TaxTMI 
TaxTMI 
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 %.
Debit note to transporter
01 Feb 2020 
2 Replies 
4783 Views Asked by
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. (AI Summary)
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. (AI Summary)