Guide
Credit and debit notes under GST
How an issued GST invoice is corrected: a credit note when it charged too much, a debit note when it charged too little (CGST section 34).
Once a tax invoice is issued it is not edited. Under section 34 of the CGST Act, an invoice that charged more taxable value or tax than was payable, or for services found deficient, is corrected with a credit note. One that charged less is corrected with a debit note.
Each note is its own document with its own serial number and refers to the invoice it corrects. A credit note has to be declared in a return no later than 30 November after the end of the financial year, or the date the annual return is filed, if that is earlier.
In ReliTime
In ReliTime an issued invoice is immutable. Credit and debit notes are raised against it, numbered in their own series, and a credit can never return more than the invoice charged.
This is a guide, not tax advice. Check how it applies to your own supplies with your adviser.
Related
Questions people ask
Can a credit note correct only the tax?
Yes. A credit can reduce the tax alone and leave the taxable value standing, where the tax was wrong.
How do I correct a credit note issued by mistake?
With a debit note against the same invoice. Neither document is edited once issued.
See it on your own kind of work
We set ReliTime up with a walkthrough rather than a sign-up form. We will take you through a working organisation, from a week of timesheets through approvals and work in progress to a GST invoice, answer your questions as we go, and set up yours.
Or write to hello@relitime.com.