GST Rate on goods return/Credit note after Increase in rate

[ROHIT GOEL]

Dear Experts,

Party A had received goods on 15th Sep 2025 at rate of 12% however thereafter GST Rate was increased to 18%. Now, Party A wants to return the goods. My query is:

a) What rate should be charged on credit note-12% or 18%

b) Legal citation/provision which specifically addresses this situation

The doubt arises because if the return is treated as a new supply then rate applicable on return date should be charged. However, on flip side, supplier earlier paid 12% GST on o/w supply then how we can claim back 18% GST from govt via credit note. Kindly shed some clarity.

AI Summary

Whether credit note on returned goods should apply GST rate at sale or at return Section 34 CGST Act Buyer received goods on 15 Sep 2025 taxed at 12%, then GST rate increased to 18%; buyer now wants to return the goods. The forum question asks whether the credit note should reflect 12% or 18% and requests the legal provision governing the applicable rate. The poster notes the tension between treating the return as a new supply (applying the rate on return date) and the supplier having already paid 12% GST on the original outward supply, questioning how an 18% charge could be reclaimed.