CA Final · Indirect Tax Laws · Tax Invoice, Credit and Debit Notes

Mehta Machines Ltd. issued a tax invoice on 10 June 2025 (FY 2025-26) for supply of machinery to Rao Industries. In March 2026, part of the goods was found deficient, and Mehta Machines decided to issue a credit note. The incidence of tax on the supply has not been passed on to any other person. Up to what time limit can Mehta Machines declare the credit note in its return so that its output tax liability is reduced?

The credit note must be declared in the return for the month of issue, but not later than 30 November 2026 or the date of furnishing the relevant annual return, whichever is earlier. The supply was made in FY 2025-26, and the deadline is the thirtieth of November following that financial year's end.

1. AIn the return for the month of issue, but not later than 30 September 2026 or the date of the annual return, whichever is earlier
2. BIn the return for the month of issue, but not later than 30 November 2026 or the date of furnishing the relevant annual return, whichever is earlierCorrect
3. CIn the return for the month of issue, but not later than 30 November 2025 or the date of furnishing the annual return, whichever is earlier
4. DIn the return for the month of issue, with no outer time limit