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

Issuance of credit-note optional; reconcile GST mismatches by cancelling portal credit or reversing ITC and issuing accounting debit.
Issuance of a credit-note under section 34(1) is optional and parties can use accounting credit-notes to settle books without creating tax liability. Remedies include cancelling or amending the GST portal credit-note or making its tax component nil and repaying tax with interest, or requesting the customer to reverse the proportionate input tax credit and record an accounting debit-note for the differential; credit-notes without GST may be issued where post-sale adjustment conditions under section 15(3) are not satisfied.