Credit Memo Not Fully Applying to AR Invoice – GST Tax Reversal Issue (India OU)

Hi Experts,

We are observing an issue in the India Operating Unit where a Credit Memo created against a legacy GST AR invoice is not fully applying to the original invoice.

Specifically:

• The Credit Memo does not completely apply to the AR invoice (even though the amount matches).
• GST tax lines (CGST/SGST/IGST) are not getting fully reversed.
• The tax reversal amount does not match the original invoice tax.

We are using Oracle EBS R12.2.9

Expected behavior:
When a full Credit Memo is created and applied, the GST tax should reverse proportionately and the invoice balance should become zero.