Term debit notes under GST

Meaning of term debit note under GST


Debit Notes Under GST

The details about debit notes under GST are explained here.

GST takes care of all the changes made in a transaction. It is obvious to have a free flow of credits to the last mile in a GST environment. Hence, dealers and assessees have to follow a tough regime of uploading and updating every single transaction that they enter into.

Since debit notes are a major change to an invoice, they have to be reported separately in the GST returns. Debit notes are explained under section 2(36) of the Model GST Law.

Debit notes can be raised in GST under two situations:

  • When the amount of taxable value of the goods changes after issuance of invoice
  • When a number of tax changes after issuance of invoice

The following things are to be maintained in the debit note, for proper update and reporting. Although there is no predefined format for the same, necessary care has to be taken to mention these important details in the debit notes.

  • Name and address of the dealer supplying the goods or services
  • GST Identification Number (GSTIN) of the supplier
  • Nature of the document – DEBIT NOTE in bold, capital letters.
  • Unique serial number assigned to the document
  • Date of the document
  • Name and address of the recipient of goods or services
  • GST Identification Number (GSTIN) of the recipient
  • When the recipient is an unregistered person, then name and address of place of delivery.
  • The corresponding original tax invoice to which the debit note relates to
  • Changes in taxable value of the goods or services, or changes in tax amount, as the case may be, for which such debit note is being raised.
  • Digital signature for online debit notes or physical signatures for paper-based documents.

The details of debit notes have to be declared in the month following the month on which such debit note has been raised. Debit notes can be issued anytime without any time limit.

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