Dear Sir/Madam,
Kindly advise is GST Applicable on Value Reduction ., ( that on previous supplies )
Recipient (Customer ) debited only basic amount (Apr to May22)., As they already passed the amount in higher side & GST Benefit taken on full value.
Regards
Debate on GST Applicability: Should Tax Adjust for Value Reduction in Supplies? Opinions Vary on ITC Reversal. A discussion on the applicability of GST on value reduction for previous supplies generated diverse opinions. The primary issue was whether GST should be adjusted when the recipient debits only the basic amount after initially taking GST benefits on a higher value. Responses varied: some argued GST applies only on supply, not on value reduction; others stated that if a seller reduces the price without claiming a GST refund, the recipient need not reverse the input tax credit (ITC). The conversation also touched on post-sale discounts, unwritten laws, and the implications of selling below cost price. Participants shared personal views, emphasizing that these should not be taken as professional advice. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
