Govt may ease norms to allow 2-month window for ITC on credit notes

In a major relief to goods and services tax (GST) payers, the government is likely to amend Central GST (CGST) Rules, allowing recipients of goods and services up to two months to accept or reject a credit note and adjust the input tax credit (ITC) taken.

At present, taxpayers who use the Invoice Management System (IMS) have to accept or reject credit notes outright.

The move will give taxpayers flexibility and preclude a financial burden.

A credit note is given by the seller to the buyer in cases of sales returns, discounts, and over-billing to reduce the amount payable by