DISCOUNTS Credit Notes

[BALAKRRISHNA PATNAIK]

My co. operating Super distributor set up, where in My Co. Invoices to the Super distributors also we some time ask to supply to selected supply in discounted rate. The price difference being claimed to us by super distributors.

My question is while settling of the price difference claim as a Mfg co. can we take GST on such price difference ?

please respond.

Thanks

Balakrrishna Patnaik

AI Summary

GST on post sale discounts: credit note timing controls output tax adjustment and input tax credit reversal.
Where a supplier issues a credit note to reflect post sale discounts, the supplier may adjust its output tax and the purchaser must reverse the corresponding input tax credit; however, a credit note must be declared in the return for its month of issue and not later than the statutory cut off following the financial year of supply, and credit notes issued after that cut off cannot reduce output tax or generate input tax credit unless no GST impact is recorded.