TaxTMI 
TaxTMI 
If a supplier issue Credit note to the recipient, would it be impacted on his ITC ledger or ITC availability in GSTR 2A.
Credit note and ITC
09 Aug 2023 
7 Replies 
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Input tax credit reduction required when a supplier issues a credit note, reflected in GSTR-2A and reversed in GSTR-3B.
Issuance of a credit note by a supplier reduces the recipient's Input Tax Credit, appears in the recipient's GSTR-2A CNDN entries when reported by the supplier, and requires the recipient to reverse the corresponding ITC in its periodic return filing, with reversal entries now auto-populated into the designated reversal field rather than treated as an additional credit. (AI Summary)
Issuance of a credit note by a supplier reduces the recipient's Input Tax Credit, appears in the recipient's GSTR-2A CNDN entries when reported by the supplier, and requires the recipient to reverse the corresponding ITC in its periodic return filing, with reversal entries now auto-populated into the designated reversal field rather than treated as an additional credit. (AI Summary)