Treatment of Credit Note


This query is : Resolved 

Quick Summary
The discussion clarifies the proper accounting treatment for credit notes. It establishes that credit notes should be deducted directly from the outstanding liability. Furthermore, it is confirmed that an Input Tax Credit (ITC) reversal is necessary when a credit note is issued.

01 June 2023 What should be the ideal treatment of Credit Note? Whether it should be deducted from liability or should enhance the ITC?

03 June 2023 It should be deducted from liability.
ITC reversal required.

08 June 2023 Thank you very much for your kind gesture of sharing valuable time


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