Dear Respected Members,
I am working in organised retail sector. My concern is about Commercial Credit Note. We purchase goods from supplier and sell to retail customers. We claim supplier towards the discounts given to customers and the supplier pass credit note towards a portion of discount, not 100% of discount.
They passed credit note with out GST saying it is commercial credit note as they can not link the products to the original invoice.
Now, please help me to understand the meaning of Commercial credit note and what is our liability being receiver.
Thanking you all in advance
-- Bharath
Retailer Questions GST-Free Credit Notes; Must Link to Original Invoice for Input Tax Credit Adjustments A retail sector professional raised a concern about receiving a commercial credit note from a supplier without GST, as it wasn't linked to the original invoice. Responses clarified that under GST, credit notes must be linked to specific invoices, and suppliers should ideally issue credit notes with a tax component to adjust tax liabilities. If a supplier issues a credit note without GST, it may impact the purchaser's input tax credit. The professional sought further clarification on their liability and whether they must reflect such credit notes in their tax returns. (AI Summary)
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