Hello Sir/Madam,
In January 2025, my client had returned some goods to his creditor, he raised a sale bills, e invoice and E way bill for movement of goods, but the creditor issued a Credit note for the same, and filled it in his GSTR-1, i had to reverse my ITC otherwise my ITC will get overclaimed.
so technically it became a double effect on a single bill
Now how can i issue a credit note for my bill, because there is no actual movement of goods
e invoice is applicable to me whether i have to make to e way bill for the same, as there is no movement of goods
How to Correct GST Input Tax Credit Using Debit Note Without Goods Movement Under Rule 138 A client returned goods to a creditor who issued a credit note and reported it in GSTR-1, requiring the client to reverse the input tax credit to avoid overclaiming. This created a double effect on a single bill. The client seeks guidance on issuing a credit note without actual goods movement and whether an e-invoice or e-way bill is necessary. The response clarifies that since no goods movement occurred, the client should issue a debit note for GST correction, report it in GST returns, and generate an e-invoice if applicable. An e-way bill is not required, and Rule 138 of the CGST Rules does not apply in this situation. (AI Summary)
TaxTMI 
TaxTMI 
