Commercial Credit Note - GST

[V Bharath]

Dear Respected Members,

I am working in organised retail sector. My concern is about Commercial Credit Note. We purchase goods from supplier and sell to retail customers. We claim supplier towards the discounts given to customers and the supplier pass credit note towards a portion of discount, not 100% of discount.

They passed credit note with out GST saying it is commercial credit note as they can not link the products to the original invoice.

Now, please help me to understand the meaning of Commercial credit note and what is our liability being receiver.

Thanking you all in advance

-- Bharath

AI Summary

Commercial credit note practice under GST: credit notes must include tax and be linked to original invoices to affect liability.
Issue: suppliers issuing so called Commercial Credit Notes without GST and without linking them to original invoices. Key points: there is no separate legal concept of a commercial credit note under GST; a credit note that reduces taxable turnover should be issued by the supplier, include the tax component, and be linked to the original tax invoice; supplier tax liability reduces only if the purchaser reduces its input tax credit; parties may record discounts on the taxable value exclusive of tax to avoid GST reversal.