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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.
GST
Credit notes issued after year end in GSTR-9C
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Provisions
Sec 34, CGST Act 2017; Rule 80(3), CGST Rules 2017
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.
Close
- List credit notes issued after year end for the year.
- Check they were issued by 30 November.
- Show them as reconciliation items.
- Keep links to original invoices.
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