Cenvat credit reverse against Discount

[RAM SHARMA]

Dear Experts,

We are a manufacturer unit. We are availing extra discount on some input services after cross the certain limit. Whether we have to reverse cenvat credit on such input services due to raise the debit note for availing the discount. Pl advice.

Thanks

AI Summary

Debate on Reversing CENVAT Credit for Input Services After Discounts: Experts Weigh In on Excise Duty Impact A manufacturing unit inquired about the need to reverse CENVAT credit on input services after receiving a discount, as evidenced by a debit note. Experts in the forum provided differing views. Some suggested no reversal is necessary if the excise duty component remains unaffected, while others argued for reversal if the discount impacts the service tax credit used against output excise duty. The discussion also touched on the implications under GST, where the treatment of discounts and the requirement for reversal depends on whether the duty paid character is disturbed.