MMR on GST Credit note

[sandeep rairakhia]

If we create an invoice with a MMR for a product, and then when taking a credit note if the MMR has changed, which MMR should apply to the credit note? the latest active one or the MMR applied on the invoice.

AI Summary

Clarification on GST Credit Notes: Use Updated MMR of 12% as per Section 15 of CGST Act. A discussion on a forum addresses the issue of which Maximum Marginal Rate (MMR) should apply to a credit note under the Goods and Services Tax (GST) when the MMR changes after the original invoice. The initial query seeks clarification on whether to use the MMR from the invoice or the updated rate. A participant clarifies that under GST, the concept of Maximum Retail Price (MRP) based valuation is obsolete, and the transaction value per Section 15 of the CGST Act is applicable. Therefore, the credit note should reflect the latest MMR of 12%, including the margin in the taxable value.