Debit/credit note

[Rupali Malik]

If a seller A supplies goods to Buyer B

And now the goods are to be returned.

Are both parties liable to issue credit/Debit note respectively ??

[Ganeshan Kalyani]

In GST credit note / debit note are to be raised by the supplier of the goods. However, buyer can raise debit note.

[YAGAY and SUN]

Goods can be returned by the buyer on an invoice if full quantity is being returned other wise the route can be taken for settlement as stated by Mr. Kalyani

[Ganeshan Kalyani]

Yes Sir.

AI Summary

Credit and debit note rules: supplier must issue adjustment notes; buyers may issue debit notes in limited cases.
Credit notes and debit notes are principally instruments the supplier must raise to document post-supply adjustments under GST; the supplier is the primary party required to issue such notes to alter taxable value. A buyer may, in practice, raise a debit note in limited circumstances. If the buyer returns the full invoiced quantity the return may be processed on the original invoice; for partial returns or more complex situations parties may adopt settlement or reconciliation routes.