1. Courses
  2. Free GST Certification Course
  3. Chapter 5 GST Invoices
Check sibling questions

Concept of Revised Invoice,Debit Note and Credit Note

Last updated at Dec. 16, 2024 by Teachoo

When a shopkeeper makes Sales
Shopkeeper issued Customer Tax Invoice or Bill of Supply
 
Suppose Customer Returns goods

Who issues Invoice -Shopkeeper or Customer

View answer

Always Seller Issues Invoice, not buyer

In this case Shopkeeper issues Revised Invoice to Customer

This Revised Invoice is Credit note for Seller and Debit Note entry for Buyer

Lets understand it with help of example

 

Question

Why it is Credit Note for Seller

View answer

For Sales, we pass entry

Party Dr

To Sales

 

For Sales Return, we pass opposite entry

Sales Dr

To Party

(In this entry, party is credited, so it is a credit note)

 

Question

Why it is Debit Note for Buyer?

View answer

For Purchase, we pass entry

Sales Dr

To Party

 

For Purchase Return, we pass opposite entry

Party Dr

To Sales

(In this entry, party is debited, so it is a debit note)

Transcript

Sales P Sales Return P Sells goods to Q Q Returns Goods to P It is Sales for P Purchase for Q` It is Sales Return for P Purchase Return for Q Q P Q P will give Q Tax Invoice or Bill of Supply P will give Q Revised Invoice (Always Seller Issue Invoice) (Always Seller Issue Invoice) This Revised invoice is Credit Note for P and Debit Note for Q Concept of Revised invoice Debit Note and Credit Note
  1. Courses
  2. Free GST Certification Course

    3. Chapter 5 GST Invoices

    Chapter 6 GST Return Form No and Due Dates →
Chapter 6 GST Return Form No and Due Dates →
Courses
Free GST Certification Course

About the Author

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.