TaxTMI 
TaxTMI 
I sold goods before the GST rate change (say, on 20th September 2025, when the applicable tax rate was 28%). The customer returned the goods after the rate change (say, in October 2025, when the tax rate became 18%). While issuing a credit note in October 2025, should I apply the old tax rate of 28% or the new rate of 18%?
GST rate on credit notes post rate change
08 Sep 2025 
4 Replies 
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Credit note tax rate must match the original supply rate; post-change rates cannot be applied on returns.
Section 34 requires credit notes to reflect the tax charged in the original supply invoice; returns of goods effect a reversal of the original supply and GST law does not permit applying a subsequent rate in the credit note. The recipient's registration status affects treatment, and issuing a credit note at the original rate in a later period may create reporting implications in GSTR-1 and GSTR-3B. (AI Summary)
Section 34 requires credit notes to reflect the tax charged in the original supply invoice; returns of goods effect a reversal of the original supply and GST law does not permit applying a subsequent rate in the credit note. The recipient's registration status affects treatment, and issuing a credit note at the original rate in a later period may create reporting implications in GSTR-1 and GSTR-3B. (AI Summary)