Reversal of input tax credit required when credit or debit notes change taxable purchase value, excluding cash discounts. Reversal of Input Tax Credit is required where a credit or debit note changes the tax credit claimed by a purchaser for Delhi sales/purchases; purchasers must adjust ITC in the period the note is issued. Credit notes arising from post sale discounts, returns, rate/quantity variation, consideration for facilities, or expense reimbursements trigger purchaser ITC reduction; cash discounts for early payment are excluded from output tax adjustment and need not be reported or lead to ITC reversal.
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 when credit or debit notes change taxable purchase value, excluding cash discounts.
Reversal of Input Tax Credit is required where a credit or debit note changes the tax credit claimed by a purchaser for Delhi sales/purchases; purchasers must adjust ITC in the period the note is issued. Credit notes arising from post sale discounts, returns, rate/quantity variation, consideration for facilities, or expense reimbursements trigger purchaser ITC reduction; cash discounts for early payment are excluded from output tax adjustment and need not be reported or lead to ITC reversal.
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