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credit note issue

partha (ACCOUNTANT) (80 Points)

07 July 2018

when I apply credit note issue in GST RETURN

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Deepak Gupta (CA Student) (15922 Points)
Replied 07 July 2018

A credit note can be issued in the following circumstances:

The taxable value shown in the invoice exceeds the taxable value of the supply.
The tax charged in the invoice exceeds the tax payable on the supply
The goods supplied are returned by the recipient
The goods/services are found to be deficient

The following aspects need to be noted:

Where there is no change in the taxable value/tax amount, a credit note need not be issued.
A credit note has to be issued by the supplier.
A credit note issued by a recipient, say for accounting purposes, is not a relevant document for GST purposes.

Once a credit note is issued, the details of the credit note should be declared by the supplier in the return of the month of the issue of credit note.

However, if not declared in that month, it can be declared in any return prior to September of the year following the year in which the original tax invoice was issued (or filing of annual return, whichever is earlier).