Question: If an invoice is issued on 01st March of a product X where tax rate is 18% and subsequently on 3rd March, product X rate is reduced to 12% and if on April 1st, a credit note is issued of that particular invoice, then what will be the tax rate on that credit note?
Answer: Credit note is nothing but a mode of correction of Tax Invoice issued. Thus, in case of return of goods, or change in its value, credit note needs to follow the same particulars unless it is issued to rectify the rate of tax in the invoice.
