Credit Notes - Reversal of ITC by receipient - Effective date

[Shri Sasikumar]

Dear Experts,

We understand that the reversal of ITC by recipient for the allowability of credit note is mandated effective from 01/10/2025 due to the amenement to Sec. 34(2).

However, tax officials are still insisting on confirmation of reversal of ITC by the receipients for the previous notice periods upto FY 2024-2025.

Please advise.

Thanks in advance.

AI Summary

Input tax credit reversal for credit notes raises questions about application to earlier tax periods.
Recipient reversal of input tax credit for allowing a GST credit note is identified as effective from 1 October 2025 following amendment of section 34(2). The issue is whether confirmation of reversal may be required for earlier notice periods up to financial year 2024-25 despite that effective date.