Credit note

[AKHIL MITTAL]

ARP wants to give quantities discount to its dealers by issuing credit note, Can he do so with out affecting GST/ without reversing GST. If yes, will the income of other party attract GST

AI Summary

Issuing Credit Notes for Discounts Permitted Under Section 15(3) CGST Act, 2017, With Proper Documentation and Agreements. A discussion on whether a company can issue a credit note for quantity discounts without affecting GST or reversing GST. The consensus is that issuing a credit note for discounts is permissible under Section 15(3) of the CGST Act, 2017, provided conditions are met, such as prior agreement with the buyer and proper documentation. However, reversal of Input Tax Credit (ITC) on the discount value is typically required unless the customer does not reverse the ITC. The discussion emphasizes the necessity of a pre-announced discount policy to ensure tax benefits.