Debit note to transporter

[Narendra Soni]

We (service recipient) are to issue debit note to our transporter due to penalty of delay reaching vehicle at destination.

Please suggest whether we have to charge GST and its %.

[KASTURI SETHI]

SAC 999793 Rate of GST @18%. (CGST 9% + SGST 9%)

[YAGAY andSUN]

Please do check that under the provision of Debit Note/Credit Note, who is authorized to issue debit note/credit note?

AI Summary

GST on debit notes for penalty recovery; confirm tax classification and entitlement to issue debit/credit notes. Query concerns issuance of a debit note by a service recipient to a transporter to recover a penalty for delayed delivery and whether such recovery attracts GST; one reply cites SAC 999793 and applies GST at eighteen percent (CGST + SGST), while another reply raises whether the debit/credit note provisions authorize the party to issue such documents.