TaxTMI 
TaxTMI 
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
Credit note
30 Apr 2018 
5 Replies 
1314 Views Asked by
Quantity discount via credit note permitted under GST if conditions and documentation met; input tax credit reversal may be required.
Quantity discounts may be given by issuing a credit note if statutory conditions for post supply value adjustments are met; the discount must be known to the buyer at or before supply or be covered by a pre announced discount policy, and must be supported by invoice, agreement and books of account. Reversal of the corresponding input tax credit is required unless the recipient does not reverse its claimed credit, in which case the supplier may issue credit notes without reversing GST, subject to documented evidence and coordination. (AI Summary)
Quantity discounts may be given by issuing a credit note if statutory conditions for post supply value adjustments are met; the discount must be known to the buyer at or before supply or be covered by a pre announced discount policy, and must be supported by invoice, agreement and books of account. Reversal of the corresponding input tax credit is required unless the recipient does not reverse its claimed credit, in which case the supplier may issue credit notes without reversing GST, subject to documented evidence and coordination. (AI Summary)