Debit note and credit note - GST

[Asked by Guest]

Sir,

We have the following query in respect of charging GST on sales return / purchase return/ price reduction/price increase

1.Sales returns through Delivery advice

Some of the customers sending the customer returns in delivery challan without GST

2. Sales returns through Tax Invoice

Some of the customers sending the customer returns in tax invoice with GST for which we need to

3. Price decrease/reduction

The price decrease / reduction credit note to be issued without GST. Since already we have charged GST on the higher price and customer availed the ITC credit we need to issue the credit for the material value.

However some of the customers insists price reduction credit note also with GST only.

4. Price Increase debit note

The price increase debit note to be issued with GST quoting the existing relevant supply invoice number.

5. Purchase returns

We are issuing the purchase returns invoice as soon as the material rejected by stores without GST

The vendors insisting the rejection invoice with GST.

Request your opinion in this regard.

What is the procedures to be followed for Sales return through delivery advice/ sales return through tax invoice

price reduction/ price increase/purchase returns

Regards

K Srinivasan

AI Summary

Credit and debit note obligations: suppliers must issue notes to adjust GST liability and reference original invoices.
Suppliers must issue credit and debit notes to adjust GST liability, referencing original tax invoices and showing taxable value and GST; suppliers report these in GSTR 1 to match recipients' GSTR 2. Delivery challan movements for returns are not supplies and attract no tax, with the supplier issuing the credit note. If returns are invoiced as supplies, valuation rules apply and invoice-route is generally discouraged. Price reductions use credit notes to adjust taxable value and GST; price increases use debit notes quoting the original invoice.