CREDIT NOTE
The definition of 'credit note' is described under sub-section (37) of section 2 of the Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017) (CGST Act):
❝(37) “credit note” means a document issued by a registered person under sub-section (1) of section 34;❞
“Where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient one or more credit notes for supplies made in a financial year containing such particulars as may be prescribed.”
DEBIT NOTE
The definition of 'debit note' is described under sub-section (38) of section 2 of the Central Goods and Services Tax Act, 2017 (Act No. 12 of 2017) (CGST Act):
❝(38) “debit note” means a document issued by a registered person under sub-section (3) of section 34;❞
Sub-section (3) of section 34 of the CGST Act, reads as under:-
“Where one or more tax invoices have been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient one or more debit notes for supplies made in a financial year containing such particulars as may be prescribed.”
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Notes:
> The Central Goods and Services Tax Act, 2017 is an Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government.
> The aforementioned definitions of credit note and debit note may undergo further changes with the new amendments.
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