Vendors Credit Note My Debit Note Customer Vendor
Vendors Credit Note My Debit Note
Customer – Vendor ? • • Case 1 I am “Akito Kowa Packaging Ltd” I have Finsys ERP. I make Flexible Packaging in NCR Delhi My vendor is Uflex ( supplier of Flexible raw film) Case 2 I am a Washing Machine parts maker My Vendor sells Plastic Granule ( Raw Material)
What is a Credit Note ? Sec 2(37) CGST Act
Section 34(1) Credit Note. . PTO
Conditions in Section 34 • 34. (1) Where a tax invoice has been issued for supply of any goods or services or both and • the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or • where the goods supplied are returned by the recipient, or • where goods or services or both supplied are found to be deficient, • the registered person, who has supplied such goods or services or both, • may issue to the recipient a credit note • containing such particulars as may be prescribed.
Example # 1 : Rate excess problem • the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or ( excess charged was Rs 2 per kg on Film/Granules) – He charged Rs 110, 000 – Actual should have been Rs 1, 05, 000 – So, CN for Rs. 5, 000
Example # 2 • where the goods supplied are returned by the recipient, or – Akito Kowa has returned Rs 3000 of Raw Material due to defect/QC problem or anything • He charged Rs 20, 000 on the bill • I have to accept that bill in GSTR 2 – Later , I reject and send back the goods worth Rs 3000 • I cannot edit his bill • I cannot send him a debit note ( ? ? ) • So, request him for a CN for Rs 3, 000
Example # 3 • Goods in Transit loss / Short Supply by vendor • “…. where goods …. supplied are found to be deficient…”, • Uflex sent 15, 000 kg as per its bill. – But I received only 14, 600 kg. – So, Deficient by 400 kg. – He charged Rs 1, 50, 000 on the bill. – I have to accept that bill in GSTR 2. • But, I need to cover my loss. – I cannot send him a debit note ( ? ? ) – So, request him for a CN for 10 x 400 = Rs 4, 000.
Example # 4 : Service Provider • ISO 9001 Consultant. – Bill raised 2 lakhs. Filed on GSTR 1 – We pass the bill for Rs 175000. • “…. where …. services…. supplied are found to be deficient…”, • He charged Rs 2 lakhs on the bill. In GSTR-1 – I have to accept that bill in GSTR 2 A/ 2. • But, I need to cover my loss. – I cannot send him a debit note ( ? ? ) – So, request him for a CN for 25, 000
Who will make ? • the registered person, who has supplied such goods or services or both, • may issue to the recipient a credit note • containing such particulars as may be prescribed.
How to do in Finsys ?
Case 1 : Rate Difference 2/kg • Regd person ( Uflex ) will have to make the Credit Note • We will in Finsys post this in the 31 series debit note • This debit note is same as in Pre-GST period • It will hit your accounts but not hit – the GST portal – GST-3 B – GST-2
Why this is done ? • If we make the “ 58” series Debit Note • It will also load into the GSTN portal • And there will be a double Debit in GSTN Portal – He will give a credit note, and I approve it – If by mistake, I give a 58 series DN, then Modvat ITC will be adjusted twice • Hence, make We will in Finsys post this in the 31 series debit note
Let us see the GSTR-2 and 1
GSTR-1
DN in case of unregistered
Para 9 : His debit notes to his own invoices of prior period
And he will give numbering here
Govt Notes to GSTR-1
Can I not make a Debit Note ?
GSTR-2
Para 6 : of GSTR-2
Slots are available, for DN/CN but as per Sec 34, only supplier can issue a DN/CN
Now in Finsys
Consumables 50 series Purchase of goods /Consumables
Its Debit Note will be 31 series (via Ordinary Quick Voucher button)
Enter the Voucher, link that invoice
Select first invoice
This was the purchase voucher
This is the Debit note ( 31: non GST )
Print of DN-non GSTN
Benefit : Vendor Account Knock off
Benefit 2 : It will not go to GSTN portal • Since customer is not allowed to do that
Please Note Debit Notes. Credit Notes
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