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

Debit Note Issuance: buyer may record supplier shortfall but supplier must issue corresponding credit note to adjust GST.
Under GST a tax invoice is essential to claim Input Tax Credit. Where invoiced supplies are later found to have incorrect value/tax or goods are returned, adjustments must be effected by issuance of Credit Note or Debit Note relating to the original supply. The supplier is required to issue such notes and declare them in the prescribed return so that tax liabilities and recipient entitlements are adjusted in accordance with the Invoice Rules.