RATE DIFFERENCE CREDIT NOTE ISSUED BY OUR SUPPLIER AGAINST PURCHASE

[nandankumar roy]

DEAR SIR,

SUPPLIER OR CREDITORS ISSUED CREDIT NOTE AGAINST RATE DIFFERENCE THAT IS SHOWING IN GSTR2 CAN WE WE TAKE THIS AMOUNT IN OUR GSTR1 BY TREAT AS DEBIT NOTE OR WHETHER CREDITORS REFLECTED ITC AMOUNT ONLY TO BE REVERSE IN 3B RETURN TILL HAVE TO WAIT SUBMISSION OF GSTR2 IN FUTURE.

WITH REGARDS,

N K ROY

[Praveen Nair]

Dear Mr. Roy

GSTR1 returns are to be filed against the Supplies made by you. Hence Debit notes related to the supplies made by you will only reflect here.

Any Credit Note issued by the Creditors during the period of filing the returns should be adjusted or reversed against the credit taken in GSTR3B for the respective month.

GSTR2 though data is available online, you may very well use to check whether the credit note has been issued to avoid any future mismatch of credit.

Regards

Pravin Nair

[Ganeshan Kalyani]

As of now you can show the adjustment of credit note issued by your supplier i.e. debit note for you in the GSTR3B. GSTR 2 is not functional now hence it cannot be shown in GSTR 2A/2.

AI Summary

Credit note adjustment: supplier credit notes must be reversed in GSTR3B and not reported in GSTR1. Supplier-issued credit notes for rate differences are not reportable in GSTR1 because they do not reflect supplies made by the recipient; affected input tax credit should be reversed or adjusted in the recipient's GSTR3B for the period in which the credit note is accounted for, while GSTR2/2A data may be used for reconciliation but is not the operative filing mechanism when non-functional.