Tax Only Credit Note

Check if the credit note is correctly lined to the original invoices in the GST portal.

Ensure the "TAX ONLY" credit note details are properly captures in the GSTR-1 return for September.

Verify if there is any mismatch in dates or values between the credit note and GST portal entries.

Credit note for excess tax after the 22 September 2025 rate change:

• If you charged 12% instead of 5% on supplies after 22 September 2025 (when the rate changed), issue a credit note (Sec 34) for the excess tax (a "tax-only" credit note is allowed where tax charged exceeds tax payable). The recipient (government entity) reverses the excess ITC.

• If the government entity deducted GST TDS on the higher value, coordinate.

A credit note dated 30 September 2025 with an IRN generated on 9 October would ordinarily be reported in the October GSTR-1, not the September GSTR-1. GSTR-1 reporting follows the period in which the credit note is furnished; generating the IRN later does not make it appear in an already filed September return. Check the October GSTR-1’s registered credit-note table and the e-invoice auto-populated data. If it has not flowed through, add or correct the credit-note details in October’s GSTR-1, subject to the applicable reporting and amendment limits.

The GST rate depends on the goods or services and the effective notification; verify that 5% applies to these supplies from 22 September. A tax-only credit note is generally appropriate where the taxable value is unchanged and only excess tax is being reduced, provided the statutory conditions are met and the recipient reverses any input tax credit attributable to the reduction.

This date and IRN reconciliation is an important control in credit-note and return filing workflows. Manual reconciliation across invoices, e-invoice data and GSTR-1 is difficult; automation reduces repetitive work while professional judgment remains in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a walkthrough tailored to your GST workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1