TaxTMI 
TaxTMI 
Dear Team,
If Transporter lost or damaged the goods and agreed by transporter to provide the credit notes then transporter shooud provide the credit note with GST or can issue the commercial credit note without GST.
MK
Credit Note
30 May 2024 
12 Replies 
2789 Views Asked by
GST treatment of transporter-issued credit notes hinges on whether damages are contractual liquidated damages or taxable adjustments to transport services.
A transporter cannot issue a credit or debit note adjusting the supplier's sale of goods; only the original supplier issues credit notes for the supply. The transporter may issue a GST-bearing credit note for its own transport service (e.g., as a freight discount). Recovery from a transporter for damaged goods must be characterised-liquidated damages versus compensation-to determine whether it constitutes consideration for a supply or falls outside GST scope; contract terms and administrative guidance control the outcome. (AI Summary)
A transporter cannot issue a credit or debit note adjusting the supplier's sale of goods; only the original supplier issues credit notes for the supply. The transporter may issue a GST-bearing credit note for its own transport service (e.g., as a freight discount). Recovery from a transporter for damaged goods must be characterised-liquidated damages versus compensation-to determine whether it constitutes consideration for a supply or falls outside GST scope; contract terms and administrative guidance control the outcome. (AI Summary)