This section will try to address accounting effect in miscellaneous cases like mentioned below :
there is difference in physically received items (GRN qty) compared to invoiced qty or value of goods physically received (GRN value) doesn’t match invoice value
Invoiced consignment has some items which were not present in the purchase order (Unexpected qty)
Case 1 : Value of goods received (GRN value) is less than Invoiced value
In such a event, brand needs to issue a credit note to eshopbox.
- Taxable value of credit note = taxable value in invoice - taxable value of GRN items
- Tax = GST in invoice - GST of GRN items
Case 2: Value of goods received (GRN value) is greater than Invoiced value
In such a event, brand needs to issue a debit note to eshopbox.
- Taxable value of debit note = taxable value of GRN items - taxable value in invoice
- Tax in debit note = GST of GRN items - GST in invoice
Examples for sample
Invoice |
Physically received (GRN) |
Corrective action to be taken |
|||||||||
Qty |
taxable value |
gst |
Value (inclusive of taxes) |
Qty |
taxable value |
gst |
value (inclusive of taxes) |
Document to be issued by Brand |
taxable value |
gst |
value (inclusive of taxes) |
100 |
47619.0 |
2381.0 |
50000 |
98 |
46666.7 |
2333.3 |
49000 |
Credit note |
952.4 |
47.6 |
1000.0 |
100 |
47619.0 |
2381.0 |
50000 |
100 |
47142.9 |
2357.1 |
49500 |
Credit note |
476.2 |
23.8 |
500.0 |
100 |
47619.0 |
2381.0 |
50000 |
100 |
48571.4 |
2428.6 |
51000 |
Debit note |
952.4 |
47.6 |
1000.0 |
Case 3 : If items not present in the Purchase order are found (Unexpected items) and GRN value matches with invoice value.
Unexpected items cannot be inbound in our warehouse and Brands need to pick this item from the warehouse. As the GRN value matches with invoice value, there will no entries of same in books of accounts.
Case 4 : If items not present in the Purchase order are found (Unexpected items) and GRN value doesn’t match with invoice value
Unexpected items cannot be inbound in our warehouse and Brands need to pick this item from the warehouse. As GRN value doesn’t match with invoice value, the treatment for same will corrected in the same manner as case 1 and case 2.
Key Pointers:
In case Brand issues a credit note in relation to a supply of goods shall declare the details of such credit note in the return for the month during which such credit note has been issued .
- The details have to be declared on the date whichever is earlier
September following the end of the year in which such supply was made,
the date of filing of the relevant annual return