Answer

1. F

   Facts

   Credit notes for returns or price reductions are reported in GSTR-1 in the credit and debit notes table, linked to the buyer's GSTIN. Under Sec 34, a credit note must be declared by 30 November of the year after the original supply, or the annual return date if earlier.

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 sold goods worth ₹2,00,000 in March 2026 and the buyer returned half in May 2026, issue a credit note of ₹1,00,000 plus tax and report it in May's GSTR-1. Your liability falls, but only if the buyer reverses the matching ITC on his side. Credit notes issued after the Sec 34 deadline cannot reduce your tax, though you can still issue a commercial note.

4. C

   Conclusion

   1. 1Issue a credit note with reference to the original invoice
   2. 2Report it in GSTR-1 for the month of issue
   3. 3Check that GSTR-3B liability reduces accordingly
   4. 4Ask the buyer to accept it in IMS and reverse the credit

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