Reversal of input tax credit required before supplier reduces output tax liability by credit note; pass-through of incidence disregarded. A supplier cannot reduce output tax liability via a credit note unless the input tax credit attributable to that credit note has been reversed by the registered recipient who availed it. The previous condition tying reduction to non-passage of tax incidence to another person is removed, so reversal by the recipient is the operative requirement.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Reversal of input tax credit required before supplier reduces output tax liability by credit note; pass-through of incidence disregarded.
A supplier cannot reduce output tax liability via a credit note unless the input tax credit attributable to that credit note has been reversed by the registered recipient who availed it. The previous condition tying reduction to non-passage of tax incidence to another person is removed, so reversal by the recipient is the operative requirement.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
