Notification/Circular No. NA (System functionality update by GSTN)
Applicable Act/Rule: Central Goods and Services Tax Act, 2017
GST Network has enabled an option in the Invoice Management System allowing taxpayers to decide whether ITC should be reduced while accepting a credit note. At the time of acceptance, taxpayers can select either “Yes” or “No” against ITC reduction.
Selection of “Yes” results in reduction of ITC and remains the default option.
Selection of “No” ensures that ITC is not reduced.
This option is intended to be used in cases where ITC has already been reversed in earlier returns or where ITC was never availed. Where multiple credit notes are accepted together using the checkbox facility, the selected ITC reduction option shall apply uniformly to all such records unless processed individually.
Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article.