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Decoding_GST#19, Section 31:Credit and Debit Notes

  1. Where tax invoice has been issued for supply of any goods/services and taxable value and/or tax charged in that tax invoice is found to EXCEED the taxable value and/or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where services are found to be deficient, the registered taxable person who has supplied such goods/services may issue to the recipient a CREDIT NOTE.
  2. If a credit note is used by taxable person in respect of supply of goods/services, details of such credit note shall be mentioned in the return of the that month for which such note was issued but not later than September following the end of the year in which supply was made, or the date of filing of relevant annual return, whichever is earlier, and tax liability shall be adjusted accordingly. However the tax liability shall not be reduced if the burden of tax and interest has been passed to any other person.
  3. Where tax invoice has been issued for supply of any goods/services and taxable value and/or tax charged in that tax invoice is found to LESS THAN the taxable value and/or tax payable in respect of such supply, the taxable person shall issue a DEBIT NOTE (supplementary invoice)
  4. Any person issuing debit note shall declare the information in the return for the month in which such debit note was issued and the tax liability shall be adjusted accordingly.

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