TaxTMI 
TaxTMI 
Dear Experts,
Kindly suggest :-
Whether Debit note & credit note can be issued by recipient of supplies OR can only be issued by Supplier only.
Whether ITC is available on both the Debit & Credit notes, and to whom ITC is available.
Debit & credit Notes -Issue & ITC
22 Jun 2017 
5 Replies 
5501 Views Asked by
Debit and credit notes: recipients may issue notes and Input Tax Credit is claimable subject to supplier documentation.
The GST invoicing rules do not expressly limit issuance of debit or credit notes to suppliers, and recipients may issue such notes; accounting practice requires suppliers to issue credit notes to reconcile shortages or value adjustments. Input Tax Credit is claimable on the basis of debit and credit notes subject to registration and documentary conditions, with proportionate credit where supplies include exempt and taxable elements; one view emphasises that ITC is availed on the basis of supplier-issued debit notes under the statutory scheme, noting the relevant rules were not yet notified. (AI Summary)
The GST invoicing rules do not expressly limit issuance of debit or credit notes to suppliers, and recipients may issue such notes; accounting practice requires suppliers to issue credit notes to reconcile shortages or value adjustments. Input Tax Credit is claimable on the basis of debit and credit notes subject to registration and documentary conditions, with proportionate credit where supplies include exempt and taxable elements; one view emphasises that ITC is availed on the basis of supplier-issued debit notes under the statutory scheme, noting the relevant rules were not yet notified. (AI Summary)