https://www.taxtmi.com/highlights?id=104858 GST treatment of tax on credit notes for returned goods requires distinguishing a GSTR-3B/GSTR-2A mismatch from wrongful input tax credit. Credit-note tax relating to the supplier's own outward supply is not input tax and should reduce output tax liability; where credit notes are timely declared, original output tax was paid, and no duplicate reduction or revenue loss arises, incorrect return-table reporting is procedural. A demand must remain within the grounds stated in the show cause notice. For 2017-18, recipient reversal of credit was not a condition for the supplier's output-tax reduction; recipient non-reversal is separately assessable. Interest and penalty depend on tax being due. en-us Mon, 12 Oct 2026 04:18:33 +0530 Mon, 12 Oct 2026 04:18:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=104858 GST treatment of tax on credit notes for returned goods requires distinguishing a GSTR-3B/GSTR-2A mismatch from wrongful input tax credit. Credit-note tax relating to the supplier's own outward supply is not input tax and should reduce output tax liability; where credit notes are timely declared, original output tax was paid, and no duplicate reduction or revenue loss arises, incorrect return-table reporting is procedural. A demand must remain within the grounds stated in the show cause notice. For 2017-18, recipient reversal of credit was not a condition for the supplier's output-tax reduction; recipient non-reversal is separately assessable. Interest and penalty depend on tax being due. Highlights GST Mon, 12 Oct 2026 04:18:33 +0530 https://www.taxtmi.com/highlights?id=104858