debit note etc gst

[Madhavan iyengar]

A Company has sold some material in July 17 and August 17 and disclosed in returns and paid the tax

Now in May 19 due to some rate increase given effect to between both buyer and seller for period july 17 and august 17 debit note will be raised by supplier in may 19 with gst. and disclose in returns and pay the tax.

query

a) is interest to be paid on the tax portion by supplier on this debit note since this fact has been decided in may 19 can it be contested that date when it is effective for liability is may 19 though for past period given effect now.

b) will interest on tax payable if recovered from supplier be liable for gst and can recipient avail the ITC

b) can debit note be raised in may 19 for july/aug 17 supplies and can recipient avail the itc in may 19

AI Summary

Clarification on debit notes: No time limit for issuance, but ITC claim deadline under Section 16(4) applies. Interest from invoice date. A company issued a debit note in May 2019 for goods sold in July and August 2017 due to a price increase agreed upon later. The forum discussed whether interest on tax should be paid for the period before the debit note was issued and if the recipient can claim Input Tax Credit (ITC). It was clarified that there is no time limit for issuing a debit note, but ITC cannot be claimed after the deadline set by Section 16(4) of the CGST Act. Interest is not required for the past period since the liability arises from the debit note issuance date. The discussion referenced legal interpretations and court rulings, highlighting that interest applies from the original invoice date until the tax payment on the debit note.