Credit note Issue reg

This query is : Resolved

Gopalakrishnan V (Querist)
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05 March 2026 Company issued service invoice to us during October 2025. We accounted the same and filed our GST return accordingly. Now the Company cancelled the invoice raised in October and asking us to account in current date by issuing fresh invoice, but Company is not issuing credit note for the cancelled invoice. Is it mandatory to get credit note for the cancelled invoice. Kindly clarify

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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06 March 2026 You should not accept a "fresh invoice" as a replacement for a "cancellation." A cancellation of a reported invoice must be backed by a Credit Note to ensure the GST portal reflects the correct tax position. Accepting only a new invoice would result in an unexplained ITC discrepancy and potential penalties for wrongful ITC retention.

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