Answer

1. F

   Facts

   Sec 34 allows a credit note to reduce your tax only if it is declared by 30 November of the year after the original supply, or the annual return date if earlier. After that, it cannot reduce output tax.

2. P

   Provisions and law

   • Sec 34, CGST Act 2017Credit and debit notes; credit notes must be declared by 30 November of the next year
   • Sec 37, CGST Act 2017Details of outward supplies to be furnished in GSTR-1
3. A

   Analysis

   If you agreed a ₹1,00,000 rate difference for a sale made in 2025-26, issue and report the credit note by 30 November 2026. Many businesses settle such discounts after the year ends, so track pending ones in your monthly check.

4. C

   Conclusion

   1. 1List pending discounts and returns against last year's sales
   2. 2Issue credit notes and report them in GSTR-1
   3. 3Stop by 30 November or the annual return date
   4. 4Get buyers to accept them in IMS

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