Explain the provisions of the CGST Act, 2017 relating to issuance of Credit Note in the context of CGST. What is its impact on GST liability in this regard?

Issuance of Credit Note Section 34(1) of CGST Act, 2017 reveals that where one or more tax invoices have been issued for supply of goods or services or both and, Taxable value charged in the tax invoice is found to exceed the taxable value in respect of such supply; or Tax charged in invoice is found to exceed the tax payable in respect of such supply; or Where goods supplied are returned by the recipient; or Where goods or services or both supplied are found to be deficient registered supplier of goods and services or both may issue one or more credit note to recipient of such supply Impact of issuance of Credit Note As per Section 34(2) of the CGST Act, 2017, provides that the details of credit note should be declared in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made or the date of furnishing of the relevant annual return, whichever is earlier and the tax liability shall be adjusted in such manner as may be prescribed. However, such reduction in output tax liability of the supplier shall not be permitted, if the incidence of tax and interest on such supply has been passed on to any other person.