Credit Note to be issued in Old tax rate or new tax rate

[Venkatesh Dhongadi]

X Supplied 12% GST rate goods to Y before 22nd Sept 2025 at 100 plus GST  which totals to Rs. 112. Now the same goods being returned by Y. Whether Credit note to be issued @ 12% or 5% as there is change in rate of tax w.e.f. 22nd Sept. 2025.

AI Summary

Credit notes for returned goods after GST rate cut: apply original 12% tax from invoice, not 5% Where goods were supplied prior to 22 September 2025 at 12% GST and are subsequently returned after a rate reduction to 5%, the issue is the applicable GST rate for issuance of a credit note for the return. The credit note must reflect the original tax rate and tax amount charged on the relevant tax invoice (12%), with corresponding reduction of output tax liability to that extent, and the recipient is required to reverse the related input tax credit consistent with the original invoice tax.