TaxTMI 
TaxTMI 
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.
Credit Note to be issued in Old tax rate or new tax rate
19 Dec 2025 
5 Replies 
1807 Views Asked by
Credit note must mirror the original invoice tax rate; returns of original supplies use the original GST rate, not the new rate.
A credit note reduces the value and tax of the original supply and therefore must mirror the tax rate applied in the original invoice; if the supplier charged 12% GST originally, the credit note should be issued at 12% despite a subsequent change to 5%, whereas a later bona fide fresh supply by the returner would attract the rate prevailing at that later time. (AI Summary)
A credit note reduces the value and tax of the original supply and therefore must mirror the tax rate applied in the original invoice; if the supplier charged 12% GST originally, the credit note should be issued at 12% despite a subsequent change to 5%, whereas a later bona fide fresh supply by the returner would attract the rate prevailing at that later time. (AI Summary)