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

Rao Engineering Ltd. issued an invoice in June 2024 (FY 2024-25) for Rs 4,00,000 plus GST. In September 2025 it found it had undercharged the taxable value by Rs 50,000 and issued a debit note for that amount. Which statement is correct as per section 34 of the CGST Act, 2017?

The details must be declared in the return for the month in which the debit note is issued, here September 2025. Section 34(4) sets this rule. The 30 November cut-off applies to credit notes, not to debit notes, and the original invoice month is not relevant.

  1. AThe debit note details must be declared in the return for the month in which the debit note is issuedCorrect
  2. BThe debit note details must be declared in the return for the month of the original invoice, June 2024
  3. CThe debit note must be declared by 30 November following the end of the financial year of the original supply
  4. DThe debit note need not be declared in any return because it is a supplementary document

Explanation

Section 34(4) requires the debit note details to be declared in the return for the month in which the debit note is issued, which is September 2025. The 30 November time limit applies only to credit notes under section 34(2), so that option is wrong.

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