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All about Debit Note in GST

Updated: Mar 21, 2021

In the GST regime, the supplier of Goods or Services is required to issue tax invoices mandatorily in every case.

However, after the issue of invoice, there can be a situation such as

(I) that the value of taxable supply has been less charged i.e. the taxable value has been erroneously charged less in the original invoice.

(ii) that the quantity of goods has been less declared in the invoice that the actual receipt of goods by the receiver

(iii) that the rate of GST has been erroneously charged less than the actual rate of tax

(iv) or any other reason by which the invoice value is less than what should have been the actual invoice value :

To correct all the above errors, a debit note is required to be raised by the supplier in favour of the recipient to correct the errors. The debit note is similar to a supplementary invoice.

Format of Debit Note and details required :

There is no prescribed format of Debit Note under GST. However, the debit note should contain the following details :

1. Name, address and GSTIN of the Supplier,

2. Document should indicate that it is a debit note

3. Serial No. of the documents which can be any i.e. numerical or alphanumerical but should not exceed 16 characters and it should be unique for a particular financial year.

4. Date

5. Name, Address and GSTIN of the Recipient (GSTIN is mandatory if the recipient is registered)

6. Serial No. and date of the original Invoice in respect of which the debit note is issued.

7. Value of Taxable suppliers, rate of tax and the amount of tax

8. Signature of the supplier

The debit note creates an additional tax liability for the supplier and the same has to be declared in the respective GSTR-1 & GSTR-3B for the relevant month.

The debit note record should be kept and maintained till the end of 72 months from the due date of filing of Annual Return for the year in which the debit note is issued. The debit note record is to be kept at every registered address of the supplier.

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