GST Portal Updates: Debit/Credit Notes de-linked with Invoice

By | September 15, 2020
(Last Updated On: September 15, 2020)

Section 34 of the Central Goods and Services Tax Act (‘CGST Act’) deals with the issuance and reporting requirement of debit/credit notes under the GST regime. The provisions originally introduced in the CGST Act provided that Supplier shall report the details of debit/credit notes in Form GSTR 1 along with the corresponding tax invoice number and date. The GSTN portal was also allowing reporting of single invoice against one debit note/credit note. In other words, it didn’t allow the facility of mentioning multiple tax invoices against a single debit note/credit note.
It’s a usual practice in various industries to issue a single debit/credit note against multiple tax invoices and thus, issuance of separate debit/credit note against each invoice was creating huge compliance burden on the suppliers.
In view of the above challenge faced by the industry, the Central Goods and Services Tax (Amendment) Act, 2018 amended Section 34 of the CGST Act w.e.f. 1-2-2019 to allow the issuance of a single debit note/credit note against one or more tax invoices or vice-versa. The said amendment nullified one to one linking of debit/credit note with invoice.
Despite the above amendment, the GST portal did not allow facility of mentioning multiple tax invoices against a single debit/credit note. Thus, GST portal was not synchronized with the provisions of the CGST Act. Since practically the situation remains the same as it was before the amendment, several requests had been made by various taxpayers and associations to bring the necessary update on GST portal in line with the amended provision.
Now GSTN Portal has removed such linking The GSTN portal has now updated the portal as per which, details of original invoice(s)
number are not required to be mentioned while reporting the Debit/Credit Note. This update has given relief to taxpayers issuing single debit/credit note against multiple invoices

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email :

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