Proportionate reversal of input tax credit: evidence via CA/CMA certificate or recipient undertaking enables exclusion of post supply discounts. Suppliers issuing post supply discounts by tax credit notes may exclude those discounts from taxable value only if the recipient has proportionately reversed the input tax credit attributable to the discount; absent portal verification, suppliers should obtain a CA/CMA certificate (with UDIN) from the recipient specifying credit note and invoice details, amount and documentary reference of ITC reversal, or, for discounts below a de minimis threshold in a financial year, an undertaking from the recipient. These certificates/undertakings constitute admissible evidence under Section 15(3)(b)(ii) and must be produced to tax authorities when required.
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.
Proportionate reversal of input tax credit: evidence via CA/CMA certificate or recipient undertaking enables exclusion of post supply discounts.
Suppliers issuing post supply discounts by tax credit notes may exclude those discounts from taxable value only if the recipient has proportionately reversed the input tax credit attributable to the discount; absent portal verification, suppliers should obtain a CA/CMA certificate (with UDIN) from the recipient specifying credit note and invoice details, amount and documentary reference of ITC reversal, or, for discounts below a de minimis threshold in a financial year, an undertaking from the recipient. These certificates/undertakings constitute admissible evidence under Section 15(3)(b)(ii) and must be produced to tax authorities when required.
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