Unjustenrichment - Issue of Credit Note

[LALIT MUNOYAT]

Can a supplier issue a Credit Not to its recipient for GST collected in excess, on downward revision of the price after the supply was made. The original invoice to which the CN is mapped shows GST collected on the Full value calculated at the original rate. This will reduce the output liability of the Supplier. IS such a CN equal to to the Refund as envisaged in the ACT.

AI Summary

Suppliers Can Issue Credit Notes for Excess GST Per Section 34 CGST Act, 2017, Conditions Apply A discussion on a forum addresses whether a supplier can issue a credit note for GST collected in excess after a price revision. The consensus is that a credit note is permissible under Section 34 of the CGST Act, 2017, if certain conditions are met, such as excess tax charged or goods returned. However, if the tax burden has been transferred to another party, the supplier cannot reduce their output tax liability. Judicial precedents emphasize that discounts must be known at the time of sale for refunds to be valid, and suppliers must prove they haven't passed the tax burden to others to avoid unjust enrichment.