GST on Sales Returns after 22nd September 2025

Dear Friends

22nd Sept 2025, GST changes query about Sales Returns.

GST rate of item reduced from 12% to 5% from 22nd September 2025.

If goods are sold before 22nd Sept 2025 at 12% GST,  and are returned after 22nd September 2025, what should be the GST rate on Credit Note for sales returns?  12% or 5%?

Replies (7)
Quick Summary
For sales made before 22 Sept 2025 at 12% GST, returns after the rate cut must use the same 12% in the credit note. As per Section 34 of CGST Act, credit notes must match the original invoice, regardless of later rate changes.

As on what date the Orginal Invoice of the Goods Sold , @ 12% before 22/9/2025 has been issued  ,Please clerify. 

One invoice sale date 14th August 25. & one invoice sale date is 12th Sept 25.

Both 12% gst sales bills.

Now sale return after 22nd Sept 25, so credit note for sales returns to be prepared at what rate 12% or 5%.

 

 

As per section 34 of the CGST 2017, credit note should be with reference to the Original Invoice , so even though rates have been changed, you have to issue credit note with old rate , because credit note is linked to original Invoice , and it's adjust the value and tax of the original supply and It's  reversal irrespective of the rate change. 

So , take more Opinions on this before applying practically. 

Thank you Mr. Prasad Nilugal for your clear reply.

Regards 

Manoj Punjabi

Your are welcome, however take more opinions on this query. 

But the old rate of 12% is not available now. How can we apply this? Our Books of account will not accept it.

The credit note for sales return should always be issued at the same GST rate that was applied on the original invoice. Since both invoices were billed at 12%, the return will also need to be credited at 12% (not 5%).

To avoid confusion and ensure accuracy in such cases, using GST billing software like Sleek Bill can make the process simple. It automatically tracks the original tax rate applied and prepares the credit note accordingly, saving time and preventing errors.

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