CREDIT NOTE

[AKHIL MITTAL]

THANKS FOR THE REPLY. THE DISCOUNT POLICY WAS DECIDED AT THE TIME OF SALE, BUT WE ARE MANUFACTURER OF FOOTWEAR & DON'T WANT TO REVERSE THE GST AS THE REFUND UNDER INVERTED DUTY STRUCTURE HAS ALREADY BEEN CLAIMED. CAN WE ISSUE CREDIT NOTES WITHOUT REVERSING GST PLEASE REPLY SPECIFICALLY.

AI Summary

Can a footwear manufacturer issue credit notes without reversing GST after claiming a refund under the inverted duty structure? A discussion on a forum regarding the issuance of credit notes without reversing GST under the inverted duty structure. The initial query was about whether a footwear manufacturer could issue credit notes without reversing GST, given that a refund had already been claimed. Opinions varied: one expert stated it was not possible, while another agreed, emphasizing the impracticality of benefiting from both scenarios. Others suggested it was feasible if the customer did not reverse the Input Tax Credit (ITC), noting that this practice is common among industrial players as it does not affect government revenue.