ALL ABOUT CREDIT / DEBIT NOTES
Credit and Debit notes covered under section 34 of the CGST act
What is credit Note?
A credit Note is a document evidencing reduction in value of particular supply made earlier.
Every credit note has to be linked to an invoice issued earlier.
A credit Note enable a supplier to reduce his output tax liability in relation to the invoice issued earlier.
What is debit Note?
A Debit note is document evidencing enhancement in value of a particular supply made earlier. Every Debit note has to be linked to an invoice issued earlier.
A Debit note enables a recipient to take further ITC in relation to the invoice issued earlier.
What are the Contents of a revised tax invoice and credit or debit note
- The word ” Revised invoice ” wherever applicable,indicated prominently
- Name , address and GSTIN of the supplier
3.Nature of document
- A consecutive serial no
- Date of issue of document
- Name , address and GSTIN, if registered, of the recipient
- Name and address of the recipient and the address of delivery, along with the name of state and its code if such recipient is un-registered
- Serial no and Date of the corresponding tax invoice or as the case may be , bill of supply
- Value of taxable supply of goods or services,rate of tax and the amount of the tax credited or as the case may be , debit to the recipient