

HARSHIL JAIN (MD) (338 Points)
Replied 18 July 2018

no sir i dont think thats a valid thing it is as good as claiming refund which isnt allowed on monthly basis.

only option you have is if your ITC IS 50 and tax liability is 20 then while filing gstr3b your 20liability will get adjusted and rest 30 will be carried forward for next month.