A debit note has different uses in GST and in accounts. Its use in GST is of great significance to those involved in business transactions. Hence, to give a better understanding, below is an overview of debit note in GST and how it is different from those in accounts.
Accounting permits both the supplier and the recipient to raise a debit note. On the contrary, the CGST Act Section 34, 2017 only permits the supplier to issue the debit note to the recipient. Under GST, a recipient is not permitted to raise a debit note.
A tax invoice is mandatorily to be issued by the dealer supplying goods and/or services. Upon issuing a tax invoice, a debit note may be issued in the following situations:
According to the CGST Act Section 34, 2017, a supplementary invoice should be included for the expression “debit note”.
As per the CGST Rules Rule 53(1A), the contents on a debit note include:
Before the GST Amendment Act 2018, a debit note had to be issued for each invoice. However, after the amendment, a consolidated debit note can be issued against multiple invoices which are used during a specific financial year. This will not require linking the debit note to individual invoices separately.
Debit note is to be disclosed and amended in GSTR forms as follows:
This information can be amended in the subsequent period and such amendments will have to be reported in Table 9C.
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