Last date for "Issuance" of GST credit note?

Let's have a look at the language used by Clause 101 of the Finance Bill, 2022, which sought amendment in the sub-section (2) of section 34 of the Central Goods and Services Tax Act so as to provide for the 30th day of November following the end of the financial year, or the date of furnishing of the relevant annual return, whichever is earlier, as the last date for issuance of credit notes in respect of any supply made in a financial year.?

However, Section 102 of the Finance Act, 2022 used the below-mentioned terminology,

102. In section 34 of the Central Goods and Services Tax Act, in sub-section (2), for the word “September”, the words “the thirtieth day of November” shall be substituted.

Now, the government vide Notification 18/2022 dated 28th September 2022 notified the above-mentioned change in Section 34(2) w.e.f. 1st October 2022.

Now the debate is, is there any time limit in statute for the issuance of Credit Notes?

In GST, the provision of the Credit notes is governed through Section 34(2), which states that,

(2) Any registered person who issues?a credit note?in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than?the thirtieth day of November following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed:

Provision lays down the time limit for "Furnishing the Credit Note" not for "issuance".

Now, why this is relevant?

Earlier, it was mentioned that "by not later than September", which has been replaced by "30th November". That means, the same can be furnished in the October'22 return and even if any taxpayer files the return belatedly, the maximum time for furnishing the same is 30th November now.

In Crux, the time limit for declaration of already issued or still to be issued is extended up to 30th November 2022.

Our Cents

In our view, this change is applicable from FY 2021-22.

Earlier, there was no date mentioned, hence while filing the belated return of September, the portal still allowed to show the Credit Notes pertaining to FY 2021-22.

Now, since we have a clear date, on how it will be managed with GST Portal, it will be interesting to see that. As, if anyone is trying to file the belated return of October'22, he won't be able to show the Credit notes post 30th November.

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