Answer

1. F

   Facts

   Credit notes for the year issued up to 30 November of the next year can reduce that year's tax, under Sec 34. In accounts they may be in a different year, so they become a reconciliation item.

2. P

   Provisions and law

   • 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.
   • Rule 80(3), CGST Rules 2017A taxpayer whose aggregate turnover exceeds ₹5 crore files a self-certified reconciliation statement in GSTR-9C along with GSTR-9.
3. A

   Analysis

   If accounts recognise the discount in March but the credit note is issued in May, GST reduces in May's GSTR-1 but the accounts show it in the old year. Show this as an adjustment in 9C. Credit notes issued after 30 November cannot reduce tax. Keep a list linking credit notes to original invoices.

4. C

   Conclusion

   1. 1List credit notes issued after year end for the year.
   2. 2Check they were issued by 30 November.
   3. 3Show them as reconciliation items.
   4. 4Keep links to original invoices.

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