DEBIT AND CREDIT NOTE

[VIRENDRA SINGH]

Dear Sir,

Please specify that CGST AND SGST OUTPUT OR INPUT will charged in rate diffrance credit note. When I am a seller.

AI Summary

GST on Rate Difference Credit Notes: Must Issue Supplementary Invoice for Price Escalation, Tax Post-Supply Rate Changes A discussion on the Goods and Services Tax (GST) related to debit and credit notes involves several participants. A seller inquires about charging CGST and SGST on rate difference credit notes. It is clarified that if a seller recovers a differential amount due to price escalation, GST must be paid, and a supplementary invoice should be issued. A credit note reduces the supplier's output liability but does not affect input tax credit. An advance ruling cited indicates that post-supply rate differences and discounts do not comply with certain CGST Act requirements and must be taxed accordingly.