TaxTMI 
TaxTMI 
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
CREDIT NOTE IN GST
27 Aug 2022 
2 Replies 
1889 Views Asked by
Post sale discount treatment: GST not leviable on buyer; supplier may optionally issue a credit note, while promotional incentives are taxable.
Post sale discounts such as early payment and turnover discounts reduce the transaction value if they satisfy the statutory conditions and the supplier may optionally issue a credit note; GST should not be charged on the buyer for such discounts. Promotional incentives and downstream discounts to retailers are generally taxable unless the contractual and commercial arrangements demonstrate a reduction in the supplier's transaction value, a determination that requires factual analysis and is often disputed. (AI Summary)
Post sale discounts such as early payment and turnover discounts reduce the transaction value if they satisfy the statutory conditions and the supplier may optionally issue a credit note; GST should not be charged on the buyer for such discounts. Promotional incentives and downstream discounts to retailers are generally taxable unless the contractual and commercial arrangements demonstrate a reduction in the supplier's transaction value, a determination that requires factual analysis and is often disputed. (AI Summary)