Rate in GST rate

Rate / HSN codes 257 views 3 replies

mayank sanchety

41 Points Joined April 2016

The Issue pertains to the FY 2018-19, where by we Purchased goods @ 3 % GST rate , now in October the goods are returned back to the Vendor whereby the GST rate is revised to 0.25% by the government w.e.f 1st Oct 2019.

Now the Vendor has Issued us the Credit Note dated 1st Oct having GST rate @ 0.25%

Is It correct to issue credit note @ 0.25% , and for the Balance difference (3%-0.25%) , return back the GST amount difference to the Vendor.

Please suggest

Replies (3)

CA Dhruva Kalamanji

Chartered Accountant

1996 Points Joined April 2013

Hi mayank,

correct answere is credit note should be raised for original invoice. and hence rate of gst should be rate on the original invoce rate (3%). so your seller credit note is wrong.

secondly in your case gst effect is nill because last date to raise the credit note is 30th sep for invoices raised for 2018 19. so even if credit note is issued gst cant be reversed.

Thank you
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