Credit Note

[Raja Sekhar]

I am the dealer of Mobiles, I am received credit Notes incentive,price drop and other schme from supplier without gst, can I reversal of input tax credit ?,

[Himansu Sekhar]

Only if the output supplier wants to reduce the liabilities

[Himansu Sekhar]

Please refer to Sec. 34 of the CGST Act

[YAGAY andSUN]

We duly endorse the view of expert.

[Ganeshan Kalyani]

Not required.

AI Summary

Input tax credit reversal can arise where supplier issues non GST credit notes reducing its output tax liability. Query whether reversal of input tax credit is required when suppliers issue credit notes for incentives and price drops without GST; Section 34 of the CGST Act applies. Reversal is noted to become relevant only if the supplier reduces its output tax liability by issuing the credit note; absent such reduction some respondents consider reversal unnecessary.