Find
A supplier's credit note reduces the ITC available to you, and it appears in GSTR-2B as a negative entry. If you ignore it and claim the original credit, your GSTR-3B claim exceeds GSTR-2B.
GST
Credit notes from suppliers reduce GSTR-2B ITC
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Provisions
Sec 34, CGST Act 2017; Sec 16(2)(aa), CGST Act 2017; Rule 88D, CGST Rules 2017
Analysis
If a supplier issued a credit note with tax of ₹18,000 for a price discount, your net credit falls by ₹18,000. Recent IMS changes require action on credit notes as well, so check what you accepted. Pay back the reduced credit or explain if the credit note is disputed and you rejected it.
Close
- Find credit notes in GSTR-2B and IMS for the period
- Check whether you reduced your claim
- Pay back or explain in Part B
- Agree credit notes with suppliers each month
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