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

Sharma Traders, a registered supplier in Pune, issued a tax invoice in August 2024 (FY 2024-25) to a registered buyer. In March 2025 the buyer returned part of the goods. Under section 34 of the CGST Act, 2017, what is the latest date by which Sharma Traders may declare the credit note in its return to reduce its output tax liability (assuming the annual return is furnished later than that date)?

The latest date is 30 November 2025. Section 34(2) sets the cut-off at the thirtieth day of November following the end of the financial year of the supply, or the annual return filing date if earlier. The supply was in FY 2024-25, so November 2025 applies.

  1. A30 September 2025
  2. B30 November 2025Correct
  3. C31 March 2026
  4. D30 November 2024

Explanation

Section 34(2) requires the credit note to be declared in the return for the month of issue, but not later than the thirtieth day of November following the end of the financial year in which the supply was made, or the date of furnishing the annual return, whichever is earlier. The supply was made in FY 2024-25, which ends 31 March 2025, so the cut-off is 30 November 2025. 30 September was the earlier limit before the 2022 amendment.

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