Rate reduction Credit Note without GST

[Vilas Choudhari]

Dear Sir/Ma'am,

I wish to withdraw your attention that one of our customer Tata Motor has reduced rate retrospectively . Accordingly we raised Credit Note with GST as regular and reduced our GST liability. I have cleared here it is not Cash Discount or Trade discount . Whereas Tata Motor passed debit note without GST and not inform us. TATA Motors not issued debit notes to us. It has created mismatch in books of Account.

Now Tata Motor is demanding GST along with @18% interest and hold our regular payment.

Can you someone give me clarity ? U/s 34 of GST Act say Credit Note.

Is it any provision in GST Act issue credit note without GST (except Cash Discount and Trade Discount.)

Please give an advice for the same.

Your response will be highly appreciate

AI Summary

Tata Motor GST Dispute: Credit vs. Debit Note Mismatch, 18% Interest Demand, and Payment Withholding Explained. A customer, referred to as Tata Motor, retrospectively reduced rates, prompting a business to issue a GST credit note. However, Tata Motor issued a debit note without GST, causing a mismatch in the accounts. Tata Motor now demands GST with 18% interest and has withheld payments. A respondent suggests that issuing credit notes under Section 34(1) is optional and can be replaced with accounting credit notes. They propose solutions like canceling the credit notes on the GST portal or requesting the customer to reverse the input tax credit. Another respondent confirms that credit notes can be issued without GST, subject to certain conditions.