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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Procedural Compliance under GST

Mehta Traders Pvt Ltd supplied goods in September 2025 (financial year 2025-26) and issued a credit note for part of the supply. Under Section 34(2), by when must it declare the credit note in its return, at the latest, to reduce its output tax liability?

The credit note must be declared in the return for the month in which it is issued, and not later than 30 November following the end of the financial year of the supply, or the date of furnishing the annual return, whichever is earlier.

  1. AThe return for the month in which the credit note is issued, but not later than 30 November following the end of financial year 2025-26, or the date of furnishing the annual return, whichever is earlierCorrect
  2. BThe return for the month of the original supply, with no outer time limit
  3. C30 September following the end of financial year 2025-26, whichever is later than the annual return date
  4. DThe return for the month in which the recipient reverses the input tax credit

Explanation

Section 34(2) requires declaration in the return for the month of issue of the credit note, but not later than the thirtieth day of November following the end of the financial year of supply, or the date of the annual return, whichever is earlier. The 30 September date was replaced by November from 1-10-2022. Option 2 wrongly says there is no limit.

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