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.

[KASTURI SETHI]

Pl.expand the abbreviation MMR.

[sandeep rairakhia]

Maximum marginal rate.

on the MRP, we add the MMR % + Tax % to get the List price.

so if for a product the MMR % is 10% when we create an invoice.

on doing sales return credit note, the MMR % is changed to 12%. then in return should it be 10% or 12%

[KASTURI SETHI]

What is name of your product and Chapter/Heading/Sub-heading ?

[KASTURI SETHI]

With the implementation of GST the concept of MRP based valuation is no more in force now. Transaction value under Section 15 of CGST Act is in force. Credit note in respect of sales return is to be issued on 12 % latest. Margin is included in the taxable value while computing tax to be paid. Tax is payable on the amount of margin also.

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 A participant clarifies that under GST, the concept of Maximum Retail Price (MRP) based valuation is obsolete, and the transaction value per Section 15 of the CGST Act is applicable.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.