Debit Note 19 20 period - Regarding

[Ragavan Vijayakumar]

Dear Exports,

'A' Sales Goods to 'B' for the month of 'March 2020' Period of 2019-2020 Basic Value 20,000/- @ GST 18% @ 3600/-. 'A' not filed GSTR-1 and GSTR 3B for the month of March 2020. 'B' payment made to 'A' bills for the month March 2020 and regularly follow for the not reflection GSTR-2A of ITC March 2020.

'A' March 2020 GSTR-1 Retrun filed on July 2021 (21-22) period. But 'B' unable utilized the ITC amount , Because July 21 GSTR 2B shows in ITC - Ineligible for the above said amount.

now 'A' request to 'B' to issue the debit note for GST amount @ 3,600/-

Question 1: 'B' issue debit note to 'A' is correct ?

Question 2: 'A' offer to 'B' give debit note than you may collect money from 'A'' @ 3,600/-

Kindly guide me issue debit note is correct. i am 'B'

Regards

V.Ragavan

AI Summary

Supplier Responsibility for Debit Notes Under Section 34 of CGST Act; ITC Denial May Be Contested by 'B' A discussion in a forum addressed a query about issuing a debit note for a GST amount of 3,600/- between two parties, 'A' and 'B.' 'A' failed to file GSTR-1 and GSTR-3B for March 2020, affecting 'B's' ability to utilize the Input Tax Credit (ITC). 'A' later filed the return in July 2021, but the ITC was marked ineligible. Experts advised that only suppliers can issue debit or credit notes under Section 34 of the CGST Act. However, 'B' could issue a financial debit note without GST implications. It was suggested that 'B' might contest the ITC denial due to procedural lapses.