/** * The main template file * * This is the most generic template file in a WordPress theme * and one of the two required files for a theme (the other being style.css). * It is used to display a page when nothing more specific matches a query. * E.g., it puts together the home page when no home.php file exists. * * @link https://developer.wordpress.org/themes/basics/template-hierarchy/ * * @package WordPress * @subpackage Tally * @since 1.0.0 */ ?>
Debit Notes and Credit Notes are unavoidable parts of business due to the system of returns. How to account for them in GST is thus crucial for businesses.
A debit note in GST is a document issued by the supplier in the following cases:
A credit note in GST is a document issued by the supplier in the following cases:
As per the prescribed debit note format and credit note format, the following are the details which need to be captured:
Details of debit and credit note in GST, need to be furnished in the normal tax cycle.
Details of debit notes issued should be furnished in Form GSTR-1 for the month in which the debit note is issued. These details will be made available to the recipient in Form GSTR-2A, post which the recipient has to accept the details and submit in Form GSTR-2.
Please note that a debit note can be raised by a recipient also when the goods received are returned, damaged in transit, the taxable value shown in the invoice is more than the actual or tax charged is more than the actual. However, under GST, debit note furnished by a supplier only will be considered for revision in the values of an invoice. The same has to be accepted by the recipient for the corresponding impact on input tax credit on the supply.
The details of credit notes issued in a month should be furnished by suppliers in Form GSTR-1. The recipient of the supply will receive these details in Form GSTR-2A, post which the recipient has to accept the details and submit in Form GSTR-2. A point to note here is, that a supplier will be allowed to reduce his tax liability via a credit note only if the recipient of the supply accepts the credit note details in Form GSTR-2. Once this is done, the recipient’s input tax credit will be reversed to the extent of the credit note and the supplier’s tax liability will also be correspondingly reduced.
Please note that a credit note can also be issued by the recipient of a supply, in cases such as when the taxable value shown in an invoice for an inward supply is less than the actual, or, tax charged for an inward supply is less than the actual. However, in these cases, revision in the values of an invoice will only be considered when a supplier issues a corresponding debit note for the supply. The details of a debit note issued have to be furnished by the supplier and the same has to be accepted by the recipient. Subsequently, the tax liability of the supplier and input tax credit of the recipient will be modified accordingly.
TallyPrime’s ‘Go To’ – A Powerful Capability to Discover Easily and Do More