Delinking of Debit/Credit notes with Tax Invoices

In pursuance of Section 34 of CGST Act, 2017, the issuance and reporting of Debit/Credit Notes by the supplier in Form GSTR – 1 along with corresponding tax invoice number and date, i.e., one debit/credit note to be issued against one tax invoice.

In order to reduce this hectic compliance burden, the CGST (Amendment) Act, 2018 has amended the supra section w.e.f. February 01, 2019, a supplier may issue a single debit/credit note against multiple tax invoices or vice- versa.

Despite the above amendment, the common GST portal still did not allow the facility of mentioning multiple tax invoices against single debit/credit note. Thus, we can say that the GST Portal doesn’t synchronise well with the CGST Act, 2017.

On September 15, 2020, the common portal removed such linking and the same has updated the portal as while reporting the debit/credit note, details of tax invoice number are not required to mention.

MAG Comments

This facility seeks to reduce the tedious compliance burden of the suppliers by issuing only one debit/credit note against multiple transactions and easing the processes as earlier, the original invoice no. was mandatory to be quoted while reporting a Debit/Credit Note in Form GSTR-1 or Form GSTR-6.

In conclusion, the recent update to the common GST portal eliminates the requirement to mention the tax invoice number while reporting a debit/credit note, in accordance with the amendment made to Section 34 of the CGST Act, 2017. This simplifies the compliance process and reduces the burden on suppliers.

Simplify your compliance burden. Take advantage of the updated GST portal and issue single debit/credit notes for multiple transactions. To know more, Contact us today at info@manishanilgupta.com

Disclaimer:The information given above is to provide general guidance to the readers. This information should not be sought as a substitute for legal opinion