Find
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.
GST
Credit notes before the 30 November deadline
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Provisions
Sec 34, CGST Act 2017; Sec 37, CGST Act 2017
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.
Close
- List pending discounts and returns against last year's sales
- Issue credit notes and report them in GSTR-1
- Stop by 30 November or the annual return date
- Get buyers to accept them in IMS
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