Invoice-disclosed discounts only reduce taxable turnover; post-sale credit notes not shown in the tax invoice are not deductible.

Under the Kerala Value Added Tax Act, post-sale discount is deductible from taxable turnover only when it is separately shown in the prescribed tax invoice and tax is collected on the net price. The invoice format is central to the statutory scheme because turnover is computed after allowing only discounts reflected in the invoice. The later amendment was treated as clarificatory of this existing requirement, not as a new condition. Accordingly, credit notes issued after sale, if not reflected in the tax invoice, do not reduce taxable turnover.

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Issues: Whether post-sale discount granted through credit notes, not shown in the tax invoice, is deductible from taxable turnover under the Kerala Value Added Tax Act, 2003.

Analysis: The charging provision taxes the taxable turnover, and the statutory definition of turnover permits exclusion of discount only when it is separately shown in the prescribed tax invoice. The prescribed invoice format under the VAT Rules requires disclosure of the sale value, tax, and discount, making the invoice mechanism central to the deduction claim. The later amendment, which expressly referred to the tax invoice and to payment of only the reduced amount, was treated as clarificatory of the original scheme and not as introducing a new condition. Accordingly, any discount, whether trade discount or cash discount, qualifies for exclusion only if it is separately reflected in the tax invoice and the tax is collected on the net price.

Conclusion: Post-sale discounts granted through credit notes, not reflected in the tax invoice, are not deductible from taxable turnover. The challenge to the disallowance fails, and the demand on the original sale price is upheld.

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