This article will give a brief regarding what is credit note, Debit note and review invoice, with its reference to GST
What we will cover below:
- The meaning of credit and debit note?
- Credit Note according to GST
- Debit Note according to GST
- What we are going to talk about credit and debit note
- Revised Invoice according to GST
- Supplementary invoices
So what do we mean by Credit and Debit note ?
When there is excess goods or there is goods or services returned back because of some inconveniences or the goods supplied are below the required standard ,then in this kind of situations the credit or debit note are given out .
There are two circumstances that a Credit and Debit note can be given –
- If the buyer’s money that is supposed to give the seller reduces –Changes of the price can happen after the seller has already given out the goods and invoice . This can been due to bad goods or poor quality and the goods returned .In this kind of situation a debit note can be given to the seller by the buyer due to the poor quality goods. The debit note gives out information about the amount of money that is debited from the seller and the reasons as to why the buyer debited .This is done so that in the buyer’s book of account it can record a Credit balance . Debit note reduces the seller’s credit account thus making the credit balance reduce that is for the seller .This means that the buyer needs to pay a little amount of the goods supplied that before in order to settle the liability. The buyers liability is reduced due to the debit note.The credit note is send by the seller as a response to the buyer’s debit note .
- If the buyer’s money that is supposed to give the seller increases-The debit note is given if the goods delivered are more than required or if the record was done incorrectly or goods delivered was charged incorrectly.So in this case the debit note is given by the seller to the buyer . Then the buyer responds with the credit note .This is why – A debit balance will be shown to the seller’s books of account. A debit balance increases to the buyers books of account due to the issued debit note .In order for the buyer to settle his liability he or she needs to pay more. So the buyer’s credit balance is increased Debit Note under GST
Cases when Debit note is to be issued by supplier:
Cases Where Debit note has to be issued by the Supplier
- Original tax invoice has been issued and taxable value in the invoice is less than actual taxable value.
Original tax invoice has been issued and tax charged in the invoice is less than actual tax to be paid.
Note Debit note will include a supplementary
|Cases Where Debit note has to be issued by the Supplier|
|A.Original tax invoice has been issued and taxable value in the invoice is less than actual taxable value.
|B. Original tax invoice has been issued and tax charged in the invoice is less than actual tax to be paid|
|Original tax invoice has been issued and tax charged in the invoice is less than actual tax to be paid|
|Debit note will include a supplementary invoice.|
What we are going to look at in Credit and Debit note
the following should be included in Credit and Debit note:
- The suppliers name and address and GSTIN,
- The documents type,
- A serial number that is unique for financial year that include numeric and alphabets digits,
- the documents date of issue,
- The recipient details like name ,adress and GSTIN and unique Identification number if registered,
- The recipient details like name ,adress and GSTIN and unique Identification number if registered and state name and its code, if such recipient is unregistered,
- a bill of quantity of any tax transactions details ,
- Amount of the tax credited or taxable goods or services or, as the case may be, debited to the recipient, and the supplier signature or his or her representatives.the credit and Debit note can be issued anytime there is no specific Times. Also,Credit and debit note given should be under filed one month after the documents are given the following date is when details are to be declared:
- after goods was supplied ,September following end of the year,
- Relevant yearly returns of date of filling
- Note: changes will be made No tax liability reduction of the supplier will be allowed when the tax details and interest have be given to another next person.
- Credit and Debit note details on how to make them
The meaning of Revised Invoice under GST
The GST states state that, registration will be applied by the taxable dealers and Do all the necessary process in order to get the registered certificate.
For all the invoices issued between the period –
- The GST date of changes
- Registration certificate date of being given
Give out a reviewed invoice between the said period. The reviewed invoice will be given within one month from issued date of the certificate.
Meaning of supplementary invoices and their uses
This is a type of invoice that is given by a person taxed in case where any faults is found in a tax invoice given by a person taxed and its can be in the form of Credit and Debit note.
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