Here we provide about Debit note in GST, Debit note Format, Tax liability, Record and followed by some of the FAQs…
Tax invoice is issued for supply of the Goods and Services or for the taxable value or the tax charges in the tax invoice. If this value is found to be less than the taxable value or tax payable in respect of such supply to the registered person.
One who has supplied the goods or services, or both should have to write a Debit Note to the recipient having all details of the particular in invoice. It is mandatory to have a note for every good that are reviewed.
To ensure that they met with all values of taxation and are perfectly eligible to apply for the GST. This Debit Note in GST also helps the supplier to apply for GST and track their records in an easy manner with perfect tax returns.
Debit Note in GST
There are few cases when the Debit Note supplied under GST and issues with the goods.
- Original tax invoice which has issued and mentioned taxable value in the invoice which is more less than the actual taxable value
- Issue of original tax invoice, and tax charge on income is less than the paying of actual tax
- This will not include the supplementary invoice
Format of Debit Note
As a supplier, there are below detailed particulars that must be in your note. Make sure you have all below details in handy when preparing your note.
- Name, address along with the GSTIN number of the supplier
- Clear the Nature of document
- Serial number which must not exceed 16 digits mentioned without having a combination of the multiple characters.
- Date of issue of note
- GSTIN number along with details of unique identity number if registered
- Recipient details along with name and communication address
- Tax invoice corresponding number along with serial number or bill of supply
- Value of the supply of goods and services which are taxable
- Rate of tax and amount of tax debited in view of recipient
- Authorized representative dos mention their Signature or digital signature
Debit Note Tax Liability
The note or also known as supplementary invoice creates additional tax liability. The Note is equally treats as the tax invoice in terms of the returns and the payments are concern. This
Note does help in tax filing and has the equal value of tax filing by different things to file the returns. The supplier has mandatorily showcased the note in their document at the end of every month in tehri GST form, to ensure you are clear from the GST taxation.
Debit Note Record
In regular the note record must retain until the expiry of seventy-two months from the date of filling the annual returns. These period notes from the day of annual filing to have the accounts and record in place. The note must keep in every place of business mentioned in registration and it made available to everyone at the business points. The note needs to maintain digitally at every place of business where the documents and accounts are maintain.
Debit Note in GST is a convenient and legal method to enhance the original tax invoice of the respective goods and services. This note will allow the supplier to pay the enhanced tax liability in their returns and does not require him to get any lengthy process.
When is Debit Note issued
Every time a registered supplier supplies the Goods must get the tax invoice ready for their shipment. Along with the tax invoice it is mandatory to have a Debit Note ready for the recipient.
- When Supplier has charged value of goods or services in invoice which are less than the actual value of goods
- When supplier charge lower tax rate than the expected one on applicable goods and services
- If the goods or service received by receipt are more than the declared in original tax invoice
Why is Debit Note mandatory?
Debit Note is mandatory for the supply of goods and services which move by the supplier without having them in the tax invoice. It is require for essay enhancement of goods by suppliers and useful for the GST return at every month end.
Can a Debit Note be used without GST?
There is no chance to make the Debit Note without the GST. As when the goods are returned there must the tax to reversed.as in reversing the Tax, the GST must use the Debit Note or credit note for the calculation.
Can Income Tax credit be received on Debit Note?
The amendment has raised to unlink the Debit Note and invoice to have the purpose of claiming income tax credit. If the Debit Note has issued for the financial years of corresponding invoices. Then they can conclude for the ITC. This will not valid. If the goods returned or the payment has not processed within 3 months of valid time.
Can a Debit Note issued by Buyer?
A Debit Note can also issue to the seller from the buyer to require or indicate the funds due or damaged goods or incorrect goods or purchase cancelling or any such return process to initiate. This will a reversal of goods to the seller from the buyer without preferred in Debit Note.
Can Debit Note seen in GSTR 1?
In GSTR-1 the Debit Note or credit note has made mandatory for reporting. The Debit Note must declare in table 9B for unregistered persons. The registered person does have the value in table. Thus individuals can see the Debit Note in the GSTR-1.
Who prepares the Debit Note?
A Debit Note prepared by the seller at the prior case. To fill the details of goods which are not as per the tax invoice attached in supply. The same Debit Note can return by the buyer if they found any error in the supply.