XYZ. Ltd(supplier) has given price difference to ABC Ltd.(recipient) by issuing a non gst document, because as per Sec15 discount which has not been agreed at the time of supply cannot be reduced from the value of supply.( This is also clarified from advance ruling sought by UltraTech Cement.). Now ABC Ltd. has not reversed the ITC proportionate to price diff received from XYZ.Ltd. ABC Ltd. has shown the price diff as its income in P&L A/C. My questions are:
1. Is there any need to reverse ITC proportionate to price diff received?
2. Whether there is any GST liability on price diff shown as income in P&L? (If ITC has not been reversed)
Price Difference from Supplier as Income: Does It Trigger GST Liability? Ambiguity in GST Law Discussed. A discussion on a forum addresses whether a price difference received from a supplier, shown as income in the profit and loss account, incurs GST liability. The supplier issued a financial credit note without GST disclosure, and the recipient did not reverse the Input Tax Credit (ITC). Views expressed suggest that since the price difference is treated as an independent financial transaction, GST may apply. There is debate over whether to reverse ITC or treat the price difference as a service supply. The discussion highlights ambiguity in GST law regarding such transactions. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
