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)

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)

16 November 2021 If the tax was paid earlier over the sale, issue credit note with tax.

Udaya Chandran

Udaya Chandran (Expert)

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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