SUPPLIER OR CREDITORS ISSUED CREDIT NOTE SHOWING IN GSTR2 CAN WE WE TAKE OUR GSTR1

[nandankumar roy]

DEAR SIR,

SUPPLIER OR CREDITORS ISSUED CREDIT NOTE SHOWING IN GSTR2 CAN WE WE TAKE OUR GSTR1 BY TREAT AS DEBIT NOTE PL CONFIRM OR WHETHER CREDITORS ITC ONLT TO BE SHOWN IN ONLY IN 3B RETURN TILL WAIT SUBMISSION OF GSTR2 IN FUTURE.

WITH REGARDS,

N K ROY

[Alkesh Jani]

Sir,

Section 34 of the CGST Act, 2017 provides for issuance of credit notes for post supply discounts or if goods are returned back within a stipulated time. However, in GST the two main documents on which ITC can be taken are Invoice and Debit note.

In which scenario Credit note is issued is not mentioned in your query. If you can elaborate your query, it will be easy for our experts to express their views.

Thanks

[YAGAY andSUN]

In our view if credit note is issued and mentioned by your counterpart in their return then for matching purpose you need to show in your statutory returns and if there is any mismatch then you would have to resolve it within prescribed time limit.

[Ganeshan Kalyani]

Elaborate your query a bit more.

AI Summary

Credit note issuance affects input tax credit matching; recipients must reflect adjustments in returns to avoid mismatches. Credit notes adjust post-supply considerations like discounts or returns, but ITC is ordinarily claimed on invoices and debit notes; recipients should not treat supplier credit notes as substitutes for debit notes to create ITC. If suppliers report credit notes in their returns, recipients must reflect corresponding adjustments in their statutory returns to enable electronic matching and resolve any mismatches within prescribed timelines for proper ITC reconciliation.