Credit note tax adjustment limit in gst

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This discussion clarifies the limits and rules for adjusting output tax on credit and debit notes within India's GST system. While there's generally no specific monetary limit for these adjustments, credit notes for sales returns typically need to be issued within six months of the invoice date. For returns after this period, especially for B2C transactions where the customer cannot issue a resale invoice, alternative procedures may be required. It's also noted that adjustments can often be made up to the filing of the annual GST return, specifically until September 30th following the financial year.

Rajesh TM

Rajesh TM (Querist)
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06 January 2020 dear experts,

Please help me to know any limit in adjusting output tax when issuing credit note (sales return).

any limit to debit note?

Thanks in advance

Regards
Rajesh

Gokul Sharma

Gokul Sharma (Expert)
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06 January 2020 NO SUCH LIMIT BUT SHOULD BE ISSUED WITHIN 6 MONTHS FROM INVOICE DATE.

Rajesh TM

Rajesh TM (Querist)
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06 January 2020 Sir
Suppose if return from customer is after 6 months. Then can we reverse output tax?

Gokul Sharma

Gokul Sharma (Expert)
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07 January 2020 YOU CAN REQUEST THE PARTY TO ISSUE SALE INVOICE AND BOOKED ITC

Rajesh TM

Rajesh TM (Querist)
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07 January 2020 sir,
For B2C customer what is the rule? they cannot issue sale invoice.
Also i came to know from reliable source that the limit for issuing debit and credit note is financial year full upto 30th sep when we are filing annual return of gst. so 1 and half years we can adjust output tax. for eg fy 19-20 we can adjust output tax till sep 2020. Please suggest.

Thanks in advance

Regards
Rajesh

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