Concept of Debit Note, Credit Note and Revised Invoices in GST

As per CGST act, 2017 GST is applicable to whole of India including the state of Jammu and Kashmir. Under GST regime, supply of goods and services are chargeable to only one tax, ‘GST’ and all other indirect taxes are subsumed.

For all supplies made under GST, invoices are to be issued against each supply which is useful for calculating GST and to ascertain input tax credit. GST invoice also include revised invoice in GST, debit credit note in GST, supplementary invoice in GST.

Let us discuss now discuss about revised invoice in GST, supplementary invoice in GST and debit credit note in GST.

REVISED INVOICES UNDER GST

Invoice under GST regime means tax invoice or a bill of supply issued for every supply of goods and services. Revised invoice in GST is to be mandatorily issued against already issued invoice of supplies between the effective date of registration and the actual date of issuance of certificate of registration. All Revised invoice in GST shall be revised within one month of GST registration.

SUPPLEMENTARY INVOICES

Supplementary invoice in GST is issued by a taxable person in case of any deficiency or discrepancy found in a tax invoice already issued. It is issued if an original invoice misses any information. Supplementary invoice in GST is different from revised invoice as they are not issued in case of provisional registration period and to replace bills.

CREDIT NOTE UNDER GST

A credit note is a document issued by the supplier in case the value of taxable supply is more than the actual supply. The purpose of the credit note is to reduce the value of original supply,

Credit note is issued in following cases –

- When supplies are returned or found to be deficient by the recipient

- When the taxable value in invoice is required to be decreased by the supplier

- When the rate of GST to be charged in invoice requires to be decreased

DEBIT NOTE UNDER GST

A debit note is a document issued by the supplier when the actual value of supply is more than taxable value of supply. The purpose of debit note is to increase the value of original supply.

Debit note is issued in following cases –

- When the supplier is required to increase the taxable value of supply

- When the rate of GST to be charged has to be increased by the supplier

Details of debit credit note in GST should be furnished in form GSTR- 1 in the month of issue of debit note, such details are to be made available to the recipient in GSTR- 2A and recipient has to accept and submit the details in GSTR- 2. Supplier is allowed to reduce his tax liability through credit note only if it is accepted by the recipient in GSTR- 2 and debit note can be raised by recipient also. Moreover, it can be said that debit credit note in GST are similar to revised invoice.

Hence, now we know the concept of debit credit note in GST, revised invoice in GST and supplementary invoice in GST.

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