Supplier issued credit notes: recipient debit notes create GST return and reconciliation uncertainty until supplier issues a credit note.
Section 31 requires that credit and debit notes be issued by the supplier, so recipient issued debit notes for short supply or rejection cannot be reflected in GSTR 1 or GSTR 2 until the supplier issues a corresponding credit note, creating reporting, payment and reconciliation issues and uncertainty over treating purchase returns as outward supplies. (AI Summary)