Time Limit for Issuing Taxable Credit Note

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This discussion clarifies the rules around issuing credit notes for returned goods. If tax was previously paid on the original sale, the credit note must include tax. There's a specific time limit for issuing credit notes: it's until September following the financial year of the transaction, or until the annual return for that year is filed.

SUDHEEP M

SUDHEEP M (Querist)
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16 November 2021 Sir,

I Have issued a customer sales invoice one year before and now due to some customer complaint I want to take return of the said material. Then I want to know can I issue a credit note without tax for the said return. Or I will issue a Credit note with Tax. Please Clarify....

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 November 2021 If the tax was paid earlier over the sale, issue credit note with tax.

Udaya Chandran

Udaya Chandran (Expert)
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16 November 2021 Time limit to issue Credit Notes is till September followed by a financial year in which the actual transaction took place, tax invoice or till the date of filing annual return for that financial year.

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