GSTAT says Credit Notes Must Reduce Turnover for Inverted Duty Refund

Rajshahi Banijya, a tea supplier, claimed an inverted duty structure refund for October 2021 to March 2022. The Department challenged the adjustment of credit notes worth ₹39,58,490, arguing that their linkage to invoices of the relevant period had not been established. GSTAT found that the credit notes matched the GSTR-1 statements and were supported by a Chartered Accountant’s certificate and voucher register. It held that the credit notes were properly considered in determining adjusted total turnover and dismissed the Department’s appeal.