Rate difference Debit Note to Labour Service provider, Goods and Services Tax - GST

[Nihal Shaikh]

Dear Sir,

Our business type is Steel trading & we doing transactions of purchase and sale of steel only (no other service).

We had taken Labour service from a Labour Service provider and he charged us extra rate in his GST bill

Now we want to raise a debit note of a rate difference on him, In this debit note should we charge him GST? OR without GST?

Posts / Replies

[Kishan Barai]

Reverse, edit of billing in not allowed in GST Portal, adjustments has to be made via issuing the credit or debit notes.

[KASTURI SETHI]

Overwriting always creates suspicion. Labour charges are already part of the cost of the product. No question of separate charging of labour charges. If done, it would amount to overvaluation. However, if the Querist can issue correct and true revised Invoice, then there is no problem. Legally correct revised invoice will not create any problems. Rightly advised by Sh.Ganeshan Kalyani Ji.

[KASTURI SETHI]

Sh.Kishan Barai Ji, Regarding credit note or debit note as per factual situation I agree with you.

[Kishan Barai]

Thank You Sir 

[YAGAY AND SUN]

Availing appropriate ITC is the essence of GST which is also to be matched in the returns of both the buyer/seller. Any excess payment of tax and accordingly availment should be knocked off through prescribed manner i.e. Debit Notes/Credit Notes as the case may be.