Choosing the GST rate on a credit note
On a GST credit note ClaimDS uses the original invoice's rate; the latest or a manual rate apply only to a commercial, zero-GST note.
ClaimDS offers three tax bases on a settlement — original, latest and manual — but they're not a free three-way pick. Which ones are even available depends on the kind of credit note being issued, and that's the thing to understand first.
GST rate selection has legal consequences and conditions. This page describes how ClaimDS behaves; confirm the correct treatment with your tax advisor. This is general guidance, not tax advice.
Original — for a real GST credit note
A Section 34 GST credit note must carry the same rate as the original invoice — that's what makes it a valid tax adjustment. So when ClaimDS issues a GST credit note, it locks the basis to original and inherits the rate from the source invoice. This is the normal case, and the basis you'll use almost every time.
Latest and manual — only for a commercial note
The latest and manual bases are not allowed on a GST credit note — ClaimDS blocks them there. They come into play only when the settlement isn't a Section 34 GST note at all, but a commercial, zero-GST note — for example when the party is a composition dealer, or the settlement is raised after the Section 34 window has closed. On a commercial note the rate isn't a tax figure, so you can use the latest statutory rate or type one in. Because either is a deliberate departure, ClaimDS makes you acknowledge a warning first.
In short
Use original for any real GST credit note — it's mandatory and it keeps the note aligned with the invoice. You'll only meet latest or manual on a commercial note, where ClaimDS has already determined a GST credit note isn't being issued. For the full decision guide, see set the tax basis on a settlement.
Related
Still stuck?
Book a demo and we'll walk through it on your own data — or just talk to us.