CST clarification

[Roopa Shree]

Dear Sir / Madam,

We have charged full rate of tax for an interstate customer  for not issuing 'C' form.  If the customer subsequently issue the 'C' form within 6 months can we adjust the differential tax charged excess by issuing the Credit note.  If the transaction is clear please provide the relevent notification for our record to convince customer.

AI Summary

Can a Credit Note Adjust Excess Tax for Interstate Sales Without Initial 'C' Form? Experts Weigh In A query was raised regarding whether a credit note can be issued to adjust excess tax charged to an interstate customer if a 'C' form is provided within six months. One expert stated that excess tax over 2% cannot be reversed if the sale was not initially made against a 'C' form. Another expert argued that a credit note could be issued even after six months, as the time limit applies only to goods returns, not credit notes. The differential tax should be refunded since excess collection is not permissible.