We are issuing a credit note in respect of “Rebate and Discount”. We do not want to reverse GST charged. How can we do so ?

GST cannot be refunded if there is no agreement at the time of issuing Invoice. If you want to allow discount without adjusting GST, then follow the steps given below: –

METHOD-1: –

1. Go to Voucher.
2. Click on “Add” and enter “CN” as Trn.Type.
3. Enter date / party and amount.
4. Select the account head, which you want to credit e.g. “Rebate and Discount”. No GST Class should be attached with this account.
5. Enter the amount in debit column and Save the entry.

Note: Doc. Number shall not appear in GSTR-1 in case of METHOD-1.

METHOD-2: –

1. Go to GST Docs -> Credit Note.
2. Click on “F9: New” to create new credit note.
3. Enter date / party information etc.
4. Create an Item e.g. “Rebate and Discount”.
5. Specify “Not Applicable” under the column GST Rate.
6. Specify A/c Head where the amount is to be posted. No GST Class should be attached with this account.
7. Create Credit Note and select “Rebate and Discount” as item.
8. Amount will be debited to the A/c Head specified in Item Master and Credited to the Party.

Note: Doc. Number shall be included in Doc. Numbers (part-13) of GSTR-1, in case of METHOD-2.

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