Skip to content

CA Intermediate · Taxation · Tax Invoice; Credit and Debit Notes

Gupta Pvt Ltd (Delhi) issued an invoice on 12 July 2025 for taxable value Rs 5,00,000 with IGST at 18%. On 20 November 2026, it discovers that the taxable value should have been Rs 4,50,000 and wants to issue a credit note for the reduction. The financial year of the invoice is 2025-26. What is the last date by which the credit note can be declared in the return so that the tax liability can be reduced?

The credit note must be declared in the return for a month not later than 30 November following the end of the financial year of the invoice, or the annual return date if earlier. For 2025-26 invoices, that is 30 November 2026.

  1. A30 November 2026Correct
  2. B30 September 2026
  3. C20 November 2027
  4. D31 March 2027

Explanation

A credit note relating to invoices of a financial year must be declared in the return for the month not later than 30 November following the end of that financial year, or the date of filing the relevant annual return, whichever is earlier. For 2025-26 this is 30 November 2026. The date of 30 September applied earlier law, so it is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Tax Invoice; Credit and Debit Notes shows your real accuracy, how long you take and where you lose marks.

Practise Tax Invoice; Credit and Debit NotesFree diagnostic mock

More Tax Invoice; Credit and Debit Notes questions