Tell us about one dealer scheme. You get the route, the last date for a GST credit note, and what your distributor must do in IMS.
| Sales | Rule that applies | Route | GST (₹) |
|---|
Distributor's CA? Match these credit notes against GSTR-2B →
From 1 Nov 2026 a discount after the sale cuts GST if you issue a credit note and your buyer reverses the matching credit. When it was agreed no longer matters.
For sales before 1 Nov 2026 the old rule asked for an agreement at or before the sale, tied to the invoices. Whether the new rule reaches those sales hasn't been clarified, so we call it contestable. Confirm with your CA
A GST credit note for a year's sales must be declared by 30 November after that year ends, or by the date you filed the annual return if that is earlier. A note dated in November goes in a return filed in December, which is why we mark it at risk. Confirm with your CA
A financial credit note changes nothing for GST: you keep paying tax on the full price and your buyer keeps the credit. If the agreement buys promotion work at a stated price, it's a service your distributor bills you for.
Your distributor accepts, rejects or parks the note in IMS. A rejected note puts the tax back on your return; a parked one is treated as accepted after one return period.
The CA certificate for credit notes over ₹5 lakh was withdrawn on 1 Oct 2025. You don't need one.