Understanding the requirement of issuance of a debit note or credit note, in simple terms, means when the goods being supplied are returned back or when there is any revision in the invoice value, the debit note or credit note is being issued by the supplier and the receiver of the goods / services.

The provisions relating to the debit note or credit note under GST is being contained under section 34 of the CGST Act, 2017. The said provisions have undertaken amendment, vide notification no. 02/2019 – Central Tax dated 29th January, 2019 through which the Central Goods and Service Tax (Amendment) Act, 2018 has been made effective from 1st February, 2019.

The existing article helps to figure out the earlier provisions and the amendment in the same with regard to the debit note and credit note under GST.

TABLE NARRATING EARLIER PROVISIONS AND AMENDED PROVISIONS –

The following table narrates the earlier provisions and amended provisions with regard to the debit note and credit note. Please note that only the relevant provisions are being reproduced –

PARTICULARS EARLIER PROVISIONS AMENDED PROVISIONS
Section 34 (1) of the CGST Act, 2017 relates to the ‘credit note’ ‘Where a tax invoice has been issued ………………. a credit note containing such particulars as may be prescribed. ‘Where one or more tax invoices have been issued …………. one or more credit notes for the supplies made in a financial year containing such particulars as may be prescribed.
Section 34 (3) of the CGST Act, 2017 relates to the ‘debit note’ ‘Where a tax invoice has been issued ………………. a debit note containing such particulars as may be prescribed. ‘Where one or more tax invoices have been issued …………. one or more debit notes for the supplies made in a financial year containing such particulars as may be prescribed.

The above amendment is in favour of the registered person since after amendment i.e. from 1st February, 2019, the taxpayer can now issue a consolidated credit note or debit note against multiple tax invoices. The earlier provisions of issuance of a debit note or credit note against single invoice and linking the same have been removed.

AMENDMENT IN THE CGST RULES, 2017

Vide notification no. 03/2019- Central Tax dated 29th January, 2019, the Central Goods and Service Tax (Amendment) Rules, 2019 has been introduced and made effective from 1st February, 2019.

Vide the said amendment rules, new sub-rule (1A) has been inserted into rule 53 of the CGST Rules, 2017 which deals with the particulars which need to be provided in the credit note or debit note. As per the said newly inserted sub-rule (1A) following are the particulars which are to be contained in the credit note or debit note –

  • Name, address and GSTIN of the supplier;
  • Nature of the document;
  • A consecutive serial number;
  • Date of issue of the document;
  • Name, address and GSTIN / UIN, in case the recipient is registered;
  • Name and address of recipient and the address of the delivery, along with the name of the state and its code, in case the recipient is unregistered;
  • The serial number and the date of the corresponding tax invoice (tax invoices) or bill of supply;
  • Value of the taxable supply of goods / services, the rate of the tax and amount of the tax credited or debited to the recipient; and
  • The signature / digital signature of the supplier / authorized representative.

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11 Comments

  1. Mahesh Kumar Upadhyay says:

    Sir, I have raised a Inv dt. 18.02.2018 name of National Insurance Co. Ltd for Rs 866105/- and insurance co has sanction and credit to us for Rs 429500/- with tds and balance amount Rs 428015/- receivable from client and client want a document for input so we are issuing a new invioce new series or supplement invoice by ref last series and same time or date issue a credit note to insurance co. please tell us process for accounting and input regarding client.

  2. A S S SRINIVAS says:

    Dear Sir,
    I have issued of Rs.2100000/- (including GST) one invoice this invoice agst. credit note issued with out gst Rs. 100000/- . so i have clarify that gst amount credit note chargeable or not

  3. N C RUKMINI says:

    Sir,
    Is the GST system updated to upload consolidated Debit or Credit Notes?? And where should we mention the Original Invoice nos.?

  4. G Sai Kumar says:

    Dear Sir,
    Once we file the Credit note by reducing the invoice value. What is the procedure for claiming the refund (or) taking credit of extra tax paid earlier against the invoice.

  5. A K SHARMA says:

    SIR,
    IF WE ISSUED TAX INVOICE UNDER CGST AND SGST TAX AND GOODS HAS BEEN RETURN, SO CREDIT NOTE SHOULD IN THE FORM OF CGST AND SGST(INTRA STATE SUPPLY). BUT AMENDMENT ON GST SITE IS SHOWING ONLY IGST(INTERSTATE SUPPLY) RETURNABLE GOODS IN B2CSL. PLEASE CLARIFY. I SHALL BE THANKFULL TO YOU SIR.

    REGARDS
    AVDHESH SHARMA

    1. s ramakrishnan says:

      Dear Sir,
      Read your article. But i came to understand that the this amendment doesnt relate to consolidate of invoices for issue of debit note or credit note. what is your view sir

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