ISSUE OF CREDIT UNDER GST WITH IRN

[SURYAKANT MITHBAVKAR]

We have issued debit to our Customer on 17th Feb,2022 for freight charges of Rs. 8,745/- +GST and same has been uploaded on GSTN server in Feb-22 GSTR-1.

Now Customer has noticed that we have charged excess freight amount of Rs.998/-+ GST and they have issued us Debit Note for the same amount (Copy Enclosed). Further they have requested us to issue a credit Note against the same.

Also note that we have started E-invoicing w.e.f. 01/04/22.

Whether we have to issue credit note to them for the same amount. if yes whether we have to generate IRN for the same credit note.

[Rajat Gupta]

Issue a credit note of the excess amount along with applicable GST. Also generate an IRN for the same.

[Shilpi Jain]

Yes. Since the credit note is issued after 1st apr IRN would be required to be generated...

[Ganeshan Kalyani]

E-invoice is required to be generated for credit note and debit note. Credit note can be issued with GST as asked by your customer.

AI Summary

E invoicing requirement: generate an IRN when issuing a credit note for excess charges after mandate commencement. Supplier must issue a credit note for the excess freight plus applicable GST, and because the credit note is issued after the commencement of mandatory e invoicing, an Invoice Reference Number (IRN) must be generated for that credit note; e invoicing/IRN generation also applies to debit notes and credit notes issued post mandate.