GST CREDIT NOTE QUERY......

The supplier can issue the credit note in respect of a tax invoice which has been issued by him earlier.

Credit Note should be issued by earlier of the following dates:

1. Date of filling of Annual return in which the Original Tax Invoice was issued; OR

2. 30th September of the FY immediately succeeding the FY in which the original Tax Invoice was issued,  Whichver is earlier
Query 1). In case supplier issued credit note after above mentioned time limit supplier is liable to pay adjusted credit note amoun t to GST Department?
Query 2). 1 st Query, is any interest is applicable? What is rate of interest? 18% or 24%?
Query 3). Receipent can reclaim ITC? How to reclaim? Supplier is required to issue debit note for credit note issed earlier after credit note issue Time limit?
Replies (1)
C/N is usually issued by the supplier to record sales return, reduction in value etc. 1) If the supplier issues C/N after the time limit, then GST liability of the supplier cannot be reversed. In other words, the supplier, in effect, can only issue financial credit note 2) Since, the liability cannot be reversed, no interest is applicable 3) The recipient would have already claimed ITC on the basis of original invoice and on issue of such financial C/N, ITC is not required to be reversed by the recipient.

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