Question ID : 40800

GST

A person raised 3 invoices to service receiver in F Y 2017 2018 but due to some mistake not uploaded right credit against each invoice. Now the receiver raised a debit note along with tax & Interest. Due to the fact that he is an Important customer, supplier can not bought him to his knees. Now the question is: 1. can the supplier get the GST refund which he has paid to the department against these invoices since the receiver has raised a debit note, reversed the credit and not paid for the Invoices? Thanks & Regards

The receiver cannot issue debit note or credit note in ST. Only supplier can issue credit note for the reasons specified in sec 34. Only where the credit is issued by supplier in compliance with sec 34, output liability can be reduced by the supplier if the recipient reduces the ITC. In the given case, since the correct credit note has not been issued, liability cannot be reduced.