ISSUING OF DEBIT NOTES - CLARRIFICATION

[SAFETAB LIFESCIENCE]

Dear Experts,

In some cases, we have to debit some amounts to our suppliers account towards rejection/shortage/damage of the materials received.

Sometimes, we are returning the damaged items to original suppliers also. Sometimes, the rejection quantity may be destroyed at our end also as per suppliers request.

Whether we can issue DEBIT NOTE to our suppliers for this rejection/return/shortage/damage materials cost + GST.

Before GST regime we were issuing Debit Note easily. Now, we were informed by some GST officials that we should not issue Debit for suppliers materials and we can issue debit note or credit note only for our finished goods supply to our customers only.

Is it correct ???

Or shall we issue Debit Note to our suppliers ???

AI Summary

Company Can Issue Debit Notes for Rejected Goods, But Suppliers Must Issue Credit Notes Under GST Rules A company inquired about issuing debit notes to suppliers for rejected, returned, or damaged goods under the Goods and Services Tax (GST) regime. Previously, debit notes were issued without issue, but GST officials advised against issuing them for supplier materials, suggesting they are only for customer transactions. Experts clarified that under GST, the supplier should issue credit notes, while the recipient can issue debit notes for their records. The discussion highlighted the importance of following GST provisions for compliance, with experts agreeing that the company can issue debit notes, but suppliers must issue corresponding credit notes.