https://www.taxtmi.com/forum/issue?id=118759 Dispute arises from claiming ITC on sales returns where credit notes were issued; department treats credit notes as invalid documents for ITC under Section 16(2)(a) and seeks reversal. Taxpayers should document returns with books, stock entries, delivery challans, P&L and payment records to show revenue neutrality, consider refund remedies where applicable, and, if required, pursue appellate remedies. Reporting constraints in GSTR 3B led many taxpayers to record negative adjustments as ITC rather than reduce output tax. en-us Tue, 19 Sep 2023 12:18:52 +0530 Fri, 24 Jan 2025 10:40:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118759 Dispute arises from claiming ITC on sales returns where credit notes were issued; department treats credit notes as invalid documents for ITC under Section 16(2)(a) and seeks reversal. Taxpayers should document returns with books, stock entries, delivery challans, P&L and payment records to show revenue neutrality, consider refund remedies where applicable, and, if required, pursue appellate remedies. Reporting constraints in GSTR 3B led many taxpayers to record negative adjustments as ITC rather than reduce output tax. Discussion-Forum GST Tue, 19 Sep 2023 12:18:52 +0530 https://www.taxtmi.com/forum/issue?id=118759