Credit Note And Debit Note On GST Portal

Credit Note And Debit Note On GST Portal

 

Credit Note And Debit Note On GST Portal

Credit Note And Debit Note On GST Portal: On 17 September 2020, the GST portal enabled the delinking of Credit Notes/Debit Notes (CDNs) from their unique invoices. That way taxpayers can now report consolidated CDN in GSTR-1/GSTR-6. Or whilst submitting refund programs without putting forward the unique bill range and its date.

The following subjects had been mentioned in this newsletter the way to cancel credit score observation in the GST portal. Credit score observation vs debit observation. How to test a debit observation in the GST portal, the way to cancel a credit score observation in GSTR 1. How to test a credit score observe in the GST portal. The way to add a credit score observe in the GST portal, the way to delete a credit observation in the GST portal.

Features Of The New Facility:

On the GST portal, taxpayers can now:

Report an unmarried credit score be aware or debit aware for a couple of invoices in desk nine of shape GSTR-1 or GSTR-6. That means, If a taxpayer has issued 10 invoices in September and October 2020 to a seller and desires to trouble a credit score be aware in December 2020, because of charge fluctuations, he/she will be able to trouble a consolidate, unmarried credit score be aware for all of the 10 invoices issued earlier.

Select the delivery kind:

 

  • Regular,
  • SEZ,
  • DE, Export, etc., to routinely pick out the desk to which such credit score be aware or debit be aware relates.
    Indicate the Place of Supply (POS) in opposition to every credit score be aware or debit be aware, to pick out the delivery kind, i.e. Intrastate or Interstate.
  • Declare most effective the tax quantity (without taxable cost) withinside the credit score be aware or debit aware. That means if a credit score is aware or debit is aware is issued for the variations. Withinside the tax rate, then the be aware cost may be mentioned as ‘Zero’. Only the tax quantity may be entered in such cases.
  • Make amendments to the credit score be aware and debit notes primarily based totally on the factors cited above.
  • Apply for refunds via way of means of reporting such credit score notes or debit notes in statements (filed with the refund software) without citing the corresponding bill number.
The taxpayers could be required to choose the file kind from a drop-down comprising of:
  • Invoice
  • Debit be aware
  • Credit be aware.
  • A refund software may be filed for:
  • Refund for export of offerings with a fee of tax
  • The Refunds resulting from goods & offerings without fee of tax
  • Refund resulting from delivery of products or offerings to SEZ with a fee of tax
  • The Refund resulting from delivery of products or offerings to SEZ without fee of tax
  • Refund resulting from inverted obligation structure

 

Benefits:

In the past, taxpayers needed to trouble separate credit score or debit notes for each applicable tax bill raised in an economic yr beneath neath GST. However, now, one credit score/debit be aware shall suffice.
This facility will lessen the disclosure burden on the taxpayer and thus, simplify GST compliance. It can even mitigate the sensible problems of issuing a debit be aware and credit score be aware in GST in opposition to more than one invoice as tagging of unmarried CDN to more than one invoices changed into now no longer possible.

 

Points To Remember:

 

Section 16(4) of the CGST act changed into amended to permit delinking of tax credit scores to be had at the debit notes from the difficulty date of its unique bill. That approach tax credit score on notes may be claimed withinside the economic yr the be aware is issued. Before this amendment, the cut-off date for taxpayers was to say the Input Tax Credit (ITC) on invoices. And debit notes of an economic yr changed to the sooner of:

 

  • Due date to report returns for September of the subsequent yr or
  • The actual date of submitting the yearly returns for that economic yr

Example: DEF ltd. acquired a debit be aware on 15 July 2020 for a bill dated 12 March 2020. As in step with the amendment, because the debit is aware can be delinked from the unique bill date. The ITC on such be aware may be claimed in FY 2020-21. That approach, DEF ltd. has time until the due date of submitting GSTR-3B of September 2021 to say the ITC in this debit be aware.

Entering info on previous files of a debit or credit score be aware withinside the e-Invoice schema is optional.