{"id":76911,"date":"2026-10-09T11:21:12","date_gmt":"2026-10-09T11:21:12","guid":{"rendered":""},"modified":"2026-10-09T11:21:12","modified_gmt":"2026-10-09T11:21:12","slug":"input-tax-credit-reversal-on-supplier-credit-notes-was-not-mandatory-bona-fide-igst-adjustment-did-not-attract-fresh-demand","status":"publish","type":"post","link":"https:\/\/goodsandservicetax.in\/GST\/?p=76911","title":{"rendered":"Input tax credit reversal on supplier credit notes was not mandatory; bona fide IGST adjustment did not attract fresh demand."},"content":{"rendered":"<p>Input tax credit reversal on supplier credit notes was not mandatory; bona fide IGST adjustment did not attract fresh demand.<br \/>Case-Laws<br \/>GST<br \/>Recipient input tax credit did not require reversal solely because a supplier issued credit notes during the relevant period: neither the Act nor the Rules imposed that obligation, the statutory matching mechanism was inoperative, and Rule 37 concerned non-payment to suppliers. Accordingly, the premise for reversal failed. Excess IGST adjusted against CGST and SGST liabilities was procedurally irregular because the prescribed refund, re-credit or subsequent IGST-adjustment route was not used. However, as a bona fide first-year GST correction causing no revenue loss, it did not justify a fresh tax demand, interest or penalty; the departmental appeal was dismissed.<br \/> TMI Updates &#8211; Highlights, quick notes, marquee, annotation, news, alerts <\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n<p align=\"center\"><strong>Plain text (Extract) only<\/strong><BR>For full text:-<a href=\"https:\/\/www.taxtmi.com\/highlights?id=104748\">Visit the Source <\/a><\/p>\n<p align=\"center\">=  =  =  =  =  =  =  =<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Input tax credit reversal on supplier credit notes was not mandatory; bona fide IGST adjustment did not attract fresh demand.Case-LawsGSTRecipient input tax credit did not require reversal solely because a supplier issued credit notes during the releva&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-76911","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/76911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76911"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/76911\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}