Credit Notes - Reversal of ITC by receipient - Effective date

Recipient ITC reversal for GST credit notes applies prospectively, while qualifying post-supply discounts retain pre-existing reversal requirements.
Recipient ITC reversal attributable to a GST credit note is expressly required from 1 October 2025 where the supplier seeks output tax liability reduction. For earlier periods, this condition does not automatically operate retrospectively. Qualifying post-supply discounts remain subject to reversal of attributable ITC, while sales returns, deficiencies, invoice-value corrections, and commercial credit notes require transaction-specific examination. Withdrawal of the reversal-evidence procedure does not remove substantive reversal obligations. Earlier-period assessments should be supported by credit-note-wise reconciliation of tax adjustments and recipient ITC treatment. (AI Summary)