Credit note = payment

[Nikhil Virkar]

Can issuance of financial credit note or GST credit note under Section 34 be considered as payment against the supply in terms of Section 16(2) read with Rule 34.

AI Summary

Debate on Whether GST Credit Notes Count as Payment Under Section 34 of CGST Act, 2017: Key Implications Discussed A discussion on whether financial or GST credit notes can be considered as payment under GST laws. Participants debated the implications of issuing credit notes under Section 34 of the CGST Act, 2017, and their impact on payment considerations and input tax credit (ITC). It was highlighted that financial and GST credit notes differ, and their issuance does not equate to payment. The discussion also covered scenarios where credit notes are issued after the statutory deadline, and the potential consequences on tax liabilities. Various viewpoints were shared, emphasizing compliance with GST regulations and avoiding legal complications.