Change in tax rate

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Manu Aggarwal (Querist)
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08 March 2018 Advances Received Rs 1120(1000+120) including tax, from customer on 12/10/2017. Tax Rate at that time was 12%.. Now on 23/02/2018 goods supplied against that advance. Tax rate is 5%.. How to cope up with this situation. Should i issue credit note.. of yes? then what will be the credit note amount?

Natasha jhaver

Natasha jhaver (Expert)
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09 March 2018 The same will be governed by Section 14(b)(ii)
where the invoice has been issued and payment is received before the
change in rate of tax, the time of supply shall be the date of receipt of payment or
date of issue of invoice, whichever is earlier;
I assume that you have issued the tax invoice at the time of receiving the advance. Therefore the tax rate will be 12% only.