Consolidated Credit Note

[Ramanathan PK]

Sir

We are suppliers of automobile components to various clients.

We supply them based on orders received on a regular basis. The price is ascertained mutually between the supplier and the client based on the input viz. steel. We continue supply based on the agreed price and over a period of time due to the fluctuations of the price of steel and other commercial reasons, the cost of the components would change either high or low and once in six months, the final prices would be agreed to.

While issuing a debit note for the differential price due to upward revision, it becomes necessary to issue a debit notes for the entire invoices issued during the period and in case of downward revision, it becomes necessary to issue credit notes for each and every invoice during the period which is a cumbersome process. The supplier issues a consolidated debit/credit notes which does not figure in the GSTR-2A consequently the ITC credit would be denied.

Considering the volume of invoice for a period of 3 months, there would be approx. 2000-3000 invoices for which debit notes/credit notes would have to be issued.

I would be grateful if some of the experts can comment on the above and if there is provision in the Act and Rules for acceptance a consolidated credit or debit notes.

Thank you

AI Summary

Fluctuating Steel Prices Impact Auto Component Supplier's Debit/Credit Notes; ITC at Risk Due to GSTR-2A Issues. A supplier of automobile components is facing challenges with issuing debit and credit notes due to fluctuating steel prices affecting component costs. The supplier issues consolidated notes for numerous invoices, which do not appear in the GSTR-2A, risking denial of Input Tax Credit (ITC). Experts suggest that while a provision for consolidated notes exists, the portal is not updated. Until then, a single note referencing one invoice can be used for GSTR-1 filing, but all invoices should be recorded. Affected parties are advised to check portal updates or contact authorities for functionality activation.