Credit Note validity

This query is : Resolved

Quick Summary

GST credit notes for AMC/warranty can be issued anytime, but GST reduction is allowed only if reported within Section 34 timelines (30 Nov or annual return, whichever earlier). Valid for adjustments, but delays restrict tax benefit.

NISHANT SIPANI

NISHANT SIPANI

(Querist)
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02 January 2026 Dear Sirs,

We seek your clarification regarding issuance of a credit note under GST for AMC services.

The original tax invoice for AMC services was issued on 30.04.2025. We are now proposing to issue a credit note towards AMC / warranty-related cost adjustment.

Our understanding is that, under GST provisions, a credit note may be issued beyond six months of the invoice date, subject to the time limit prescribed under Section 34 of the CGST Act (i.e., up to 30th November following the end of the relevant financial year or the date of filing of the annual return, whichever is earlier).

However, we would like to confirm whether:

A GST credit note can be issued for the above transaction at this stage, and

Whether GST adjustment is permissible in case the credit note pertains to warranty / AMC-related cost.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 January 2026 A GST credit note for AMC / warranty-related adjustment can be issued at any time. However, reduction of output GST is permitted only if the credit note is declared in returns within the Section 34 time limit—i.e., up to 30th November following the end of the relevant financial year or before filing the annual return, whichever is earlier. AMC / warranty adjustments are valid grounds for issuing a GST credit note.

NISHANT SIPANI

NISHANT SIPANI

(Querist)
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03 January 2026 If a company issue Many Credit notes in a month reason Customer wishes for ISD reg invoices instead of regular reg. can department ask clarification for high frequency of issuing credit note.

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