TaxTMI 
TaxTMI 
GST Rate on goods return/Credit note after Increase in rate
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....ST Rate on goods return/Credit note after Increase in rate<br> Query (Issue) Started By: - ROHIT GOEL Dated:- 6-10-2025 Last Reply Date:- 8-10-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Dear Experts, Party A had received goods on 15th Sep 2025 at rate of 12% however thereafter GST Rate was increased to 18%. Now, Party A wants to return the goods. My query is: a) What rate shou....
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....ld be charged on credit note-12% or 18% b) Legal citation/provision which specifically addresses this situation The doubt arises because if the return is treated as a new supply then rate applicable on return date should be charged. However, on flip side, supplier earlier paid 12% GST on o/w supply then how we can claim back 18% GST from govt via credit note. Kindly shed some clarity. Reply By....
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.... Sadanand Bulbule: The Reply: Section 34(1) of the CGST Act, 2017: Where a tax invoice has been issued and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable, the registered person, who has supplied such goods or services, may issue to the recipient a credit note containing such particulars as may be prescribed. Credit note is di....
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....rectly linked to the original tax invoice - hence the rate and tax amount must be consistent with that original invoice. So in your case it should be 12% only Reply By KALLESHAMURTHY MURTHY K.N.: The Reply: Sir, I agree with the answer of Sri Sadanand Bulbule Sir. According to Sec. 34, when Party A returns the goods, the tax adjustment is based on the original invoice, not the new GST r....
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....ate. The supplier who sold the goods to Party A must issue a credit note for the return, applying the 12% GST that was charged at the time of the sale. The returns shall be filed accordingly. Hence, there is no question of claiming back @ 18% GST. Reply By Ganeshan Kalyani: The Reply: You may consider it to be fresh supply and charge new rate. Reply By Shilpi Jain: The Reply: If yo....
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....u issue credit note then you are reducing the original taxable value and GST @ 12%. If you as a recipient are treating the return as a fresh supply then @ 18%. <br> Discussion Forum - Knowledge Sharing ....