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Home Articles Goods and Services Tax - GST CA.LALIT MUNOYAT Experts This |
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Treament of GST in case of issue of credit note |
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Treament of GST in case of issue of credit note |
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Treatment of GST for Credit Note for Discount given post supply Sec 15 (3) provides that he value of the supply shall not include any post sales discount except
As per sec 34. (1) –Credit & Debit Notes : A supplier may issue to the recipient a credit note for a post sales discount subject to the condition that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person. Explanation to Rule 89(2) provides that where the amount of tax has been recovered from the recipient, it shall be deemed that the incidence of tax has been passed on to the ultimate consumer. Section 12B of the Central Excise Act provides that every person who has paid the duty of excise on any goods under this Act shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such duty to the buyer of such goods. Facts:
Question At the time of assessment how would the supplier prove that the input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply. There is no way for the supplier to verify it from the recipient. In such a case what will be the consequence if the supplier takes anyone of the following meaures:
Your expert views on this subject shall be highly appreciated.
By: CA.LALIT MUNOYAT - May 19, 2018
Discussions to this article
While the supplier can check the reversal by the recipient on matching of the monthly returns, the question now boils down to is "How to ensure that the incidence of tax has not been passed to any other person"
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