Quick Summary
In a significant relief to Goods and Services Tax (GST) payers, the government is likely to amend the Central GST (CGST) Rules, allowing recipients of goods and services up to two months to accept or reject a credit note and adjust the Input Tax Credit (ITC) accordingly. At present, taxpayers using
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FAQ :
The amended CGST Rules will allow GST taxpayers up to two months to accept or reject a credit note issued by a seller, providing more time to adjust their Input Tax Credit (ITC).
A taxpayer can keep a credit note pending for one month. If their tax return filing is delayed, they get an additional month, making a total of two months.
After two months, non-action on the credit note will not be permitted under the revised rules.
IMS is an automated system designed to track invoices and help businesses claim Input Tax Credit (ITC). It was rolled out in October 2024 and is becoming an essential part of GST compliance.
Yes, if a recipient accepts a credit note in a tax period after the current one, they will be required to pay interest for the one-month delay.
This amendment is expected to affect approximately 15 million GST taxpayers, encompassing both large and small businesses.
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