Credit note last date

[Madhavan iyengar]

Credit note for adjustment of GST tax liability for supplies made in FY 2017-18 what was the last date for issue of credit note for adjustment of tax liability was it 30th september 2018 or 31st march 2019

[KASTURI SETHI]

The last date for issuance of credit note for adjustment of GST tax liability for the year 2017-18 is 30.9.18 or the date of filing the Annual Return (whichever is earlier).Now the last date of filing Annual return for the year 2017-18 stands extended. Now last date for filing annual return is 30.6.19 and if you file annual return prior to the date of 30.6.19 for example on 15.6.19, then credit note cannot be issued after 15.6.19.

This is my interpretation of Section 34 (1) & (2) of CGST Act.

[KASTURI SETHI]

The Common Portal System should be modified to this extent that is according to the extension of last date of filing annual return.

[Madhavan iyengar]

Kasturi sir thanks for your reply

In case if credit note is issued before filing annual return ie as per your reply by 15th june 2019 due to extended period of annual return for fy 17-18 following points need to be addressed

a) last date of filing of GSTR-1 with amendments for fy 17-18 was by 31/03/2019 ( and return was to be filed by 11/04/19 for monthly tax payers)

b) Last date to claim credit for fy 17-18 was 3B filing date for march 2019 ie by 20th April 2019

In view of above how liability can be adjusted in GSTN portal in respect of credit note issued for fy 17-18 or you can issue credit note in april / may 19 and incorporate the credit note in GSTR-1 for the said months and thus adjust tax liability of fy 17-18

[SHARAD ANADA]

(2) Any registered person who issues a credit note in relation to a supply of goods or services or both shall declare the details of such credit note in the returnforthemonthduringwhichsuch credit note has been issued butnotlaterthanSeptember following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whicheverisearlier, and the tax liability shall be adjusted in such manner as may be prescribed:
Provided that no reduction in output tax liability of the supplier shall be permitted, if
the incidence of tax and interest on such supply has been passed on to any other person

In my view to give GST effect CN for fy 17-18 can be issued till 20th Oct 2018 as 20th Oct 2018 is earlier than annual return due date 30.06.2019

[SHARAD ANADA]

Read 30.09.2018 instead of 20.10.2018

[KASTURI SETHI]

When the last date of filing a of return is extended, the factor "whichever is earlier" is also effected. Moreover, Common Portal System should also be modified accordingly. The GST law is in its infancy and Common Portal System has not working perfectly since the implementation of GST so it is my wild guess that Govt. may give opportunity for reconciliation of the figures for two or three years cumulatively.

[KASTURI SETHI]

The words, "Whichever is earlier" stands for the date if the annual return is filed earlier than the last date of filing annual return. Thus the words, "Whichever is earlier" stands moved with the extended date. Then deadline for issuance of Credit Note will be the actual date of filing annual return which is before the last date of filing annual return as already given example in my reply above.

AI Summary

Credit note issuance deadline: earlier of post year statutory cut off or actual annual return filing determines GST adjustment.
Issuance of a credit note for adjusting GST on supplies made in a financial year must be declared in the return for the month it is issued but not later than the September following that financial year or the date of furnishing the relevant annual return, whichever is earlier. Where the statutory annual return filing date is extended, practitioners differ on whether the extended deadline moves the comparator or whether the original September cut off governs; practical reconciliation and portal reporting constraints affect implementation.