Answer

1. F

   Facts

   From the October 2025 tax period, IMS lets you declare the ITC actually availed on the original invoice. If you took no ITC, you reverse nothing.

2. P

   Provisions and law

   • Invoice Management System (GSTN advisories, October 2024 onwards)Recipients accept, reject or keep pending supplier records; records with no action are deemed accepted and flow into GSTR-2B; credit notes can be kept pending for one tax period from the October 2025 period.
   • Sec 34, CGST Act 2017Credit notes and debit notes adjust tax on an invoice; a credit note must be declared by 30 November after the year or the annual return, whichever is earlier.
3. A

   Analysis

   Earlier the full tax on an accepted credit note reduced your ITC, even if you never claimed the original credit. Now you enter the amount actually availed. For a credit note of ₹10,000 tax on an invoice where you claimed only ₹4,000 credit, you declare ₹4,000 as reversal. Keep the working showing what was claimed on the original invoice.

4. C

   Conclusion

   1. 1Find whether ITC was claimed on the original invoice and how much.
   2. 2Open the credit note in IMS and declare the ITC actually availed.
   3. 3Recompute GSTR-2B if needed.
   4. 4File GSTR-3B with the correct reversal and keep the working.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.