CREDIT NOTE IN GST

[NAMAN DOKANIA]

Is GST Leivable on Financial Credit Note recevied from supplier due to the fact, that it relates to the following:-

1. Early Payment.

2. Turnover Discount

3. Selling the purchased goods at a discount to retailer.

4. Other Incentive

AI Summary

Debate on GST Applicability to Financial Credit Notes: Post-Sale Discounts vs. Promotional Schemes Under Section 15(3)(b) of CGST Act A forum discussion addressed whether GST is applicable to financial credit notes received from suppliers for reasons such as early payment, turnover discounts, selling goods at a discount, and other incentives. One participant noted that early payment and turnover discounts are post-sales discounts subject to conditions under Section 15(3)(b) of the CGST Act, while selling at a discount and other incentives are promotional schemes and taxable. Another participant agreed but emphasized that issuing credit notes with GST is optional for suppliers, and GST cannot be levied on buyers for post-sale discounts. The applicability of GST to promotional schemes remains contentious.