DISCOUNT ON GST, Goods and Services Tax - GST

[RAVI MUNDRA]

Dear Sir,

I have Purchased Some material @ 100 Rs Per Kg on 01/01/2025. At the time of Purchase I am aware that I will receive some discount but it was not fixed. I was aware i will receive discount of 6 Rs per kg but in next month I received discount of 8Rs per kg for the purchase made on 01/01/2025.

on 10/01/2025 i sold the same material @ 95 per kg.

Now Department is asking me to Reverse the input Credit taken on discount.

Posts / Replies

[VENU K]

There is no provision in GST law that can demand reversal of Input Tax in case of discount from recipient. The entire Section 15(3) relating to discounts is applicable only to the supplier and not the recipient.

The only possibility for department to take action against the recipient is to demand out put tax invoking this is a subside directly linked to price Sec 15(2)(e)

My understanding