https://www.taxtmi.com/forum/issue?id=114081 When a supplier replaces defective goods supplied under IGST but issues a credit note only for the basic value and invoices the replacement with IGST, the supplier should ideally issue a credit note including the tax component so the supplier's output tax liability is reduced; the recipient should not retain ITC on the original invoice and may claim ITC based on the replacement invoice. Section 34(2) requires credit notes to be declared in returns and provides adjustment mechanics, subject to the constraint that reduction is not permitted if the tax incidence was passed to another person. en-us Sat, 25 Aug 2018 15:56:33 +0530 Thu, 23 Jan 2025 15:55:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=114081 When a supplier replaces defective goods supplied under IGST but issues a credit note only for the basic value and invoices the replacement with IGST, the supplier should ideally issue a credit note including the tax component so the supplier's output tax liability is reduced; the recipient should not retain ITC on the original invoice and may claim ITC based on the replacement invoice. Section 34(2) requires credit notes to be declared in returns and provides adjustment mechanics, subject to the constraint that reduction is not permitted if the tax incidence was passed to another person. Discussion-Forum GST Sat, 25 Aug 2018 15:56:33 +0530 https://www.taxtmi.com/forum/issue?id=114081